Silver Ridge’s Cyberjaya data centre project falls through as PKNS unit exits JV

• The Cyberjaya data centre project was first announced in March 2024, when SR Total entered into a JV agreement with SIC to establish three JV companies. Under the plan, SR Total was to hold an 80% stake, while SIC would hold the remaining 20% in the companies.

KUALA LUMPUR (Aug 19): Telecommunications services provider Silver Ridge Holdings Bhd’s (KL:SRIDGE) plan to build six data centres in Cyberjaya has collapsed after its joint venture partner, Selangor Industrial Corporation Sdn Bhd (SIC), a Perbadanan Kemajuan Negeri Selangor (PKNS) unit, withdrew from the deal.

The project was to be developed on an eight-acre site in Cyberjaya owned by PKNS.

Silver Ridge in a filing with the bourse said its unit, SR Total Digital Sdn Bhd, received notice of SIC’s withdrawal from the joint venture. SIC pulled out, saying it couldn’t get the required lease approvals, board resolution, or power of attorney from PKNS for the eight-acre land.

The Cyberjaya data centre project was first announced in March 2024, when SR Total entered into a JV agreement with SIC to establish three JV companies. Under the plan, SR Total was to hold an 80% stake, while SIC would hold the remaining 20% in the companies.

Under the agreement, SIC’s role was to secure PKNS’ approval for the project and a limited power of attorney for the land to allow submission of the development order for the first data centre.

SIC also was to secure a lease of at least 60 years from PKNS and sub-lease it to the JV companies.

SR Total was to build, operate and maintain the data centre campuses.

The joint venture with SIC was to help Silver Ridge tap into the growing data centre market and create new revenue. Its long-term plan was to grow the business and improve Silver Ridge’s financial performance.

For the nine months ended March 31, 2025, Silver Ridge's net profit jumped to RM2.7 million from RM24,000 a year earlier, driven by new contracts in telecommunications, IT solutions and construction. Revenue rose 45% to RM33.5 million.

Silver Ridge’s shares have been on a downtrend since March, down more than 57% year to date. The stock ended Tuesday unchanged at 19 sen, valuing the group at RM55.28 million.

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