Malaysia’s property sector is witnessing a strategic shift as developers like Sime Darby Property Bhd pivot toward digital infrastructure, with data centers emerging as a key focus. The company plans to expand its portfolio of such facilities, particularly at its Elmina Business Park, to establish a stable recurring revenue stream. Group managing director Datuk Seri Azmir Merican emphasized this direction during a recent earnings briefing, stating future projects would depend on financial viability.
Two major data center developments are already underway in partnership with Pearl Computing Malaysia, a Google-affiliated firm backed by Singapore’s Raiden APAC. The first, announced in May 2024, involves a 49-acre hyperscale facility with a RM7.6 billion investment, while the second, unveiled in December 2024, spans 77 acres with RM5.6 billion in funding. Both projects, set for completion by 2026 and 2027 respectively, include 20-year leases with extension options.
A significant milestone was reached in October when Malaysia’s Prime Minister inaugurated construction of Google’s first data center at Elmina. Gary Demasi, Google’s Global Director of Data Center Energy and Location Strategy, highlighted the project’s role in advancing Malaysia’s digital ambitions, including AI innovation. The facility, tailored to Google’s specifications, will be operated by the tech giant upon completion.
Elmina Business Park is poised to become a cornerstone of Malaysia’s digital economy, offering critical infrastructure like energy and water solutions. The development is expected to attract further investments from manufacturers and SMEs, with full completion by 2035 projected to generate 35,000 jobs. Sime Darby Property’s approach could set a precedent for future business parks nationwide, reinforcing Malaysia’s position as a regional digital hub.