Sunway City Iskandar Puteri seals US$80.5 million land deal for data centres

• The investment sits in a Free Commercial Zone with a GDV of US$1.69 billion
• Estimated GDV of US$6.3 billion and 250,000 residents when fully developed

Sunway Group sealed a deal worth more than US$80.5 million (RM380 million) that will see Equalbase Pte Ltd acquire two parcels of land spanning 64 acres in Sunway City Iskandar Puteri (SCIP), Johor, for data center development.

The latest investment by Equalbase builds upon Equalbase Sunway 103°, a Sunway and Equalbase Group joint venture sitting in a Free Commercial Zone with a gross development value of US$1.69 billion (RM8 billion) for the carbon-neutral logistics hub in SCIP, Johor.

[RM1 = US$0.21]

SCIP's CEO, Gerard Soosay, said, “This disposal reaffirms Sunway's strategic vision to create value and maximize the growth potential of SCIP in Iskandar Malaysia, Johor. SCIP is strategically located just five kilometers from the second link, allowing it to leverage its close proximity to Singapore.”

“It underscores investor confidence in Johor, and our commitment to making SCIP the centerpiece of Malaysia’s southern development corridor, attracting investments from around the world. This proposed disposal will provide an opportunity to realize gains and unlock the value of Sunway’s original investment,” he added.

Meanwhile, Equalbase executive chairman, Christian Bischoff, said, “We’ve been through extensive preparation for this major milestone for our group and our partners to aggregate and secure all required components to make this project a thorough success. I am confident that we are building one of the most sustainable data centers today.”

He added that the company will integrate all critical elements within its group and, together with other companies under its group, directly controls, designs, develops, invests, and manages essential areas, such as clean energy production, battery storage systems, and new, innovative water solutions.

Johor’s strategic location in the Asia Pacific has seen the likes of large global players such as Microsoft, Nvidia and Amazon making immense investments to establish data centres to power their artificial intelligence capabilities, big data infrastructure, and cloud computing services, among others.

According to Sunway, the proposed data centers development will further propel Johor’s economic growth and add to SCIP’s vibrant ecosystem, elevating the city’s appeal to high-income professionals and global corporations looking to establish a regional headquarters.

With an estimated GDV of RM30 billion and a 250,000-strong community when fully developed, the 2,000-acre township is a sustainable and integrated city encompassing retail malls, leisure, hospitality, theme parks, hotels, commercial offices, integrated healthcare facilities, and educational institutions, among others.

The upcoming 4-kilometer Rapid Transit System Link, targeted to commence operations by the end of 2026, will further improve connectivity between Singapore and the Iskandar Malaysia region.

The proposed establishment of a Johor-Singapore Special Economic Zone will be catalytic to turbocharge economic growth in Johor and elevate Johor to be a developed state in Malaysia by 2030.