Mobile-Health Network Solutions (MNDR) shares rocketed higher Friday after the company announced it's getting into the data center business in a big way. The health-tech company signed a Memorandum of Understanding with PPG PP GRID SDN. BHD to acquire project companies developing two high-capacity, AI-optimized data centers in Sarawak, Malaysia.

The Deal Structure

Here's where it gets interesting. MNDR plans to compensate PPG with up to $120 million for these assets, but the payment structure is unusual. The company may issue up to three million Class A ordinary shares valued at $40 each. That's more than 13 times the stock's closing price of $3.04 the day before the announcement—a hefty premium that explains why existing shareholders are celebrating.

PPG will handle the heavy lifting on permits and land rights for the data centers, while MNDR maintains majority control. As a sweetener, PPG founders will join the board. The deal still needs due diligence and regulatory approvals, with the parties expecting to sign a definitive Share Purchase Agreement within 90 days.

What They're Buying

The acquisition includes two facilities at very different scales. The first is a 25MW data center planned for completion in the third quarter of 2027, though there's a possibility it could come online earlier—potentially before the fourth quarter of 2026. The second is considerably larger: a 150MW facility targeted for completion by the end of 2028.

Once operational, these data centers will provide the computing muscle for MNDR's AI-driven health and technology ecosystem.

Why This Matters

Co-CEO Dr. Siaw Tung Yeng explained the strategic rationale: "By securing these data centers and the low-cost green energy they will provide, we can significantly reduce the long-term costs of operating our ecosystem's high-density workloads, thereby ensuring maximum scalability for this unique platform."

He added that the excess AI computing capacity will enable the company to launch two new services globally: Token as a Service (TaaS) and AI-Powered Healthcare Platform as a Service (APaaS). "These services can help position us as a catalyst in supporting the growing digital transformations currently in progress across Southeast Asia and Africa," he said.

Price Action: MNDR shares climbed 28.62% to $3.91 in Friday trading.