Compal and ARC Cloud Sign MOU to Build Large-Scale AI Infrastructure

What the MOU covers

The agreement was signed during the 2026 OCP Global Summit. According to the companies, it sets a framework for collaboration across multiple projects, spanning advanced AI computing systems, high-performance GPU clusters and next-generation data center infrastructure.

Adam Huang, a member of the ARC Cloud Board of Directors, and Douglass Chen, Chief Strategy Officer at Compal Electronics, signed the document. The partnership also fits ARC Cloud's plans for continued expansion through significant capital investments in AI infrastructure and data center development across the United States, including California, Nevada, Texas and Georgia.

The companies say the cooperation goes beyond AI server supply. It is meant to include system engineering, technical validation, deployment coordination and ongoing support. The stated aim is to speed up the delivery of computing capacity for AI model training, fine-tuning and inference.

Who contributes what

Compal will bring its expertise in AI server manufacturing, rack-scale integration and liquid-cooling technologies. ARC Cloud will contribute its capabilities in infrastructure investment, strategic technology partnerships, and the engineering and operation of high-performance GPU clusters.

The two sides plan to align system configurations, production schedules and data center deployment requirements. They are also exploring cooperation in joint engineering, system validation and lifecycle technical support. According to the announcement, these efforts are intended to improve deployment efficiency and operational readiness as AI computing environments grow in scale and complexity.

Alan Chang, Vice President of the Infrastructure Systems Business Group (ISBU) at Compal, said AI computing is moving toward "increasingly integrated, high-density systems that require closer coordination between technology manufacturers and infrastructure providers." He added that the partnership lets Compal explore new opportunities to support the growing NeoCloud market.

William Tiah, Co-Founder of ARC Cloud, said AI customers "need more than access to GPUs." In his words, they need computing environments that deliver consistent performance for demanding workloads, and working with Compal brings system engineering and infrastructure planning closer together.

The companies involved

Compal, founded in 1984 and listed on the Taiwan Stock Exchange (TWSE: 2324), describes itself as a leading global manufacturer of computers and smart devices. It has expanded into cloud servers, automotive electronics, smart medical and healthcare, and advanced communication solutions. The company is headquartered in Taipei, Taiwan.

ARC Cloud, short for Accelerated Research Computing, is a U.S.-based, full-stack NeoCloud company. It invests in, develops and operates large-scale AI computing infrastructure, and offers dedicated GPU compute, managed infrastructure, model deployment and production inference for AI developers, enterprises and cloud service providers.

What it means, and its limits

The announcement shows a hardware manufacturer and a GPU cloud operator trying to coordinate server design, production and data center rollout more closely. That is relevant for the NeoCloud segment, where operators depend on timely delivery of integrated, liquid-cooled systems.

The commitments remain limited, however. The companies state that the MOU is not a binding investment or purchase commitment. The potential 100 MW roadmap is exploratory and does not represent a confirmed project, capacity commitment, purchase commitment or revenue forecast. Specific projects, capacity, commercial terms and timelines are subject to further agreements, and actual outcomes may differ from current expectations.