Malaysia’s Palm Oil Giants Pivot to AI Data Centres with Solar-Powered Parks

Malaysia’s palm oil giants, once criticised for deforestation, are transforming into key players in the country’s surging data centre sector. Companies like SD Guthrie Bhd, the world’s largest palm oil planter, are converting thousands of hectares of low-yield plantations into industrial parks equipped with hyperscale data centres and large-scale solar farms.

Palm Oil Giants

With Malaysia emerging as Southeast Asia’s fastest-growing data centre market — attracting over US$34 billion in investments from Google, Microsoft, and Amazon — demand for land and renewable energy has skyrocketed. By 2035, data centres could consume five gigawatts, nearly 20% of current national capacity.

SD Guthrie plans to develop 10,000 hectares and reach one gigawatt of solar capacity within three years, enough to power up to ten AI-focused hyperscale facilities. The company expects the new ventures to contribute one-third of profits by 2030, marking a strategic shift from commodities to green tech infrastructure in Johor and beyond.

Business News