Mah Sing, Kinergy in power-supply tie-up for Johor, Selangor data centres
Mah Sing Group has signed a non-binding term sheet with Kinergy Advancement to study captive power and renewable energy options for its proposed data centre projects at Southville City in Bangi and Meridin East in Pasir Gudang. The collaboration covers technical and commercial assessments for power
PETALING JAYA (Oct 2): Mah Sing Group Bhd, through wholly owned subsidiary Garden Vista Development Sdn Bhd, has entered into a non-binding, non-exclusive collaboration term sheet with Kinergy Advancement Bhd to explore power solutions for proposed data centre developments at Southville City in Bangi, Selangor, and Meridin East in Pasir Gudang, Johor.
In a statement on Friday (Oct 2), Mah Sing said Kinergy will act as technical adviser and provide preliminary technical and commercial input on potential captive power plant (CPP) and/or power supply arrangements under the Corporate Renewable Energy Supply Scheme (CRESS). The assessments may cover projected power requirements, technology selection and plant sizing, site suitability, regulatory considerations and potential project structures.
Mah Sing said the collaboration combines its development and site-planning capabilities with Kinergy’s experience in power generation, engineering, procurement, construction and commissioning, as well as renewable and sustainable energy solutions. “For large-scale data centres, power is as critical as land, connectivity and water. Planning the energy infrastructure early can strengthen the readiness, scalability and long-term competitiveness of a data centre development,” said Mah Sing group CEO and executive director Datuk Voon Tin Yow.
He said the term sheet allows both parties to evaluate opportunities while preserving Mah Sing’s flexibility as the projects progress. Mah Sing said its digital infrastructure strategy encompasses land monetisation, development and asset ownership. This gives the group flexibility to selectively monetise development-ready land, develop enabling infrastructure and core-and-shell facilities, and explore ownership of income-generating digital infrastructure assets alongside experienced operators.
The developer said ownership of build-to-lease data centre assets supported by longer-term leasing arrangements could create recurring income. Mah Sing said pursuing this model would require capabilities to plan, engineer and deliver the underlying power infrastructure, including renewable energy sourcing and, where appropriate, dedicated generation.
Kinergy executive deputy chairman and group managing director Datuk Dr Lai Keng Onn said the collaboration builds on the companies’ decade-long relationship and would explore how engineering and energy solutions could support Mah Sing’s data centre development plans. He said captive power could provide greater flexibility in meeting large, continuous electricity requirements and support a more coordinated approach to integrating renewable energy. “The proposed captive power solutions are intended to complement the wider electricity system, providing an additional source of capacity and flexibility alongside conventional grid supply rather than replacing it,” Lai said.
Mah Sing said property development remains its core business, while its selective expansion into digital infrastructure aims to unlock additional value from its landbank and create recurring-income opportunities over time. Its digital infrastructure pipeline includes Mah Sing DC Hub @ Southville City, Meridin East and MS Industrial Park @ Kulai. The collaboration with Kinergy focuses specifically on evaluating CPP and CRESS solutions for Southville City and Meridin East. The group said it is positioning the Southville City hub for hyperscale and artificial intelligence infrastructure operators, while MS Industrial Park @ Kulai represents a future data centre land opportunity. Over time, the Kulai development could incorporate income-generating assets supporting data centre operations, logistics and warehousing, alongside related digital infrastructure and services, it added.
