Sunway Construction Sdn Bhd (SCSB) has officially accepted the Letter of Initial Appointment (LOIA) issued by K2 Strategic Infrastructure Malaysia Sdn Bhd, marking the commencement of a data center development project in Johor with an estimated value of RM 192.88 million.
According to a statement filed with Bursa Malaysia, SunCon has confirmed that the contract covers all associated taxes and levies related to the LOIA scope of work. The project’s timeline is set at approximately 13 months, beginning in October 2022, with an expected completion date in November 2024.
SunCon has also clarified that the LOIA’s execution will not have any immediate impact on the company’s share capital, substantial shareholders’ ownership, or any significant effects on earnings per share, net assets per share, and gearing for SunCon’s financial year ending on December 31, 2023.
However, barring any unforeseen events, the LOIA is anticipated to make a positive contribution to SunCon’s earnings from December 31, 2023, and beyond.
Johor is set to attract RM17 billion (US$3.8b) in new data center investments in 2024 from various industry players.
Earlier this year, AirTrunk has announced its entry into Malaysia with plans to develop a 150+MW data center named AirTrunk JHB1 (JHB1) in Johor which will be the company’s first in Malaysia and ninth in APJ, taking its data center platform to over 1.35GW of capacity.
In April, MN Holdings Bhd also announced its partnership with China’s Shanghai DC-Science Co Ltd to work together on building a high performance data center in Johor which has been planned to include a 12,000-rack facility supported by a power load of 120MW, and dual power supply.
In July, Singtel also announced its plans to establish an environmentally sustainable data center campus in Johor, utilizing green technology.
The data center market in Malaysia is expected to grow at a CAGR of 9.41% during the 2022-2028 period. Malaysia is among the hubs for data centers in Southeast Asia due to its strategic location, political stability, and growing digital economy. Malaysia has a well-established telecommunications infrastructure with several undersea cables that provide high-speed internet connectivity to other countries in the region.
