YTL Power eyes major new data centre site

YTL Power International's wholly owned subsidiary, Bukit Kerayong Industrial Venture, is set to acquire a 35% stake in Bukit Kerayong Industrial Developments Sdn Bhd (BKID). This joint venture will purchase a 1,623-acre freehold site in Bukit Kerayong from SD Guthrie for RM933.6 million. While the immediate stated purpose is to develop an integrated industrial park, TA Research suggests the possibility of incorporating data centre facilities should not be discounted.

The potential scale of data centre development on this site is considerable. TA Research estimates that if 30% of the land area is allocated for data centres, it could accommodate between two and four gigawatts (GW) of hyperscale capacity. This projection is significant, as YTL Power currently targets an aggregate data centre capacity of 2.4GW across its two existing sites. The new development could potentially more than double the group’s eventual gross data centre capacity, with its strategic location near the Kapar Energy Ventures power plant noted as an advantage.

This potential expansion aligns with YTL Power's broader strategy in digital infrastructure. MBSB Research views the Bukit Kerayong joint venture as a potential strategic milestone that could materially expand the group's long-term development pipeline. The group is already planning to upsize its Kulai data centre from 600 megawatts to 1.2GW and holds an initial 145-acre parcel at STeP West capable of up to 1.2GW, with an option for an additional 400 acres that could theoretically support another 3.3GW.