Malaysia’s national public sector pension fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP) is expected to commit up to MYR 190 million ($47.38 million) of capital in Lestari Cooling Energy Sdn. Bhd.
KJTS Group Berhad (KJTS), a provider of energy-efficient cooling solutions and integrated energy management services based in Malaysia, and Stonepeak, an alternative investment firm specializing in infrastructure and real assets, announced Wednesday the addition of KWAP as an investor in their district cooling joint venture platform.
The funding will strengthens Lestari Cooling Energy’s profile and enhances the company’s strategy to invest in and develop diversified district cooling and electricity distribution assets predominantly in Malaysia.
It is noted that district cooling systems are globally recognized as the gold standard for efficiency, capable of reducing total energy consumption by up to 50 percent and offer a lower carbon dioxide (CO2) footprint compared to other traditional cooling methods.
This is critical in Southeast Asia, particularly in Malaysia, where demand continues to grow amid industrial urbanization, energy efficiency initiatives, and rapid data center development.
KWAP’s investment, channeled through Malaysia’s first climate-focused initiative, Dana Iklim+, marks a pivotal step in the nation’s energy transition.
Lestari Cooling Energy directly supports the National Energy Transition Roadmap (NETR) by enabling energy efficiency at scale.
With the backing of KJTS, Stonepeak and KWAP, Lestari Cooling Energy said it is well-positioned to accelerate the deployment of high-efficiency cooling infrastructure to support national carbon reduction ambitions and long-term urban development.
As previously announced, the joint venture is expected to be capitalized at up to MYR 1.5 billion ($380 million) through aggregate commitments and debt funding, targeting an actionable and growing pipeline of district cooling projects.
At full deployment, the company is expected to generate savings of over 70,000 tCO2 emissions per annum.
Beyond its environmental benefits, Lestari Cooling Energy provides a cost-effective and scalable pathway for local businesses and building owners to mitigate rising electricity costs, a key operational challenge.
This dual impact of sustainability and economic resilience aligns with KWAP’s commitment under the Ministry of Finance’s GEAR-uP program to catalyze growth in key economic sectors and empower local companies.
“We are pleased to have KWAP as an investor in Lestari Cooling Energy as we continue to scale our district cooling business,
“The combination of Stonepeak’s global infrastructure expertise, KWAP’s strong domestic institutional presence and KJTS’ operational capabilities position the partnership well to deliver dependable, long-term cooling infrastructure aligned with Malaysia’s sustainability and energy transformation objectives,” said Azura Binti Azman, Independent Non-Executive Chairman of KJTS.
Hajir Naghdy, Senior Managing Director and Head of Asia and the Middle East at Stonepeak, added the continued growth of Lestari Cooling Energy reflects the importance of district cooling as critical infrastructure in Malaysia and the strong opportunity set for the company.
“We are excited to continue expanding the Lestari Cooling Energy platform in partnership with KWAP and KJTS to support Malaysia’s growing energy needs,” he added.