KUALA LUMPUR: YTL Power International Bhd is planning to develop a new gigawatt data centre campus in Johor with a state-owned firm, according to a statement reported by The Edge Malaysia. The project will be located within Sedenak Tech Park West and will sit on 145 acres of land to be acquired by the group's unit SIPP Power Sdn Bhd from JLand Group.
SIPP Power also holds an option to acquire up to a further 400 acres, which would allow the campus to expand to 545 acres in total. YTL Power owns 70% of SIPP Power, while the remaining 30% is held by SIPP Energy Sdn Bhd, whose controlling shareholder is Datuk Daing A Malek Daing A Rahman, a former Kota Tinggi Umno division chief.
JLand Group is the property arm of Johor Corporation and manages more than RM25 billion in assets on behalf of the Johor state government. It is also the master developer of Ibrahim Technopolis, the wider development that covers Sedenak Tech Park West, where the new campus is to be built. The group is therefore both the landlord and the master developer for the area.
From 600MW to 1,000MW at Kulai
YTL Power had contracted 298MW of data centre capacity as of March 2026 and plans to raise capacity at its Kulai campus from 600MW to 1,000MW. The campus carries the AI infrastructure the group is building with Nvidia, a partnership first announced in December 2023 that uses Nvidia H100 Tensor Core GPUs. The campus also carries the group's AI cloud business.
YTL AI Cloud was established in March 2024, with plans to deploy Nvidia Grace Blackwell technology. The group was among the first companies to adopt Nvidia's GB200 NVL72 liquid-cooled rack system, a design that places more compute in each rack than earlier generations and requires different cooling and power arrangements on site. That design also changes how much water and power a campus needs.
- New campus planned at Sedenak Tech Park West
- 145 acres to be acquired from JLand Group
- Option over a further 400 acres
- Potential footprint of 545 acres
- YTL Power holds 70% of SIPP Power
What the market is pricing in
RHB Investment Bank said in July 2026 that the group is exploring an initial public offering of its data centre business in 2027. The bank valued the non-AI data centre operations at about RM28 billion, or RM3.06 per share, giving investors a way to separate the AI infrastructure from the rest of the group's data centre portfolio.
YTL Power shares closed two sen or 0.4% lower at RM4.88 on the day before the announcement, giving the group a market capitalisation of RM42.57 billion. The stock has gained more than 46% so far this year, a move that reflects how much of the market's attention now sits on the group's data centre and AI plans.
KUALA LUMPUR (Aug 19): YTL Power International Bhd (KL:YTLPOWR) is planning to develop a new gigawatt data centre campus in Johor with a state-owned firm.
A gigawatt is 1,000MW of capacity, roughly the scale YTL Power is already targeting at Kulai. A campus of that size in Sedenak would therefore be a second site of comparable ambition, developed with a state-linked partner rather than on the group's own balance sheet alone. For an operator of this size, land and power decide how quickly such a campus can be built.
The project will be located within Sedenak Tech Park West and sit on a 145-acre land to be acquired by YTL Power's unit SIPP Power Sdn Bhd from JLand Group, according to a statement.
Why the state partner matters
JLand Group's role reflects the way industrial land in Johor is often assembled, with state-linked companies holding and releasing parcels for development. Working with such an entity can ease the path to land, power, water and planning approvals, which are the constraints that decide how quickly a campus of this size can be built. It also means the state has a direct interest in how the land is used.
- Gigawatt-scale campus planned in Johor
- Land to be acquired from Johor Corporation's property arm
- Option to expand the site to 545 acres
- Kulai campus to grow from 600MW to 1,000MW
The group's existing data centre business is already large enough that an IPO is being explored for 2027. A new campus of this scale would extend a pipeline that includes AI infrastructure built with Nvidia, and it would sit in a technology park managed by the state's property arm. The Kulai campus remains the group's operational base.
What it means for Malaysia's cloud market
For Malaysia, the plan shows that state-linked development companies are now participants in the data centre build-out, not only landlords. It also shows that AI-oriented capacity is being planned at a scale that requires land, power and capital well beyond a single campus, and Johor remains at the centre of that activity. The announcement also shows how much of the national pipeline now depends on state-level decisions.
Whether the full 545 acres is developed will depend on demand, power availability and the terms agreed with the state partner. The Kulai campus remains the reference point, since it carries the Nvidia partnership, the AI cloud business and the capacity that has already been contracted. The Sedenak plan would be the second site built on that model.
For the wider Malaysian market, the announcement extends a pipeline that is now measured in gigawatts rather than megawatts, and it keeps the state's technology parks at the centre of that build-out. Investors will be watching how the land is developed, when the first capacity comes online, and how far the state's industrial policy has moved beyond land sales.
Source: The Edge Malaysia
