2024 Newsmakers: Riding the data centre boom

Friday 14 Mar 2025

14 Jan 2025, 02:50 pm

This article first appeared in The Edge Malaysia Weekly on December 30, 2024 - January 12, 2025

The inflow of data centre investments into the country benefited more than just the telecommunications and tech players.

Land owners and construction players gained too.

(Photo by Sam Fong/The Edge)

Tan Sri Leong Hoy Kum

Founder and group managing director of Mah Sing Group Bhd

No stranger in the property fraternity, Mah Sing Group Bhd’s (KL:MAHSING) Tan Sri Leong Hoy Kum is known for his quick turnaround strategies, as seen in the developer’s long list of projects. The developer jumped on the data centre bandwagon in May when it signed its first joint venture (JV) with Bridge Data Centres Malaysia Sdn Bhd, a company wholly owned by Bain Capital, to develop 17.55 acres of land with a planned capacity of up to 100MW at its Southville City township in Bangi, Selangor.

Subsequently in October, Mah Sing signed a second partnership with the same company for 200MW or double the planned capacity. The developer has earmarked 150 acres of its land bank at Southville City for the development of a data centre hub, with a total planned capacity of up to 500MW.

The JV with Bridge Data Centres is in line with Mah Sing’s plans to diversify its revenue stream beyond traditional property development as the builder primarily develops homes, offices and retail spaces. Data centres are thought to be a more recession-resistant business model, which would help to mitigate the risks associated with the cyclical nature of property development. — By Rosalynn Poh

(Photo by Shahrin Yahya/The Edge)

Datuk Seri Azmir Merican

Group managing director of Sime Darby Property Bhd

Property giant Sime Darby Property Bhd (KL:SIMEPROP) is going big on leasing data centres to meet the growing demand in the global digital economy. In May, the property developer announced plans to build and lease a hyperscale data centre for Pearl Computing Malaysia, a wholly owned subsidiary of Google’s Singapore-based unit Raiden APAC, on a 49-acre site at Elmina Business Park, marking its entry into the data centre segment. The project, valued at RM2 billion, is expected to be completed by 2026.

On Dec 2, SimeProp then signed an agreement for a 20-year lease of data centre facilities to Pearl Computing for up to RM5.6 billion, beginning as early as 2027.

The build-and-lease agreement comes with options to renew for two additional five-year terms. Similarly, the RM2 billion deal in May is also for a 20-year lease, with options to renew for additional five-year terms.

Analysts expect the developer’s earnings profile to change significantly in 2026-2027, when rental earnings for its data centre projects kick in.

The property group is currently developing these additional data centre facilities at its 77-acre site at Elmina Business Park — which it described as the Klang Valley’s largest freehold industrial business hub.

Datuk Seri Azmir Merican, who assumed his current position as Sime Darby Property’s group managing director in April 2020, received the Outstanding Property CEO award at The Edge Malaysia Property Excellence Awards 2023, an award presented to CEOs or professionals who have taken their company to exceptional levels. In 2024, Sime Darby Property took the coveted top spot at The Edge Malaysia Top Property Developers Awards, its second time since 2009. — By Rosalynn Poh

(Photo by Mohd Izwan Mohd Nazam/The Edge)

Gooi Seong Lim

Chairman and managing director of Crescendo Corp Bhd

Johor-based landowner Crescendo Corp Bhd (KL:CRESNDO) has been on an aggressive land disposal for the development of data centres in the past year, cashing in on the current boom in demand.

In December, the developer sold five plots of freehold vacant land in Iskandar Puteri to Data Cloud Innovation Sdn Bhd, a wholly owned unit of UK-based Magma Holding Company Ltd, for RM120.06 million in cash. The net book value of the land, based on audited financial statements as at Jan 31, 2024, was only RM19.15 million.

Crescendo has sealed six other deals since November 2023 with other data centre operators including Yu Ao Sdn Bhd, Singapore-based STT GDC Malaysia 2 Sdn Bhd, Microsoft Payments (Malaysia) Sdn Bhd, Nanda Digital Sdn Bhd and Digital Halo Pte Ltd, bringing total land sales to RM792.17 million.

The company’s rationale for the disposals is that the surrounding areas that it owns will gain from the spillover activities of the new landowners.

At the same time, Crescendo has also been quick to acquire land to take advantage of the Johor Bahru-Singapore Rapid Transit System (RTS) Link. In September 2023, the company bought just over three acres near the RTS station in Johor Bahru to build serviced apartments.

Crescendo, whose major shareholders are the Gooi siblings, also controls Johor-based oil palm planter and crude palm oil miller Kim Loong Resources Bhd (KL:KMLOONG).

Aside from his role at Crescendo, Gooi Seong Lim is also the executive chairman of Kim Loong Resources. In 2024, Kim Loong Resources clinched a place in The Edge’s Billion Ringgit Club Awards’ winner list after a five-year hiatus. — By Rosalynn Poh

(Photo by Low Yen Yeing/The Edge)

Datuk Lin Yun Ling

Managing director of Gamuda Bhd

Led by founder and managing director Datuk Lin Yun Ling, Gamuda Bhd (KL:GAMUDA) has demonstrated the ability to adapt and thrive amid various challenges.

Riding on the inflow of investments in data centres in Malaysia, Gamuda leveraged its expertise in public infrastructure, particularly tunnelling works, to become a major player in data centre development. So far this year, it booked close to RM3.5 billion in its order books to build data centres in Cyberjaya and Sungai Buloh.

Gamuda is also now reaping the fruits from its regionalisation strategy, with its construction order book hitting RM32 billion for its financial year ended July 31, 2024 (FY2024) against RM25 billion in FY2023. Of the RM32 billion, 40% are from abroad.

The group ventured overseas almost two decades ago and now has a presence in Taiwan, Singapore, Vietnam and Australia. Gamuda’s early venture abroad puts it in good stead to win bigger jobs as it gains experience and expertise in civil construction in different markets, having gained the confidence of clients.

In October, Gamuda and its joint-venture partners were awarded a RM4.3 billion main design and build contract for Taipei’s Mass Rapid Transit (MRT) system in Taiwan. Gamuda’s share in the JV is 75% and its share of the contract value is RM3.2 billion, which could go up to RM8.1 billion for additional works contracts.

Having risen about 87% year-to-October, the contract win further boosted Gamuda’s share price, culminating in its entry into the FBM KLCI as one of the 30 component stocks.

At the time of writing, Gamuda’s share price doubled, bringing its market capitalisation to RM26.22 billion, no small feat for a construction company, especially with large infrastructure projects getting scarce given the government’s tight financial position.

In an interview with The Edge in 2023, Lin said Gamuda would have to look for even more contracts abroad as the Malaysian government could be limited in its capacity to undertake major infrastructure projects due to the huge subsidy burden the latter had to bear.

The company’s success can also be attributed to its strong leadership team, comprising young and dynamic individuals in their mid-30s to 40s. This forward-thinking by Lin has likely played a significant role in driving the company’s aggressive expansion and attracting strong investor interest into the counter.

Note that in September, Gamuda clinched The Edge Billion Ringgit Club 2024 Company of the Year award. — By Intan Farhana Zainul

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