The rush to develop data centre infrastructure in Malaysia continues with Tien Wah Press Holdings saying that its joint venture (JV) with Singapore-listed property developer Lum Chang Holdings is entering the data centre business to tap into the growing demand for such infrastructure.
Tien Wah’s principal activity to date has been investment holding and, through subsidiaries and associate companies, printing.
According to a filing with the Singapore stock exchange, the JV company, called Lum Chang Tien Wah Property (LCTWP), has signed an agreement with a Malaysian data centre operator called MyTelehaus to develop, own, lease and operate a data centre on 1.61 acres of the 3.22 acres of land owned by LCTWP in Section 13, Petaling Jaya, Selangor, located to the west of Malaysia's capital, Kuala Lumpur.
The website Data Centre Dynamics reports that, under the agreement, LCTWP will be responsible for constructing the core and shell of the data centre, and MyTelehaus will manage matters relating to the design, build and fund of the supply, installation and fit-out, testing, and commissioning of the mechanical and electrical portion of the data centre.
LCTWP will then lease the land and completed core and shell to MyTelehaus for 30 years under a formal lease agreement. Revenue generated from leasing and operating the data centre will be shared based on each party’s capital expenditure for each phase.
This may be a first for Lum Chang, one of Singapore’s largest construction and property management companies. However, details about this, or indeed about the facility’s capacity and construction timeline, have not yet been made available.
That said, news service The Edge Malysia, quotes Tien Wah as saying that the development aligns with LCTWP’s long-term strategy of optimising the value of its land assets, supported by growing demand for data centre infrastructure, suitable zoning, power availability and the strategic location of the site.
It adds that the venture also allows LCTWP to collaborate with MyTelehaus, described as an established partner in Malaysia’s fast-growing data centre sector, while retaining ownership of the land and the building.
