The influx of FDI saw increased demand for data centre in Malaysia which prompted property companies to venture into data centre. Johor remains the favoured location for data centre due to its proximity to Singapore. In view of the growing demand for data center in Johor, UEM Sunrise (Non-rated) has recently inked a memorandum of understanding (MoU) with LOGOS Infrastructure Holdco Pte Ltd to explore the opportunity in developing a data center campus in Gerbang Nusajaya, Johor.
Besides, the spillover demand for data center has driven the development of data center in Klang Valley due to adequate power supply and good fiber connectivity in Klang Valley. Notably, Sime Darby Property (Non-rated) announced that it is developing a hyperscale data center at Elmina Business Park for a multinational technology company. The data center will be located on an approximately 49-acre site. Following completion of construction, the parties will enter a 20-year lease valued at up to RM2b. On another note, Mah Sing Group recently announced that it has entered into a collaboration agreement with Bridge Data Centers (BDC) for the joint venture development of data center facilities and infrastructure on 17.55 acres of land in Southville City township.
Data center ventures to increase recurring income and improve value of landbank. MIDF said it views the venture of data
center by property companies positively as it allows property companies to unlock value of landbank of property companies.
The setting up of the data center will also improve the attractiveness of the companies’ business parks and townships.
Besides, data center ventures will allow property companies to increase recurring income in the form of rental or profit
sharing of data center business. The house believes that income from data center should remain stable soon due to the growing demand for data center in Malaysia.
