Infrastructure & PPPs in Malaysia - Q2 2026 Update

YOG INFRA
8 hours ago
11 min read

MALAYSIA is rapidly advancing its infrastructure landscape through strong investments in digital infrastructure, renewable energy, transport, aviation, and logistics, supported by public investment, private capital, and Public-Private Partnership (PPP) models. Major investments include USD 3 billion hyperscale data centre developments by AirTrunk, USD 2.6 billion airport modernisation, large-scale solar, floating solar, battery energy storage systems (BESS), and waste-to-energy projects. The country is also expanding urban transport and logistics infrastructure, reinforcing Malaysia's position as a regional hub for digital infrastructure, clean energy, and sustainable economic growth.

Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight for the country.

APRIL 2026

MALAYSIA CONSORTIUM WON USD 486 MN DEAL TO BUILD FLOATING SOLAR PLANT

The consortium formed by Sunview Group Bhd, which includes its subsidiary Fabulous Sunview and Cypark Renewable Energy, has secured a contract from TNB Power Generation (TNB Genco) for a solar energy project worth USD 486.29 Mn. The consortium will work on a 595-megawatt alternating current (MWac) floating solar photovoltaic plant, along with a battery energy storage system at Kenyir Lake, Terengganu, Malaysia.

Consortium Cre-Sunview is an unincorporated joint venture in which Cypark Renewable Energy and Fabulous Sunview have 60% and 40%, respectively. Meanwhile, TNB Genco is a wholly owned subsidiary of Tenaga Nasional Bhd. Construction is scheduled to start in Q2-2026, with a target completion in Q3-2028.

MALAYSIA TO BUILD 18 WASTE-TO-ENERGY PLANTS UNDER RENEWABLE ENERGY PUSH

Malaysia plans to build 18 waste-to-energy plants nationwide, expected to generate up to 600 megawatts (MW) of renewable energy by 2040, as part of efforts to strengthen Malaysia's renewable energy capacity and solid waste management system.

This initiative supports the target under the National Energy Transition Roadmap (NETR), which aims for 70% renewable energy capacity by 2050. The RM 660 Mn (USD 163 Mn) Waste-to-Energy (WtE) plant in Sungai Udang, Melaka, is set to become fully operational by 2029. It will process up to 1,000 tonnes of solid waste per day and generate up to 22 megawatts (MW) of electricity under a 34-year concession. The implementation of this long-term project will strengthen the nation's renewable energy agenda while helping reduce energy dependency amid the global energy crisis.

MAY 2026

AIRTRUNK TO INVEST USD 3 BN IN HYPERSCALE DATA CENTRES IN MALAYSIA

AirTrunk has announced plans to invest approximately USD 3 Bn to develop two new hyperscale data centre campuses in Johor Bahru, significantly expanding its digital infrastructure footprint in Southeast Asia.

The new facilities, referred to as JHB3 and JHB4, will be located in Iskandar Puteri, close to the company’s existing campuses. Together, they will add more than 280 MW of IT capacity, designed to support high-density cloud computing and artificial intelligence workloads. Once completed, AirTrunk will operate four data centre campuses in Malaysia with a combined capacity exceeding 700 MW, bringing its total investment in the country to around USD 6.8 Bn.

The expansion reflects strong regional demand for digital infrastructure driven by rapid growth in cloud services and AI applications. The facilities are also expected to incorporate energy-efficient technologies, including advanced cooling systems using recycled water, aligning with sustainability goals.

UKAS SET TO AWARD JOHOR BAHRU ART PROJECT TO DOM–MMC CONSORTIUM

Malaysia’s Public Private Partnership Unit (Ukas) is expected to award the Johor Bahru rapid transit project to a consortium led by DOM Industries (M) Sdn Bhd and MMC Corporation Berhad.

The project, estimated at nearly RM 7 Bn (USD 1.78 Bn), will be developed as a Public-Private Partnership (PPP) model and is expected to adopt an elevated autonomous rapid transit (ART) or automated people mover system. Other consortium members reportedly include Nylex Malaysia Berhad and BTS Group Holdings, with the latter providing technical expertise.

The Johor Bahru ART system is considered a key urban mobility project aimed at reducing congestion and improving connectivity within the city. It is also expected to complement the upcoming Johor Bahru–Singapore Rapid Transit System, which will significantly increase cross-border passenger flows.

Once operational, the ART system will play a critical role in distributing passengers arriving at Bukit Chagar station, where the RTS is projected to handle up to 10,000 passengers per hour per direction. The project has been under evaluation for over a year, with multiple consortiums competing for the contract.

ANN JOO UNIT BAGS USD 9.43 MN CONTRACTS FOR BATTERY ENERGY STORAGE SYSTEM FACILITY IN KEDAH

ANN Joo Resources Bhd. has secured a RM 37.4 Mn (USD 9.43 Mn) contract for a battery energy storage system (BESS) project in Bukit Kayu Hitam, Kedah. The contract was awarded to its indirect wholly owned unit, IAC Infrastructure Sdn Bhd, by Universal Peak Sdn Bhd, which is part of a consortium with Blueleaf Energy selected by the Energy Commission to develop the project.

In a Bursa Malaysia filing, the scope includes the design, engineering, procurement, construction, installation, and testing of a 100MW/400MWh utility-scale BESS facility, along with related civil, mechanical, and electrical works. The project falls under the Energy Commission’s Malaysia Battery Energy Storage System (MyBeST) program, aimed at strengthening the national grid and supporting the transition towards a low-carbon energy system.

TNB UNIT RAISES USD 267.68 MN VIA ASEAN GREEN SUKUK

Tenaga Nasional Berhad’s wholly-owned unit, TNB Kuala Muda Solar Sdn Bhd (TNBKMS), has successfully raised RM 1.05 Bn (USD 267.68 Mn) through the issuance of an ASEAN Green Sustainable and Responsible Investment (SRI) Sukuk Wakalah. TNB proceeds raised from the sukuk issuance will support the development of a large-scale solar photovoltaic (LSS PV) project in Kuala Muda, Sungai Petani, Kedah.

TNBKMS is responsible for undertaking the full scope of the project, including the design, engineering, procurement, construction, installation, testing and commissioning of the solar facility, as well as the ownership, operation and long-term maintenance of the plant and its related ancillary equipment and facilities.

The solar project will have an installed generation capacity of 500MWac, making it one of the key renewable energy initiatives under TNB’s sustainability and energy transition agenda. The sukuk issuance was carried out in 17 tranches under the Asean Green SRI Sukuk Wakalah programme. TNBKMS is a wholly owned subsidiary of TNB Renewables Sdn Bhd, which is in turn fully owned by TNB. The issuance reflects TNB’s continued commitment towards expanding its renewable energy portfolio and supporting Malaysia’s transition towards cleaner and more sustainable energy sources.

AUSTRALIA'S NEXTDC LAUNCHES USD 720 MN DATA CENTER IN MALAYSIA

NEXTDC Limited, an Australia-based digital infrastructure provider, has announced the official launch of KL1 Kuala Lumpur, its first international data center with USD 720 Mn, establishing a strategic platform to support the rapid growth of artificial intelligence (AI), cloud computing, and digital services across Southeast Asia.

Located in the Klang Valley, Malaysia’s primary business and technology hub, KL1 represents long-term investment and marks a significant milestone in NEXTDC’s evolution from a national digital infrastructure provider to a regional leader for mission-critical infrastructure platforms.

Purpose-built to support the next generation of AI and high-performance computing, KL1 Kuala Lumpur has been designed to deliver 65 MW of IT capacity and incorporates NEXTDC’s globally recognized Tier IV design principles, with KL1 Kuala Lumpur set to become the first Uptime Institute Tier IV-certified data center in Peninsular Malaysia. The facility supports the high-density, always-on environments required for AI and advanced digital workloads.

As demand for AI accelerates, organizations are increasingly navigating the challenge of scaling technology at speed while maintaining control, resilience, and governance. KL1 Kuala Lumpur has been engineered to address this shift, providing a secure, high-performance environment where organizations can scale AI capabilities while maintaining operational certainty and sovereign compliance.

NEXTDC’s expansion into Malaysia also strengthens the broader Australia–Asia digital corridor, enabling Australian organizations to expand their operations in the region with a trusted infrastructure partner, while reinforcing Australia’s position as an exporter of high-performance, sovereign-grade digital infrastructure capability.

JKR SARAWAK TASKED WITH 267 PROJECTS WORTH RM 31.3 BN UNDER 13MP

The Sarawak Public Works Department (JKR Sarawak) has been entrusted with implementing 267 development projects worth RM 31.30 Bn (USD 7.89 Bn) under the 13th Malaysia Plan (13MP), further advancing the state’s infrastructure and connectivity agenda.

In total, 172 are road projects, 37 bridges, 40 buildings, 14 riverine structures, and four airports. To date, 74 projects worth RM 4.8 Bn (USD 1.21 Bn) have been fully completed, while another 124 projects worth RM 20.3 Bn (USD 5.12 Bn) are currently under construction. In addition, 24 projects worth RM 4.1 Bn (USD 1.03 Bn) are at the tender stage, while another 45 projects valued at RM 2.1 Bn (USD 529.63 Mn) are at the pre-contract stage.

ALLY LOGISTIC PROPERTY LAUNCHES USD 127 MN SMART COLD CHAIN HUB IN SHAH ALAM

Ally Logistic Property (ALP) has launched a RM 500 Mn (USD 127 Mn) smart cold chain facility in Shah Alam, marking Malaysia’s first developer-built multi-story automated storage and retrieval system (AS/RS) cold storage project.

The development, OMEGA 2 Shah Alam, sits on a nine-acre site in southern Selangor and is targeted for completion in Q2 2028. It is ALP’s second OMEGA project in the Klang Valley and is designed as a multi-tenant logistics hub to support shared supply chain operations.

The facility will offer about 577,000 square feet of space and over 30,000 pallet positions, integrating ambient, chilled, and frozen zones for food and beverage, pharmaceuticals, retail, and e-commerce users. The design aims to improve efficiency and reduce duplication of logistics assets through automation and shared infrastructure.

Cold chain logistics is becoming increasingly important across sectors such as food distribution, pharmaceuticals, retail, and e-commerce. However, Malaysia’s cold chain infrastructure market remains relatively underserved in terms of automation, scalability, and energy efficiency. The project supports Malaysia’s ESG and energy transition goals and aligns with the National Energy Transition Roadmap (NETR) and New Industrial Master Plan (NIMP) 2030.

JUNE 2026

DAYONE SIGNS AGREEMENTS FOR 1.5 GW SOLAR CAPACITY AND 2.2 GWH BATTERY STORAGE IN MALAYSIA

DayOne Data Centers has signed renewable energy supply agreements with TNB Renewables Sdn. Bhd. (TRe) and TNB Power Generation Sdn. Bhd. (GenCo) to support the development of approximately 1.5 GWp of solar generation capacity and 2.2 GWh of battery energy storage systems (BESS) in Malaysia. The agreements form part of the company’s strategy to power its growing data centre operations with renewable energy and support its long-term decarbonisation goals.

The projects will be implemented under Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS) through Bilateral Energy Supply Contracts (BESCs). The portfolio will comprise ground-mounted solar facilities and hybrid hydro-floating solar projects, alongside large-scale battery energy storage systems to enhance energy reliability and grid integration. The agreements also include the transfer of Renewable Energy Certificates (RECs), supporting DayOne’s target of sourcing 100% renewable energy across its operations by 2030 or earlier and reducing Scope 1 and Scope 2 emissions by 42% from 2025 levels.

The latest agreements build on a renewable energy supply arrangement signed with Tenaga Nasional Berhad (TNB) in 2025, under which DayOne secured 500 MW of renewable energy for a 21-year period. The initiative also supports Malaysia’s National Energy Transition Roadmap, which targets net-zero emissions by 2050 and a 70% renewable energy share in installed power generation capacity.

MAHB UNVEILS USD 2.60 BN INVESTMENT PROGRAMME FOR AIRPORT UPGRADES ACROSS MALAYSIA

Malaysia Airports Holdings Berhad (MAHB) has announced plans to invest more than RM 11 Bn (USD 2.60 Bn) over the next five years to modernise and expand airport infrastructure across its network. The programme marks the company's first major long-term investment strategy since its privatisation in 2025 and will focus on capacity expansion, infrastructure renewal, technology upgrades, enhanced passenger experience, and sustainability initiatives.

The investment pipeline includes major development projects at Kuala Lumpur International Airport (KLIA), Penang International Airport, and Kota Kinabalu International Airport. A key component of the programme is the long-term KLIA Development Plan, which is intended to support future passenger demand of more than 100 million passengers annually. Expansion works at Penang International Airport will increase its annual passenger handling capacity from 6.5 million to 12 million, while upgrades at Kota Kinabalu International Airport will raise its capacity from 9 million to 12 million passengers per year.

In addition to terminal expansion projects, MAHB will undertake engineering asset replacement, pavement rehabilitation, utility upgrades, and technology modernisation initiatives across its airport network. Passenger-focused enhancements will include terminal reconfiguration, improved traffic flow, upgraded baggage handling systems, and modernised airport facilities.

MALAYSIA'S TANCO SIGNS MOU WITH CHINA MOBILE INTERNATIONAL FOR POTENTIAL 50 MW DATA CENTER IN PORT DICKSON

Malaysian property developer and investment holding company Tanco has signed a Memorandum of Understanding (MoU) with China Mobile International to consider developing a 50 MW data center in Port Dickson, located in the Malaysian state of Negeri Sembilan.

The MoU is to facilitate and support the company’s efforts to develop strategic relationships with reputable, capable, experienced, and global leading brands to expand the business activities of Tanco into other sectors (such as data centers).

The pair will have two years to sign a definitive agreement regarding the data center. An MoU is a preliminary, non-binding agreement signed between two parties. It is similar to a letter of intent (LOI). Tanco is a major property developer in Malaysia.

ERS ENERGY ADVANCES TWO 100 MW BATTERY ENERGY STORAGE PROJECTS UNDER MALAYSIA’S MYBEST PROGRAMME

ERS Energy Sdn Bhd has entered the execution phase of two utility-scale battery energy storage system (BESS) projects awarded under Malaysia’s Battery Energy Storage Programme (MyBeST), following the signing of project agreements with the designated offtaker. The projects form part of Malaysia’s first large-scale competitive procurement programme for grid-scale battery storage and are intended to strengthen grid reliability while supporting the country’s renewable energy transition.

ERS Energy secured two of the four projects awarded under the MyBeST programme, making it the largest recipient in the tender. The company directly secured one 100 MW/400 MWh BESS project, while the second 100 MW/400 MWh project will be delivered through a consortium with infrastructure developer Gamuda. Both projects are located in Peninsular Malaysia and are scheduled to commence commercial operations in 2027.

The projects will be developed in partnership with leading international energy storage technology providers and will provide critical grid support services, including enhancing system stability and facilitating greater integration of renewable energy resources. The projects represent an important step in the deployment of large-scale energy storage infrastructure in Malaysia and are expected to serve as reference projects for future BESS developments in the region.

The MyBeST programme is a key component of Malaysia’s energy transition strategy and is designed to accelerate renewable energy deployment while improving the resilience and flexibility of the national electricity network. Developers selected under the programme are responsible for project delivery as well as long-term operational performance, placing significant emphasis on technical expertise and asset management capabilities. ERS Energy has delivered more than 2 GWp of solar capacity across the Asia-Pacific region and provides engineering, procurement, construction, commissioning and asset management services.

KEE MING SECURES USD 17.14 MN CONTRACT FOR 99.99 MW SOLAR POWER PROJECT IN MALAYSIA

Kee Ming Group Berhad, through its wholly owned subsidiary Kee Ming Electrical Private Limited (KME), has secured a RM 70 Mn (USD 17.14 Mn) subcontract from Atlantic Blue Sdn Bhd, a subsidiary of Solarvest Holdings Berhad, for mechanical and electrical engineering works on a 99.99 MW solar photovoltaic (PV) project in Bukit Selambau, Kedah. The contract also includes a RM 2 Mn (USD 0.49 Mn) contingency provision for additional works that may be required during project execution.

Under the agreement, KME will undertake the supply, delivery, installation, testing and commissioning of the project’s electrical infrastructure, including the Solar Power Plant Interconnection Facility and the Tenaga Nasional Berhad (TNB) Interconnection Facility. The project supports Malaysia’s ongoing expansion of utility-scale renewable energy capacity and grid infrastructure. Upon completion, the 99.99 MW solar facility will contribute to the country’s clean energy targets while strengthening electricity supply in Kedah.

AIRTRUNK LAUNCHES MALAYSIA’S FIRST DATA CENTRE RENEWABLE VPPA UNDER GREEN POWER PROGRAMME

AirTrunk and renewable energy developer ib vogt have commenced commercial operations of a 29.99 MWac solar project in Malaysia under a long-term Virtual Power Purchase Agreement (VPPA). The agreement is the first renewable VPPA signed by a data centre operator under Malaysia’s Corporate Green Power Programme (CGPP), with the solar facility supplying electricity to the national grid while providing renewable energy certificates linked to AirTrunk’s Malaysian electricity consumption.

Developed by ib vogt, the solar project supports AirTrunk’s commitment to match 100% of electricity consumption across its Asia-Pacific and Middle East data centre platform with renewable energy by 2030. The VPPA contributes new renewable generation capacity to Malaysia’s grid while addressing the growing electricity demand from cloud computing and artificial intelligence infrastructure. The project also demonstrates the use of long-term corporate renewable energy procurement to support digital infrastructure expansion and national decarbonisation goals.

The project forms part of ib vogt’s expanding renewable energy portfolio in Malaysia, which also includes the 116 MWp Coara Marang Solar Plant in Terengganu and two 40 MWp CGPP projects in Kedah. The partnership highlights the increasing integration of renewable energy with data centre development across Southeast Asia as operators seek sustainable power solutions to support rapid growth in cloud and AI services.

List of key transactions - Malaysia Q2 2026

Source: YOG INFRA analysis

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