Khazanah Nasional Bhd.’s infrastructure arm, UEM Group Bhd., plans to leverage its extensive landbank in Johor to support the rapid expansion of data centres by providing clean energy and industrial land, said managing director Datuk Amran Hafiz Affifudin.
Johor — which is jointly developing a new special economic zone with neighbouring Singapore — has drawn RM164.45 billion in data centre investments as of the second quarter. The state is projected to host about 60% of Malaysia’s data centres by 2030.
This outlook positions UEM favourably, as its property arm, UEM Sunrise Bhd., holds nearly 4,600 acres in the state. Sunrise is finalising plans for the 40-acre Gerbang Nusajaya Industrial Park, a renewable energy-powered development, Amran said in an interview in Kuala Lumpur on Tuesday.
Meanwhile, UEM’s green energy subsidiary, UEM Lestra Bhd., is preparing to begin construction on a 1-gigawatt hybrid solar plant backed by investors including units of I Squared Capital Advisors and Macquarie Group. The first phase, covering 500 megawatts and valued at RM2.5 billion, was announced earlier this year.
UEM Group Bhd managing director Datuk Amran Hafiz Affifudin.
UEM is also exploring investments in water treatment facilities for industrial parks — a key requirement for meeting the cooling needs of data centres. “This complements our energy supply plans,” Amran said. “Even without data centres, industrial developments alone create substantial demand for water and power.”
According to BMI, a Fitch Solutions company, Malaysia ranks among Asia’s top three growth markets, with the ongoing data centre boom expected to drive a significant increase in power demand through 2028. However, the rapid expansion is putting pressure on the nation’s land and grid capacity. “Meeting this demand with clean power is becoming more challenging — yet increasingly vital as renewable-matching commitments are now central to data centre operators’ business strategies,” BMI noted.
Green Pivot
Traditionally focused on property and infrastructure, UEM is now steering toward green energy and sustainability as part of its long-term growth strategy.
Last year, Lestra acquired a majority stake in Nur Power, Malaysia’s only independent power utility, for an undisclosed sum and pledged RM1.5 billion to decarbonise industrial parks nationwide by 2026.
Lestra currently supplies biogas power to the Kulim Hi-Tech Park in Kedah — home to global semiconductor and electronics manufacturers including Infineon Technologies AG and AT&S. The park’s 350-megawatt biogas facility is fully subscribed.
“We can repower the plant to reach up to 1 gigawatt if regulators permit,” Amran said, adding that Lestra is also open to selling biogas power to other industrial zones via the national grid.
Amran said the group expects stronger profitability in 2025, driven by higher contributions from UEM Sunrise and other subsidiaries, with further growth anticipated in 2026 based on the group’s deal pipeline.
UEM reported a pre-tax profit of RM923 million last year — nearly tripling from the previous year — with a debt-to-equity ratio just below 40%. “That gives us significant headroom for expansion,” Amran said.
The group currently has two listed subsidiaries — UEM Sunrise and UEM Edgenta Bhd., its asset and facility management arm — and is considering future listings of other units “when the timing is right,” he added.
