EcoWorld Launches RM1.88 Billion MTN Programme to Finance Selangor Data Centre Development

KUALA LUMPUR (Nov 13): Eco World Development Group Bhd (KL:ECOWLD) has rolled out a RM1.878 billion unrated medium-term note (MTN) programme to fund land acquisition and development works for its large-scale build-to-lease data centre project in Selangor.

In a filing on Thursday, the developer said the MTN programme was set up through Quantum Alpha Sdn Bhd (QASB), a wholly owned subsidiary responsible for driving EcoWorld’s entry into the data centre sector. The programme’s first issuance, amounting to RM3.58 million, was completed the same day.

EcoWorld added that all notes issued under the programme were fully subscribed by a major domestic financial institution, signalling robust market confidence in the developer’s credit profile and the long-term commercial potential of the data centre initiative.

Eco Business Park V to Host Google-Affiliated Data Centre Tenant

The MTN issuance supports QASB’s agreement signed in February with Pearl Computing Malaysia Sdn Bhd, an affiliate of Google, to build and lease data centre facilities at Eco Business Park V in Puncak Alam, Selangor — a corridor that has rapidly become a hotspot for data centre and high-tech investments, in line with rising demand for industrial land in Selangor.

Under the agreement:

• QASB will construct the shell and core of the data centres on 92.44 acres

• Specifications will follow Pearl Computing’s technical requirements

• Completion is targeted for 2027

• The facilities will be leased for an initial 20-year period

• Total rental income is expected to reach up to RM4.8 billion

• A 10-year renewal option is also included

Alongside this, EcoWorld previously sold 58.19 acres of industrial land within the same park to Pearl Computing for RM266.1 million, reinforcing the site’s positioning as a major digital infrastructure hub.

Potential Institutional Investors Eye Stake in Data Centre Subsidiary

EcoWorld noted that it is in ongoing discussions with institutional investors seeking to participate in the data centre development, which could see new shareholders injected into QASB. However, the group expects to maintain up to 80% ownership in the subsidiary even after equity participation.

The expansion into the digital and data centre economy complements EcoWorld’s broader strategy of strengthening its portfolio across key growth markets, including mature asset classes such as commercial property in KL, office space in Bukit Jalil, and high-demand industrial corridors in the Klang Valley like factory hubs in Puchong and industrial property in the Subang area.

EcoWorld shares closed unchanged at RM2.08 on Thursday, valuing the company at RM6.66 billion, with the counter easing slightly by almost 3% year to date.