16/07/2026

Editorial T: 03-7784 6688 F: 03-7785 2625 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 E: advertise@thesundaily.com

SCAN ME

THURSDAY | JULY 16, 2026

Equinix M’sia achieves 100% renewable energy coverage

SEDA identifies 51.88 MW palm oil mill power potential KUALA LUMPUR: The Sustainable Energy Development Authority (SEDA) has identified 51.88 megawatts (MW) of potential power generation capacity from palm oil mills that could be developed in Peninsular Malaysia. Deputy Energy Transition and Water Transformation Minister Datuk Seri Abdul Rahman Mohamad said the ministry, through the Malaysia Programme Office for Power Electricity Reform Corporation, is conducting a comprehensive and phased assessment of the potential development of a nuclear energy programme for long-term electricity generation in Malaysia. “The government wishes to stress that any decision on the construction of a nuclear power plant will only be considered after all related prerequisites have been met and assessments show that the technology is safe, viable, sustainable and beneficial to the country,” he said during the question-and-answer session in the Dewan Rakyat yesterday. He was responding to a question from Rodziah Ismail (PH-Ampang) on the findings of studies into the potential of alternative low carbon energy sources, including nuclear, biomass, biogas and geothermal, to complement existing renewable energy sources such as solar and hydropower. In response to a question from Datuk Seri Tuan Ibrahim Tuan Man (PN-Kubang Kerian) on Malaysia’s biogas utilisation capacity, Abdul Rahman said only one per cent of the country’s biogas potential has been utilised so far. Abdul Rahman said SEDA Malaysia, in collaboration with the Minerals and Geoscience Department Malaysia, is also conducting a geothermal resource assessment study in Ulu Slim, Perak. However, based on the study findings, exploration drilling would be required to verify the actual capacity and feasibility of developing geothermal resources in the area. “In conclusion, the government will continue efforts to diversify low-carbon alternative energy sources and will not rely on a single source or technology to ensure energy security.” – Bernama

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

o Company explores local green power deals as part of long-term sustainability strategy

Wong said future investment decisions would increasingly depend on infrastructure readiness, particularly reliable access to electricity, water and connectivity, rather than land availability alone. She said infrastructure corridors such as the Johor-Singapore Special Economic Zone, Penang’s semiconductor ecosystem and Klang Valley transport projects are expected to continue attracting investment into industrial, logistics and mixed-use developments. Wong said structural trends such as AI adoption, supply chain diversification and ESG requirements are reshaping investment priorities, with developers placing greater emphasis on operational assets and infrastructure-supported developments. – Bernama consumption, avoiding evaporative cooling technologies and evaluating alternative water sources to align with evolving water management requirements in Johor. Equinix is targeting a power usage effectiveness (PUE) ratio of 1.33 by 2030. While Cheam did not disclose Equinix Malaysia’s current PUE and water usage effectiveness (WUE) figures, he said all of Equinix’s local data centres comply with regulatory requirements set by the authorities and the Data Centre Task Force (DCTF). “I don’t have the offhand number, but in order for us to be approved, you have to meet those numbers that they set,” he said. Cheam said its sustainability strategy aligns with Malaysia’s National Energy Transition Roadmap target of achieving a 70% renewable energy mix, water management requirements and the country’s artificial intelligence governance framework. It is reducing reliance on potable water and avoiding evaporative cooling technologies while evaluating alternative water sources, said Cheam. Equinix announced that it is investing more than US$190 million (RM800 million) in its KL2 facility in Cyberjaya. The facility will incorporate direct-to-chip liquid cooling technology designed to support high-density AI workloads while reducing electricity consumption and water use as demand for infrastructure continues to accelerate.

CYBERJAYA: Equinix Malaysia has achieved 100% renewable energy sourcing for its local operations through International Renewable Energy Certificates (I-RECs) and is exploring power purchase agreements (PPAs) with local renewable energy providers as part of its long-term sustainability strategy. Managing director Cheam Tat Inn ( pic ) said Equinix’s global operations currently achieve 96% renewable energy coverage, while Malaysia’s operations are fully covered through I-RECs. “Right now, 100% are sourcing for renewable energy through IREC, International Renewable Energy Certificate. So we are 100% covered by IREC,” he told a media briefing yesterday. While Equinix currently achieves full renewable energy coverage through I-RECs, the PPAs would allow it to diversify its renewable energy procurement strategy by sourcing electricity directly from local producers under long-term arrangements. Cheam said Equinix is currently evaluating several renewable energy providers as it explores direct renewable procurement arrangements for its Malaysian operations. “But in terms of growing responsibly within Malaysia, we are currently talking to a number of renewable energy suppliers to explore the possibilities of signing our purchase agreements with them,” he said. He said Equinix adopts a long-term approach when assessing potential renewable

and close proximity to Singapore. “I think as an industry-wide, Johor is evolving into, I would say, Johor today is kind of like the AI hub in the region,” he remarked. “So where there’s lots of hyperscale capacity, lots of AI-ready infrastructure, with very close proximity to Singapore. So that gives you the regional interconnection that you need.” “The low latency to a very established digital ecosystem in Singapore,” he added. As part of its sustainability commitments, Cheam said Equinix is reducing potable water

of Research and Consultancy Amy Wong said capital is increasingly being deployed into infrastructure backed developments, reflecting investors’ focus on long-term growth. She said data centre land accounted for the largest category of Bursa Malaysia-announced property transactions in 1H2026, followed by development and industrial land, signalling that investors are positioning themselves for future development opportunities rather than immediate income-generating assets. Of the top 10 transactions during the period, seven were land acquisitions, accounting for 76% of the combined transaction value, while five involved data centre sites across Selangor and Johor. “It’s no longer just about announcements. Operational IT capacity was 1.2 gigawatts (GW) at the energy partners given the lengthy investment cycle of the data centre industry. “So we look at the long-term aspect of the company, look at the financial strengths of the company. We look at their ability to scale, not just an immediate requirement, but ability to scale,” he said. Cheam said Equinix evaluates renewable energy providers across multiple criteria before making any commitment. “It’s not something that we would just tick all the boxes and make a decision. There’s a lot of factors we consider when we look at these companies,” he said. He noted direct renewable procurement through PPAs remains part of Equinix’s long-term plans for Malaysia. “It’s certainly in our plan to ensure that we sign off with local renewable energy providers for PPAs for our local operations,” he emphasised. Cheam said the focus on renewable energy comes as artificial intelligence rapidly reshapes demand for digital infrastructure and electricity consumption. “For Equinix, more than 80% of our deployments currently are AI related,” he added. Cheam said Johor is increasingly emerging as a regional AI hub due to its concentration of hyperscale facilities, artificial intelligence ready infrastructure

Property market to remain supported by infrastructure, specialised assets KUALA LUMPUR: Malaysia’s property market is expected to remain supported by investment activity, infrastructure development and demand for specialised assets in the second half of 2026 (2H2026). retail sector,” he said at the launch of the KFM Real Estate Highlights 1H2026 report here yesterday. end of 2025, while a further 2.9GW is expected to come onstream between 2026 and 2028,”Wong said. civil works and all the other technical infrastructure that goes into it.“

She said RM2.45 billion worth of data centre land transactions involving 568 acres were recorded in 1H2026, while RM8.8 billion in data centre related construction contracts were announced during the same period. Unlike last year, she said, contract awards are now spread across smaller packages involving substations, cabling, cooling systems, mechanical and electrical works, indicating that opportunities are expanding beyond landowners and operators to contractors and infrastructure service providers. “Instead of just landowners and operators, it is moving towards contractors who are delivering things like substations, cabling, mechanical and electrical equipment, cooling,

The report is a biannual review of industrial, hospitality, office and retail property performance in Kuala Lumpur, Penang, Johor, Sabah and Sarawak. The report noted that resilient economic fundamentals, including gross domestic product (GDP) growth of 5.4% in the first quarter of 2026 (1Q2026), stable inflation and interest rates, sustained household spending, tourism recovery and infrastructure investment, continued to support demand across the office, retail, hospitality and residential sectors. It also noted that investment in technology, digital infrastructure and manufacturing continued to underpin industrial and data centre demand. Meanwhile, KFM executive director

However, investors are becoming more selective amid global geopolitical uncertainties and evolving market conditions. Knight Frank Malaysia’s (KFM) group managing director Keith Ooi said occupier demand is increasingly shifting towards specialised assets that meet evolving business requirements. “These include cold chain, data centres and worker accommodation facilities in the industrial sector; Grade A offices, connected/transit-oriented developments and flexible workspaces in the office sector; and integrated lifestyle and retail experiences in the