Malaysian property developer Sime Darby Property said Thursday that it has partnered with Pearl Computing Malaysia Sdn Bhd, a wholly-owned subsidiary of a multinational technology company, to develop a hyperscale data center for a multinational tech firm with a lease value of MYR 2 billion ($424 million).

Sime Darby Property said in a statement that the data center will be located on an approximately 49-acre site within Sime Darby Property’s 1,500-acre Elmina Business Park, a freehold industrial park in Klang Valley.

The project is set to break ground in the second quarter of 2024, with construction completion targeted for 2026.

In developing this asset, the group will manage the design and development, infrastructure planning, and construction management, ensuring successful delivery of the facility customized to the multinational technology company’s specifications.

Following completion of construction, the parties will enter into a 20-year lease valued at up to MYR 2 billion ($424 million), with options to renew for two additional five-year terms.

“We are excited to embark on our maiden entry into the data center segment, which is rapidly emerging as an important asset class within real estate for which we are well-positioned to expand into,

“This project allows us to broaden our investment and asset management portfolio, aligning with our SHIFT25 strategy to grow recurring income,” said Azmir Merican, Sime Darby Property’s Group Managing Director.

According to him, this facility will elevate Elmina Business Park’s status as a premier industrial location for technology corporations, both local and international.

“This achievement reflects the effort invested in its realization,

“We would also like to acknowledge local municipal authorities, government agencies, and utility providers who have supported us, as their contributions have been instrumental in advancing this project, which is of national significance,” he added.

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