Sime Darby Property Bhd, a leading Malaysian property developer, aims to build more data centers in future especially at its flagship Elmina Business Park. “If the economics are right and it makes financial sense, we will look to take on more data centre projects as we aim to build a solid recurring income base,” said group managing director and chief executive officer Datuk Seri Azmir Merican at a virtual media briefing in March following the group’s fourth-quarter results announcement.
Sime Darby Property is currently working on data centre developments with Google-affiliated Pearl Computing Malaysia Sdn Bhd, a wholly owned unit of Singapore-based Raiden APAC Pte Ltd, with a total investment of RM7.6 billion (US$ 1.72 billion).
The first project, announced in May 2024, involves a 49-acre hyperscale data centre in Elmina Business Park, slated for completion in 2026. The second, revealed in December 2024, is a RM5.6 billion (US$ 1.27 billion) investment for a 77-acre data centre at the same site, expected to be completed by 2027.
Both projects will operate under 20-year lease agreements with Pearl Computing Malaysia, with options to extend for two additional five-year terms, according to reports.
Sime Darby Property is Malaysia’s first and only developer to execute a built-to-suit lease for a data centre. In October, a groundbreaking ceremony inaugurated by the Prime Minister of Malaysia was held to mark the official start of construction of Google’s first data centre at Elmina Business Park, according to a press release published on its website.
Gary Demasi, Google’s Global Director of Data Center Energy and Location Strategy, had then said, “We are pleased to have broken ground on our first data centre and cloud region campus in Malaysia at Elmina Business Park, and we look forward to further potential collaboration with Sime Darby Property as part of our continued efforts to advance the country’s goals of boosting its digital competitiveness and establishing itself as a regional hub for AI innovation.”
The hyperscale data centre will be built by Sime Darby Property to Google’s customised specifications and infrastructure requirements. Upon completion, it will be operated by Google.
This marks Elmina Business Park’s first major step towards becoming Greater Klang Valley’s Digital Hub equipped with infrastructure essential for the digital economy, including large-scale water and energy solutions. The development will serve as a blueprint for its future business parks throughout Malaysia. It is expected to attract additional data centres, large-scale manufacturers, and small and medium-sized enterprises (SMEs). Upon full development of Elmina Business Park in 2035, the broader business ecosystem is projected to create 35,000 job opportunities to meet operational demands, the company said in a press release.
