Maxland Bhd Secures Land for Data Centre in Kulim High-Tech Park
Maxland Bhd (KL:MAXLAND) is set to establish its footprint in the burgeoning data centre industry with the recent signing of a 60-year land lease agreement in the Kulim High-Tech Park (KHTP), Kedah. This strategic move aligns with Maxland’s focus on capitalising on the region’s digital transformation and growing demand for cloud services.
Details of the Land Lease Agreement
Maxland’s indirect wholly-owned subsidiary, Maxland Data Sdn Bhd (MDSB), signed the agreement with Kulim Technology Park Corp Sdn Bhd for a 4.57-acre parcel in the Industrial Zone Phase 2 of KHTP.
- Lease Price: RM9.95 million (RM50 per sq ft), payable in installments:
- 10% deposit (RM995,346): Within 14 days of signing.
- Remaining 90% (RM8.96 million): Due within six months.
- Lease Duration:
- Initial term: 60 years (Dec 15, 2024 – Dec 14, 2084).
- Optional renewal: 39 years, subject to mutual agreement and state approval.
The lease payment will be funded through a mix of internal funds and bank borrowings.
Collaboration for Growth in Digital Infrastructure
Alongside the lease agreement, MDSB signed an MOU with Global Data Centre Sdn Bhd. The partnership aims to explore opportunities in data centres, solar energy, and power plants within Malaysia.
Maxland views this as a chance to establish itself as a key player in the data centre industry, leveraging Malaysia’s:
- Strategic location in Southeast Asia.
- Government incentives for digital and green energy projects.
- Rising demand for AI-driven solutions and cloud services.
Strategic Pivot Amid Timber Sector Challenges
Historically, Maxland’s business revolved around processed wood products and shipbuilding services. However, the group faces ongoing challenges in the timber market, which accounted for 79% of its revenue in 1QFY2025.
Key financial challenges include:
- Net loss in FY2024: RM61.2 million.
- Gross loss in FY2024: RM31.5 million.
- Liabilities exceeding assets by RM69.8 million, driven by obligations totaling RM80 million to third-party creditors.
Amid these difficulties, Maxland is pursuing a debt restructuring plan while awaiting a High Court decision on a major liability.
The Case for Data Centres in Kulim
Maxland’s foray into data centres aligns with Malaysia’s vision for digital transformation:
- KHTP’s Strategic Location: Near Penang and major economic zones, facilitating cross-border tech operations.
- Data Centre Campus Design:
- Six buildings with an IT load capacity of 290 MW.
- Incorporates direct liquid cooling technology for AI workloads.
- Features energy-efficient and sustainable designs.
The first building, with a capacity of 48 MW, is expected to launch in April 2027.
Future Outlook
Despite its timber sector struggles, Maxland’s pivot toward data centres demonstrates resilience and strategic foresight. The company aims to:
- Leverage digital infrastructure growth in Southeast Asia.
- Harness government support for sustainable and green energy projects.
- Generate steady returns through long-term investments in the data centre industry.
As Maxland navigates its transformation, the successful execution of the Kulim project could mark a turning point in its corporate trajectory.
