Paragon Globe Berhad (PGB), a Malaysian property developer, is selling two parcels of land in Johor to DayOne Data Centers Malaysia III Sdn Bhd (DDCM), a subsidiary of DayOne, for RM 398.11 million (US$ 96.6 million) in cash. DDCM intends to build a data center on this land.
Per a Bursa Malaysia filing, PGB’s wholly-owned subsidiary PGB Landmark Sdn Bhd (PLSB) entered into a conditional sale and purchase agreement with DDCM earlier this week.
For that money, DDCM will acquire around 26 hectares of land in Tanjung Kupang, Johor. The purchase of this land would complement DayOne’s existing operations in Johor where it runs two facilities at Nusajaya Tech Park and Kempas Tech Park offering around 120MW of capacity.
However, the land in question is currently zoned for agricultural use and converting it and getting a permit to establish a data center is a key part of the agreement. Further to that, PLSB will also carry out infrastructure works on the site at its cost, in accordance with specifications outlined by DayOne.
Payment will be dispersed in eight tranches based on reaching development milestones. One of these milestones is approval from the Malaysian government’s Data Centre Task Force. Early site access, land-use conversion, and the issuance of new titles will also trigger payments as part of the agreement.
The deal is PGB’s second data center land sale in the pipeline. In May 2024, the developer entered a conditional agreement to sell 19.36 hectares in Plentong to Bridge Data Centres Malaysia IV for RM238.32 million. That deal is expected to be completed in H2 2026.
PGB said in the Bursa filing that proceeds from the sale will go toward funding ongoing projects, the site’s infrastructure works, new land acquisitions, partial repayment of bank borrowings, and working capital.
The purchase of this land falls in line with a commitment DayOne made earlier this year to invest a cumulative RM28 billion (US$ 6.96 billion) into Malaysia by the end of 2026. That figure includes doubling its workforce in the country.
PGB needs shareholder approval to push this agreement through and will hold an extraordinary general meeting for that purpose. The agreement is expected to be finalized by H2 2027.