Hibiscus Petroleum, Seri Pajam assess energy solution development for data centres in Malaysia

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Highlights

Hibiscus Petroleum and Seri Pajam Development signed a 30 Sept agreement to assess energy development at SPD Tech Valley to support data centres.
The collaboration focuses on leveraging gas, solar energy and carbon capture systems, in line with the Hibiscus 3.0 strategy towards low-carbon power generation.
Hibiscus Petroleum shares rose 4.05% to RM2.31 on Wednesday, with a market capitalisation of RM1.703 billion following the announcement of the new energy initiative.

This article was translated from the original. Read the original version by our correspondent here.

Collaboration framework for on-site power

As reported by The Edge Malaysia, citing a Hibiscus Petroleum press release on Wednesday, the agreement dated 30 Sept establishes a collaboration framework between Hibiscus Petroleum Berhad and Seri Pajam Development Sdn Bhd to assess the use of gas turbines, gas engines, solar energy and carbon capture systems on land owned by SPD and its affiliates.

SPD Tech Valley in Senawang, Negeri Sembilan, has been identified as a strategic industrial park with smart and sustainable infrastructure suitable for data centres, supported by on-site power plants. Hibiscus Petroleum said the initiative aligns with its "Hibiscus 3.0" strategy to expand into energy transition segments and adjacent energy businesses while retaining oil and gas as its core business.

The company said the collaboration combines SPD's land bank and industrial development track record with Hibiscus Petroleum's operational record, health and safety standards, and long-term energy asset management capabilities.

Implications for the data centre market and revenue

The group aims to help meet Malaysia's rapidly growing power demand, driven by data centres and artificial intelligence workloads. The initiative builds on a collaboration agreement signed on 30 Sept 2025 between Hibiscus Petroleum, Sime Darby Energy Solutions Sdn Bhd, Kawasaki Gas Turbine Asia Sdn Bhd and Kawasaki Heavy Industries Ltd.

The earlier collaboration combined utility-scale engineering, procurement, construction and commissioning capabilities with combined-cycle gas engine and gas turbine power technology. Hibiscus Petroleum's senior vice president of strategic initiatives, Chong Chee Seong, said data centres and AI workloads require reliable, efficient and increasingly lower-carbon power supplies, and the expansion of the company's expertise into distributed power generation aims to meet that demand while creating more stable additional revenue streams for shareholders.

Hibiscus shares closed nine sen, or 4.05%, higher at RM2.31 on Wednesday, giving the group a market capitalisation of RM1.703 billion.

In our earlier article on the government's assessment of data centre electricity and water demand, we explained how authorities are examining actual usage against the capacity requested by operators, particularly as investment interest continues to rise towards 2030. We also discussed operators' options for providing their own supply, such as solar energy or battery systems, subject to Energy Commission licensing and the need to balance investors' interests with national interests.

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