AI land rush: DayOne's 157-acre Kapar play signals data centre shift towards Klang Valley

PETALING JAYA (July 6): Data centre operator DayOne Data Centers has been linked to a coordinated land acquisition in Kapar, Klang involving adjoining industrial parcels worth a combined RM687.89 million, underscoring continued competition for large industrial sites in Selangor.

The proposed acquisition, reported in Bursa Malaysia filings last Friday, involves freehold industrial plots being sold by three listed companies:

1) Maybulk Bhd, through subsidiary MBC Logistics Hub Sdn Bhd, disposing of a 58.03-acre parcel for RM278.05 million.

2) Eonmetall Group Bhd, through Eonmetall Land Sdn Bhd, selling a 66.03-acre plot for RM273.28 million.

3) Leader Steel Holdings Bhd, through FerroNet Asia Sdn Bhd, disposing of a 33-acre site for RM136.56 million.

The transaction prices are broadly aligned with independent valuations that assessed the land based on its "highest and best use" potential for information technology infrastructure development rather than its previous industrial use.

Expansion beyond Johor

DayOne, the Singapore-headquartered data centre operator formerly known as the international unit of GDS Holdings, has established a footprint across regional markets including Singapore, Johor, Batam (Indonesia), Greater Bangkok (Thailand), Hong Kong SAR and Tokyo (Japan).

The group has also secured financing support for projects in Malaysia, including a RM2.5 billion financing commitment from Maybank for developments linked to the Johor–Singapore Special Economic Zone.

According to the Baxtel data centre database, DayOne is using WG Malaysia VIII Sdn Bhd as the acquisition vehicle for what Baxtel described as a large-scale land consolidation exercise in Kapar. Baxtel said the acquisition of adjoining parcels from Maybulk, Eonmetall and Leader Steel would consolidate land previously designated for warehousing and logistics use into an approximately 157-acre data centre campus.

Baxtel, a common industry tracker for hyperscale and colocation infrastructure footprint, also characterised the acquisition as an expansion beyond DayOne's established Johor footprint into the Klang Valley, where the database said the site could potentially support infrastructure requirements associated with large-scale data centre operations.

Balance sheet windfall for vendors

For the Malaysian vendors, the disposal would unlock land value and strengthen balance sheets.

Eonmetall expects to record the largest net gain of approximately RM57.82 million and plans to allocate proceeds towards borrowings, working capital and future investments.

Maybulk anticipates a net gain of approximately RM30.55 million and has earmarked part of the proceeds for a special dividend of 3.5 sen per share.

Leader Steel expects a net gain of approximately RM18.39 million and plans to distribute a special dividend of 3 sen per share.

Related-party structure requires shareholder approval

The three transactions involve companies that share a common major shareholder and director, Datuk Goh Cheng Huat, resulting in the disposals being treated as related-party transactions under Bursa Malaysia requirements.

The proposals remain subject to approval from non-interested shareholders at extraordinary general meetings scheduled for July 20.

Independent advisers have deemed the proposals fair and reasonable and not detrimental to minority shareholders. Subject to shareholder approvals and fulfilment of conditions, the transactions are expected to be completed in the second half of 2026.

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