SD Guthrie Bhd is developing a green-energy industrial park in Johor, Malaysia, to tap into the region’s growing data center sector.

The world’s largest oil palm planter, with 340,000 hectares in Malaysia, plans to allocate about 10,000 hectares over the next decade for solar-powered industrial parks.

The company is in talks with partners for its Kulai project, with more details expected in the coming months.

Last year, SD Guthrie signed a memorandum of understanding with AME Elite Consortium to jointly develop a 641-acre green industrial park in the Johor-Singapore Special Economic Zone.

The firm also recently partnered with Gamuda Bhd to develop, own, and operate solar power assets targeting 1.2 gigawatts, with its first plant in Kedah expected to start operations later this year.

Johor has attracted over 164 billion ringgit (US$39 billion) in data center investments in the past four years, including funds from Microsoft, Nvidia, and DayOne Data Centers Singapore.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Malaysia’s data center boom creates massive land conversion opportunity

SD Guthrie’s pivot from palm oil plantations to industrial parks reflects the significant growth in Malaysia’s data center market.

The country recorded MYR 141.7 billion (USD 31.6 billion) in digital infrastructure investments, more than tripling the previous year’s total, with Johor alone attracting over 164 billion ringgit ($39 billion) in data center investments over just four years21.

This demand surge coincides with Malaysia’s data center market projection to grow from USD 1.2 billion in 2017 to USD 3.2 billion by 2030, representing a 14% annual growth rate3.

For plantation companies like SD Guthrie, which controls 340,000 hectares across Malaysia, this represents a strategic opportunity to convert lower-yielding agricultural land into higher-value industrial real estate1.

The company plans to allocate 10,000 hectares over the next decade for industrial park development, expecting these new businesses to comprise 30% of its bottom line by 20301.

2️⃣ Plantation companies gain competitive edge through integrated renewable energy strategy

SD Guthrie’s approach of powering industrial parks with solar farms built on remote lands demonstrates how plantation companies can leverage their extensive land holdings for energy generation.