KUALA LUMPUR, Oct 23 — Property developer Glomac Bhd has decided to put its proposed data centre venture on hold, highlighting the need to remain prudent amid high investment costs and infrastructure constraints.
Its group managing director cum chief executive officer Datuk Seri FD Iskandar Mohamed Mansor said the group had initially planned to venture into the data centre business in 2022 as part of efforts to diversify its investment portfolio, with talks held with one local and one international partner.
“However, the plan has since been overtaken by other events,” he said during a press conference in conjunction with the company’s 41st Annual General Meeting at Menara Glomac today.
Iskandar added that while data centres have become increasingly popular in Malaysia, particularly in Johor, the group will proceed with the project only once a confirmed customer is on board.
“We have to be prudent. We must ensure there is a customer before we start building. In fact, even some companies that had signed agreements with buyers have seen those customers pull back,” he said.
Although Malaysia is emerging as a regional data centre hub, there are infrastructure challenges that must be addressed first.
“There are certain challenges involving power and water supply in Johor, for example. Even in our own housing developments, we are facing difficulties in getting a water supply there,” said Iskandar.
As a result of Glomac’s shift in plans, one of the two land parcels previously designated for data centre use has since been repurposed for commercial development, given the strong market demand for landed and commercial properties over the past year.
“Three or four years ago, the demand for shop houses was very low. However, over the last one year, the demand for two and three-storey shop offices has been very strong,” he said.
Iskandar noted that Glomac remains open to revisiting the data centre plan at a suitable opportunity in the future.
The group’s main focus remains on maximising occupancy and returns from its existing developments before venturing into new large-scale investments.
