Maxland Signs Agreement with GDC Data for Joint Data Center Development

Timber company Maxland Bhd has signed an official agreement with data processing services provider GDC Data Sdn Bhd to jointly explore data center development in Kulim, Kedah. In a stock exchange filing on Monday, the company announced that its wholly owned subsidiaries, Maxland Energy Sdn Bhd and Maxland Real Sdn Bhd, have entered into the agreement with GDC Data.

Under the agreement, GDC Data will acquire a 49% stake in Maxland Real, which will function as the joint venture (JV) company for the collaboration. Both Maxland and GDC Data will contribute RM12 million each, totaling RM24 million in capital for the JV company. As per the agreement, Maxland will be responsible for securing financing for the project, while GDC Data will focus on procuring offtakers and hiring turnkey contractors.

According to Maxland, the partnership aims to develop a cutting-edge data center at the Kulim High-Tech Park, leveraging GDC Data's expertise in digital infrastructure services and its role in sourcing offtakers. The company, formerly known as Priceworth International Bhd, highlighted this initiative in a recent filing. In December of the previous year, Maxland signed a lease agreement with Kulim Technology Park Corp Sdn Bhd for a 4.57-acre site in the park, with a lease value of RM9.95 million, where it plans to establish the data center.

Additionally, Maxland stated that the collaboration will also explore opportunities for data center development in Sedenak, Johor. On Monday, Maxland's shares ended 8.33% lower, down by half a sen to 5.5 sen, bringing the company's market capitalization to RM73.5 million.