KUALA LUMPUR: Development plans for the industrial component at Gerbang Nusajaya in Johor are gradually taking shape, with detailed plans now in place.
These include a 40-acre renewable energy industrial park in Precinct 2 and a 74-acre data centre (DC) campus in Precinct 4.
RHB Research anticipates strong interest from global DC players.
"We understand that additional power supply may be added in the area to support industries and investments," it said in a note.
The research firm noted that UEM Sunrise Bhd (UEMS) is well-positioned to capitalise on Johor's multiyear growth and the state's burgeoning data centre (DC) sector, thanks to its strategic presence in Iskandar Malaysia.
UEMS' collaboration with LOGOS Infrastructure Holdco (LOGOS) marks a significant move into the expanding DC segment.
Both parties have signed a memorandum of understanding to exclusively explore the development of a DC campus in Gerbang Nusajaya.
The proposed 74-acre site in Precinct 4 could potentially support up to 360 megawatts (MW) of capacity.
UEMS' potential involvement includes providing comprehensive construction management for long-term lease-built-to-suit developments, overseeing technical works, and handling government-related licensing, applications, and approvals.
"Details on the collaboration have yet to be ironed out, but we understand that UEMS may explore the possibility of holding a portfolio of DC assets for a recurring income stream, which could be very sizeable, given the capacity.
"Although the plan may be limited by its balance sheet, we think the company's upcoming non-core land monetisation could potentially bring in some financial flexibility that should help in building a DC portfolio," it said in a note.
The research firm said that although no investment figures were provided, it estimates that this 74-acre and 360-MW capacity could bring in DC investments worth RM10 billion to RM12 billion.
"The 74 acres of land alone are worth about RM260 million, based on our conservative RM80 per square foot assumption," it said.
