Planter sees Malaysia gaining data centre interest amid Iran war
SD Guthrie is pursuing industrial uses for some plantation land, but its chief executive says power constraints need attention.
The US-Iran war could steer more data centre investors towards Malaysia, SD Guthrie chief executive Mohd Haris Mohd Arshad said, as the palm oil producer seeks to develop industrial businesses on its land.
In an Oct 23 interview, Haris said the conflict had made the Middle East riskier for investors, despite its appeal as a location with abundant energy. Google, Amazon and Microsoft were already investing in Malaysian data centres before hostilities began.
SD Guthrie owns over 210,000 hectares of freehold land and is Malaysia’s biggest landowner. It has set aside roughly 10 per cent of its existing landbank for industrial projects and renewable energy assets. Haris expects industrial development to contribute a third of company revenue by the decade’s end.
Johor is the intended destination for a large portion of Malaysia’s data centre investment. Haris cautioned that electricity constraints must be resolved to realise the region’s potential, with additional power generation needed for the industry to grow.
Officials say data centre agreements with Tenaga Nasional provide for peak demand reaching 8.77 gigawatts, equivalent to nearly one-third of installed capacity in 2025. Separately, Fitch Solutions company BMI estimates that facilities in Johor could account for up to 23 per cent of the energy supplied in Peninsular Malaysia by 2031.
