SAN JOSE, California, Oct 27 2026, Compal Electronics and ARC Cloud have signed a memorandum of understanding (MOU) to explore opportunities in large-scale artificial intelligence (AI) computing infrastructure.
The agreement was signed during the 2026 OCP Global Summit. It sets a framework for cooperation across several potential projects, including an exploratory data centre development roadmap of up to 100 megawatts (MW).
However, the proposed roadmap is not a confirmed project or investment commitment. Specific plans, capacity and timelines will depend on further agreements and other conditions.
The partnership brings together Compal’s AI server manufacturing expertise and ARC Cloud’s experience in developing and operating large-scale AI computing infrastructure.
Companies Aim to Support Growing AI Demand
The collaboration will focus on helping deliver computing systems for demanding AI workloads. These include training AI models, fine-tuning them and running AI applications through a process known as inference.
As demand for AI computing grows, companies need more than powerful processors. They also need reliable infrastructure, efficient cooling and careful coordination between hardware production and data centre operations.
Through this partnership, Compal and ARC Cloud aim to bring these elements closer together. Their work will cover system engineering, technical testing, deployment planning and ongoing support.
Compal Vice President of Infrastructure Systems Business Group Alan Chang said the partnership would build on the company’s engineering strengths and help it explore opportunities in the growing NeoCloud market.
NeoCloud providers specialise in delivering computing resources, particularly GPU capacity, for AI development and other demanding workloads.
How Compal and ARC Cloud Will Work Together
Under the MOU, Compal will contribute its AI server manufacturing capabilities, rack-scale integration expertise and liquid-cooling technologies.
ARC Cloud will focus on infrastructure investment, technology partnerships, and the engineering and operation of high-performance graphics processing unit (GPU) clusters.
The companies will also explore ways to coordinate system configurations, production schedules and data centre deployment requirements.
In addition, they plan to examine opportunities for joint engineering, system validation and technical support throughout the systems’ operating life.
These efforts aim to improve deployment efficiency and help prepare infrastructure for increasingly complex AI workloads.
ARC Cloud Co-Founder William Tiah said AI customers need computing environments that deliver consistent performance, not just access to GPUs.
He added that working with Compal could help bring system engineering and infrastructure planning closer together as demand for AI computing continues to rise.
Expansion Plans Across the United States
The partnership also aligns with ARC Cloud’s plans to expand its AI infrastructure and data centre development activities in the United States.
The company has identified California, Nevada, Texas and Georgia as locations for its broader expansion plans.
However, the announcement does not confirm that a 100 MW facility will be built in any of these states. The proposed roadmap remains exploratory, and further agreements would be required before specific projects can proceed.
About the Companies
Founded in 1984, Compal Electronics is a global manufacturer of computers and smart devices. The company has also expanded into cloud servers, automotive electronics, healthcare technology and advanced communications.
ARC Cloud, short for Accelerated Research Computing, is a US-based NeoCloud company focused on AI computing infrastructure. Its services include data centre development, GPU cluster deployment, infrastructure operations and cloud-based AI services.
The partnership reflects growing efforts to connect AI hardware manufacturing with the infrastructure needed to support large-scale computing.
Source: PR Newswire | Rewritten By Minutesmy
