DMG Blockchain Solutions, a vertically integrated operator in blockchain infrastructure and data center technology, has entered a second memorandum of understanding with the Malahat Nation’s Economic Development Corporation, known as YOS. The new agreement signals mutual intent to form the Malahat-DMG Utility Limited Partnership, a utility that will be majority-owned by the Nation and structured under regulatory oversight.
The partnership is planned to supply electricity and natural gas to clean technology deployments and digital infrastructure situated on Malahat lands. Leadership within the Nation framed the partnership not only as a technical build but as a measure of self-deterministic control over how energy is sourced and deployed on its territory, aligning infrastructure growth with environmental priorities while generating new economic lanes for its members.
Energy Sovereignty Tied to AI Infrastructure Buildout
This development builds on an earlier 2024 MoU between DMG and YOS, which outlined plans to co-develop 30 megawatts of artificial intelligence compute facilities, structured as sovereign data centers with ownership evenly shared between both parties. That earlier document positioned the initiative as a first attempt at constructing AI data centers in Canada under Indigenous leadership.
DMG indicated that the two MoUs are expected to mature into binding agreements. In combination, they would formalize a utility structure responsible for powering both the AI campus and broader community infrastructure on the lands located near Mill Bay in British Columbia. The company characterized the initiative as a prospective first in the province for a regulated utility developed under Indigenous control and an initial milestone in the buildout of an Indigenous-led AI infrastructure campus on a national scale.
DMG provides additional update to its developing relationship with the Malahathttps://t.co/pnJmd1GUUo
— DMG Blockchain Solutions (@dmgblockchain) October 28, 2025
Joint Build of Backbone Energy Infrastructure
Under the terms of the current MoU, Malahat Nation and DMG will cooperatively develop and run core energy assets, including substation improvements, integration points with BC Hydro’s grid, and possible distribution rights for natural gas through an anticipated partnership with FortisBC.
Executives at DMG Blockchain Solutions framed the agreement as an example of how digital infrastructure deployment, clean energy development, and the work of reconciliation can advance in parallel when scope and equity are shared.
Strategic Positioning at the Intersection of Energy, AI, and Governance
The announcement places this collaboration within an emerging trend where Indigenous governments assert stronger agency over the design, capitalization, and governance of energy and data infrastructure sited on their lands. The regulated utility structure is intended to provide a stable supply for energy-intensive AI workloads while protecting ecological objectives and local economic participation.
By placing ownership, governance, and benefit flows in Indigenous hands while enlisting a specialized commercial partner for build and operation, the model is being positioned as a template for future projects that attempt to reconcile technological expansion with sovereignty claims and climate-aligned resource stewardship.