UEM’s Solar Data Parks Propel Johor’s $40B Data Center Boom
UEM Group, backed by Khazanah Nasional, is converting its 4,600-acre land bank in Johor into renewable energy-powered data center parks, including a 40-acre industrial park in Gerbang Nusajaya. Through UEM Lestra, it will build a 1 GW hybrid solar plant—starting with a 500 MW, 2.5 billion ringgit phase—and expand biogas capacity from 350 MW to 1 GW. The group also acquired a majority stake in Nur Power, committing 1.5 billion ringgit to carbon reduction and exploring water treatment for cooling. Johor has already attracted 164.45 billion ringgit (~$40 B) in data center investment as of Q2 2025 and is projected to host 60% of Malaysia’s data centers by 2030. These renewable-powered data centers could bolster UEM’s profitability in 2025 and drive momentum into 2026, while enhancing power stability for crypto and digital infrastructure operations.
Neutral
The announcement primarily concerns expansion of renewable-powered data center capacity in Johor, boosting digital infrastructure rather than signaling demand shifts for specific cryptocurrencies. While improved power stability and capacity could support crypto mining and blockchain operations, the direct impact on coin prices is limited. In the short term, traders are unlikely to react strongly to infrastructure developments, making the outlook neutral. Over the long term, enhanced data center and renewable energy capacity may underpin broader adoption of decentralized applications, but this gradual effect does not translate into immediate market moves.