Eco World Development Group Bhd (ECOWLD) is making a big splash in the data center market, announcing the sale of a 123.14-acre plot of industrial land in Iskandar Malaysia to Microsoft Payments (Malaysia) Sdn Bhd for RM402.3 million (US$95.2 million). This strategic move highlights the growing demand for data center facilities in Malaysia, driven by the rise of artificial intelligence and other digital technologies.
The land, which is part of EcoWorld’s Eco Business Park VI (EBP VI), was acquired by the company in September 2023 for a significantly lower price of RM12 per sq ft. This sale to Microsoft translates to a substantial profit for EcoWorld, with the selling price reaching RM75 per sq ft.
“We believe this deal will be a major catalyst for EBP VI,” said EcoWorld in a press release. “The presence of a renowned technology leader like Microsoft choosing our park will undoubtedly attract other businesses seeking to establish their data centers here.”
This land sale is not only a win for EcoWorld’s finances, but it also positions the company as a key player in the burgeoning data center market. The company joins Sime Darby Property Bhd (SIMEPROP), which recently announced a RM2 billion project to build and lease a hyperscale data center near Kuala Lumpur.
EcoWorld’s financial performance reflects this positive momentum. The company reported a 22% year-on-year increase in net profit for the financial quarter ending Jan 1, 2024, reaching RM69.63 million. Revenue also climbed by 10.9%, driven in part by strong sales in their Eco Business Parks in Iskandar Malaysia.