en.Wedoany.com Reported - Malaysian real estate developer Paragon Globe Berhad (PGB) is selling two plots of land in Johor to DayOne subsidiary DayOne Data Centers Malaysia III Sdn Bhd (DDCM) for 398.11 million ringgit (approximately $96.6 million), to be paid in cash. DDCM plans to build a data center on this land.

According to documents from Bursa Malaysia, PGB's wholly-owned subsidiary PGB Landmark Sdn Bhd (PLSB) signed a conditional sale and purchase agreement with DDCM earlier this week. Through this transaction, DDCM will acquire approximately 26 hectares of land in Tanjung Kupang, Johor. This acquisition will complement DayOne's existing operations in Johor, where it currently operates two facilities at Nusajaya Tech Park and Kempas Tech Park, with a total capacity of approximately 120MW.

The land is currently zoned for agricultural use, so converting the land use and obtaining permits for building a data center are key parts of the agreement. Additionally, PLSB will carry out infrastructure works on the land at its own cost, according to specifications set by DayOne. Payments will be made in eight installments based on development milestones, one of which is obtaining approval from the Malaysian government's Data Centre Task Force. Early site access, land use conversion, and issuance of a new land title will also trigger payments.

This transaction is the second data center land sale being advanced by PGB. In May 2024, the developer signed a conditional agreement to sell 19.36 hectares of land in Plentong to Bridge Data Centres Malaysia IV for 238.32 million ringgit, with the transaction expected to be completed in the second half of 2026. PGB stated in exchange filings that the proceeds from the sale will be used to fund ongoing projects, infrastructure works on the land, new land acquisitions, partial repayment of bank loans, and working capital.

This land acquisition aligns with DayOne's commitment made earlier this year to invest a cumulative total of 28 billion ringgit ($6.96 billion) in Malaysia by the end of 2026. This figure includes doubling its employee count in Malaysia. PGB needs shareholder approval to proceed with the agreement and will convene an extraordinary general meeting for this purpose. The agreement is expected to be finalized in the second half of 2027.

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