Sime Darby Property Confident In Data Centre Expansion Despite US Semiconductor Tariffs

KUALA LUMPUR, March 3 (Bernama) -- Sime Darby Property Bhd (SDP) remains confident in its data centre business despite concerns over United States (US) semiconductor tariffs and artificial intelligence (AI) chip export restrictions, citing exemptions for US companies operating in Malaysia.

Group managing director and chief executive officer Datuk Seri Azmir Merican said the company’s data centre projects are backed by US hyperscale operators, including Google, which qualify for exemptions under US regulations.

“We are dealing with a US hyperscale company. Based on our communication with Google, we do not foresee any issues. The projects remain on track, and we are committed to pursuing more data center-related developments if the economics are right,” he said in an online media briefing on the group’s financial year 2024 (FY2024) today.

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Azmir said SDP has earmarked a long-term lease value of RM7.6 billion from its data centre projects over the next two decades, reinforcing its ambition to establish a steady recurring income stream.

He said the company expects the first data centre to begin contributing to earnings in 2026, with a second facility set to follow in 2027.

While no capital expenditure details were disclosed, he reiterated that SDP remains focused on securing long-term, sustainable returns from the growing digital infrastructure sector.

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For the FY2024 ended Dec 31, 2024, the company’s net profit rose 23.1 per cent to RM502.20 million, up from RM407.91 million in FY2023, while revenue increased to RM4.25 billion from RM3.44 billion in the preceding year, with all segments reporting growth.

Azmir noted that SDP delivered its strongest financial and operational performance to date, marking its third consecutive year of record revenue, profitability and sales performance.

“The group’s robust financial performance was underpinned by sustained sales momentum, higher site progress within the property development segment, and growing revenue contributions from the investment,   asset management, and leisure segments,” he added.

-- BERNAMA