Who are Morinami Industrial Development Data Center customers?

Data centers have become a hot spot in the market, and Morinami Industries (SIMEPROP, 5288, main board industry stock) has also shared a share of the pie, becoming the latest industrial giant in China to announce the construction of data centers.

After holding an online briefing for the first quarter of fiscal year 2024 today, the company announced a joint development of a hyperscale data center with Pearl Computing Malaysia Private Co., Ltd.

According to the statement, the above data center covers an area of about 49 acres and is located in the 1,500-acre Elmina (Elmina) Industrial Park in Selangor, the largest industrial cluster under Senami.

The data center is scheduled to be launched in the second quarter of 2024 and is expected to be completed in 2026; the two parties signed a 20-year lease totaling RM2 billion, and each 5-year lease can be added twice.

Dato' Azmi Maliken, managing director of Morinami Industries, said at the online briefing this afternoon: “Just like other businesses, this (data center) is a long-term business, so we have to bear the brunt of it, depending on who we cooperate with. After all, this kind of cooperation is long-term.”

“Furthermore, we also need to pay attention to our own infrastructure to ensure that the company has sufficient capacity to meet the needs of the market.”

Currently collaborating with Pearl Computing, the company believes this will broaden its investment and asset management portfolio, meet the SHIFT25 strategy to generate recurring revenue, and raise the status of the Emena Industrial Park.