KUALA LUMPUR: Sime Darby Property Bhd (SD Property) has signed a RM5.6 billion build-and-lease agreement with Pearl Computing Malaysia Sdn Bhd for development of additional data centre facilities at Elmina Business Park Phase 2.
In a statement, SD Property said the data centre facilities on a 77-acre site at Elmina Business Park. are to meet customised specifications and infrastructure requirements, on a 77-acre site at Elmina Business Park.
Trading in the company's shares were halted until 10am yesterday following the announcement.
The counter closed 4.9 per cent or seven sen higher to RM1.50, giving it a market capitalisation of RM10.50 billion.
In May this year, SD Property announced its partnership with Pearl Computing, a wholly-owned subsidiary of a multinational technology company, to develop the first data centre at Elmina Business Park.
This was followed by an announcement by Google to indicate that its first Google data centre and Google Cloud region would be at SD Property's Elmina Business Park.
It stands to reason that this latest announcement by SD Property is connected to additional Google data centres at the business park.
Meanwhile, SD Property said the new facilities will be located in close proximity to Pearl Computing's first data centre, which is currently under construction and targeted for completion in early 2026.
"Securing these additional data centre projects further accelerates the township's development into a thriving industrial hub, elevating its appeal to global corporations. The infrastructure development at the site is currently underway, with completion of construction targeted for 2027," it said.
Following that, SD Property said the parties will enter into a 20-year lease valued at up to RM5.6 billion, with options to renew for two additional five-year terms.
"This realises the company's SHIFT25 strategy by significantly increasing recurring income and expanding the investment and asset management segment's assets under management," it added.
SD Property group managing director Datuk Seri Azmir Merican said the presence of these data centres in Elmina Business Park enhances Selangor's attractiveness as a key digital hub for Malaysia.
"We extend our sincere gratitude to the federal government, Selangor state government, as well as the Selayang Municipal Council, Tenaga Nasional Berhad, and Air Selangor, for their invaluable support in bringing these projects to fruition," he said in the statement.