AREA Real Estate Advisory completes feasibility study of industrial land at Delapan SBEZ

• The site has been selected to be developed into a hyperscale data centre park called the AREA Data Centre Campus (ADCC).

KUALA LUMPUR (Oct 19): AREA Real Estate Advisory Sdn Bhd has completed a commissioned feasibility study to assess the viability of a freehold industrial site located at the Delapan Special Border Economic Zone (Delapan SBEZ). The site has been selected to be developed into a hyperscale data centre park called the AREA Data Centre Campus (ADCC).

Featuring a free commercial and industrial zone, the 4,400-acre Delapan SBEZ is located at the northern end of the North–South Expressway and Malaysia Federal Route 1, near the border crossing to Thailand.

As part of the larger Delapan SBEZ, the 156-acre site of ADCC is located at the Delapan East Zone 1. The green data centre hub has a gross development value of RM15 billion.

According to a statement issued on Thursday (Oct 19), the feasibility study confirmed that the ADCC site has an appropriate ecosystem to facilitate hyper-scale data center development and operations, including physical site and infrastructure readiness, location and accessibility.

While the site is now energised by a power substation located at Bukit Kayu Hitam 3km away, a 132KV Transmission Main Intake (PMU) is currently being built by Tenaga Nasional Bhd to supply for the entire Delapan SBEZ site, with an additional 275KV PMU earmarked to be built thereafter.

“The Delapan development will also provide clients with access to the Thai and Malaysian markets with fibre connectivity to both East and West Asian clients,” said AREA Real Estate Advisory chairman Datuk Stewart LaBrooy, adding that the site has the access to both the Satun-Songkhla Cable Landing Stations (CLS) in southern Thailand and the northern CLS in Penang.

To further cater to data centres, an internet exchange (IX) is due to be operational in the first quarter of 2025 (1Q2025) and the site has more than 60 million litres of water supply per day.

The statement also stated that the combination of 12 CLS, numerous telco points of presence (POPs) and an upcoming IX allows good network availability, network diversity and network density with a low network latency.

“The fibre and network connectivity at the ADCC has competitive advantage as a regional interconnect point from West (India, Middle East, and Europe), East (Hong Kong, Japan, and Taiwan) as well as North (SE Asia and China) to South (Singapore, Indonesia, and Australia),” it stated.

The report also concluded that ADCC is a safe distance away from the nearest airport and railway station, while still well connected to the air, road and rail transportation hubs via existing multiple road networks.

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