diff --git a/hw/mem/cxl_type3.c b/hw/mem/cxl_type3.c
index 7194c8f902..06c6f9bb78 100644
--- a/hw/mem/cxl_type3.c
+++ b/hw/mem/cxl_type3.c
@@ -30,6 +30,7 @@
 #include "hw/pci/msix.h"
 
 #define DWORD_BYTE 4
+#define CXL_CAPACITY_MULTIPLIER   (256 * MiB)
 
 /* Default CDAT entries for a memory region */
 enum {
@@ -567,6 +568,50 @@ static void ct3d_reg_write(void *opaque, hwaddr offset, uint64_t value,
     }
 }
 
+/*
+ * TODO: dc region configuration will be updated once host backend and address
+ * space support is added for DCD.
+ */
+static bool cxl_create_dc_regions(CXLType3Dev *ct3d, Error **errp)
+{
+    int i;
+    uint64_t region_base = 0;
+    uint64_t region_len =  2 * GiB;
+    uint64_t decode_len = 2 * GiB;
+    uint64_t blk_size = 2 * MiB;
+    CXLDCRegion *region;
+    MemoryRegion *mr;
+
+    if (ct3d->hostvmem) {
+        mr = host_memory_backend_get_memory(ct3d->hostvmem);
+        region_base += memory_region_size(mr);
+    }
+    if (ct3d->hostpmem) {
+        mr = host_memory_backend_get_memory(ct3d->hostpmem);
+        region_base += memory_region_size(mr);
+    }
+    if (region_base % CXL_CAPACITY_MULTIPLIER != 0) {
+        error_setg(errp, "DC region base not aligned to 0x%lx",
+                   CXL_CAPACITY_MULTIPLIER);
+        return false;
+    }
+
+    for (i = 0, region = &ct3d->dc.regions[0];
+         i < ct3d->dc.num_regions;
+         i++, region++, region_base += region_len) {
+        *region = (CXLDCRegion) {
+            .base = region_base,
+            .decode_len = decode_len,
+            .len = region_len,
+            .block_size = blk_size,
+            /* dsmad_handle set when creating CDAT table entries */
+            .flags = 0,
+        };
+    }
+
+    return true;
+}
+
 static bool cxl_setup_memory(CXLType3Dev *ct3d, Error **errp)
 {
     DeviceState *ds = DEVICE(ct3d);
@@ -635,6 +680,13 @@ static bool cxl_setup_memory(CXLType3Dev *ct3d, Error **errp)
         g_free(p_name);
     }
 
+    if (ct3d->dc.num_regions > 0) {
+        if (!cxl_create_dc_regions(ct3d, errp)) {
+            error_append_hint(errp, "setup DC regions failed");
+            return false;
+        }
+    }
+
     return true;
 }
 
@@ -930,6 +982,7 @@ static Property ct3_props[] = {
                      HostMemoryBackend *),
     DEFINE_PROP_UINT64("sn", CXLType3Dev, sn, UI64_NULL),
     DEFINE_PROP_STRING("cdat", CXLType3Dev, cxl_cstate.cdat.filename),
+    DEFINE_PROP_UINT8("num-dc-regions", CXLType3Dev, dc.num_regions, 0),
     DEFINE_PROP_END_OF_LIST(),
 };