KJTS Group Bhd and Stonepeak have announced a joint venture (JV) to develop district cooling projects in Malaysia, with an initial capitalisation of MYR1.5 billion. The partnership aims to invest in district cooling and electricity distribution assets, addressing Malaysia’s growing energy efficiency needs amid rapid urbanisation and data centre expansion.
District cooling can cut energy consumption by up to 50 per cent compared to traditional systems, making it a key component of national climate action plans. The JV targets a MYR2 billion annual project deployment market. Legal counsel for the deal included Skrine for KJTS and Linklaters LLP with Rahmat Lim & Partners for Stonepeak. The transaction is set to close in Q1 2025.