Sime Darby Property has announced that it is to sell land to Google in Elmina Business Park near Kuala Lumpur, in Klang Valley for the construction of the latter’s second data center in the country. This recent decision forms part of a collaborative engagement between the two entities as an extension of a similar transaction agreed in 2024 for the first data center location.

This project includes Sime’s subsidiary, SDP EBP II, which will develop and lease data center facilities with its associated infrastructure to Pearl Computing Malaysia Sdn. Bhd., which is a wholly-owned subsidiary of Raiden APAC Pte. Ltd. The land lease deal involves a 77-acre plot at Elmina Business Park Phase 2. It is expected to be ready by the end of 2027. The lease has a tenure of 20 years with the option for two five-year renewals. It is expected to generate an initial rental sum of RM5.6 billion, or roughly $1.25 billion.

The agreement comes after an earlier deal between Sime Darby and Pearl Computing, where a 49-acre site in Elmina Business Park was allocated for the first data center due to completion in 2026. First, Pearl Computing was identified as a subsidiary of an unnamed US-based technology giant confirmed to be Google. In addition to data centers, Google is investing in an expansion of its cloud region in Malaysia as part of a broader $2 billion initiative the company announced in 2022.

A publicly traded company since 2007, Sime Darby Property is traceable back to United Estates Projects Berhad established in 1964. In its latest deal with Google, the firm continues to solidify growing participation in developing data center infrastructure that falls in step with global trends for investments in cloud computing and digital infrastructure within the region.