KJTS Group and Stonepeak Launch RM1.5 Billion Joint Venture to Revolutionize Malaysia's Cooling Infrastructure!

A Strategic Alliance for Sustainable Cooling

KJTS Group Berhad ("KJTS") has entered into a game-changing partnership with global infrastructure investment firm Stonepeak. Through its wholly-owned subsidiary, KJ Technical Services Sdn Bhd ("KJTS SB"), KJTS is joining forces with Stonepeak to form a joint venture (JV) focused on developing and investing in district cooling infrastructure across Malaysia. With a total investment target of up to RM1.5 billion, this collaboration is poised to transform the nation’s approach to sustainable cooling solutions.

Structure of the Joint Venture

The JV will be established with Stonepeak holding a 90% equity stake and KJTS SB retaining the remaining 10%. The newly formed entity will develop, own, and operate district cooling assets, tapping into the increasing demand for energy-efficient cooling amid rising urbanisation and climate concerns. By integrating advanced technologies and data-driven optimisation, the JV aims to reduce energy consumption and enhance overall cooling efficiency.

Aligned with Malaysia’s Sustainability Goals

The partnership aligns closely with Malaysia’s Energy Efficiency and Conservation Act (EECA) 2024, the National Energy Efficiency Action Plan (NEEAP) 2016–2025, and the Green Technology Master Plan (GTMP) 2021–2030. It also supports the ASEAN Cool Initiative, positioning Malaysia as a regional frontrunner in energy-efficient cooling infrastructure. The JV is expected to be a key player in the nation’s transition toward a greener, low-carbon economy.

Leveraging Expertise for Scalable Solutions

Under the JV agreement, KJTS SB will take the lead in identifying and acquiring viable cooling assets while ensuring alignment with the overarching energy transition strategy. It will also provide engineering, procurement, construction, and maintenance (EPCC) services, leveraging its extensive industry knowledge. As part of its role in operations and maintenance (O&M), KJTS SB will offer performance-based guarantees aimed at maximising energy efficiency, system reliability, and cost savings.

Stonepeak's Strategic Oversight and Global Reach

Stonepeak, known for its global expertise in infrastructure and real assets, will bring in financial capital and strategic direction. The firm’s involvement ensures robust governance, informed investment decisions, and access to global best practices in energy transition infrastructure. With a strong track record in high-impact infrastructure investments, Stonepeak’s role will be pivotal in scaling up and institutionalising the JV’s portfolio.

Technology-Driven Efficiency and Governance

Advanced system monitoring, predictive maintenance, and optimisation tools will be central to the JV’s operations. These technologies will allow for real-time data insights and proactive maintenance strategies, ensuring smooth operations and reduced downtime. Both parties have committed to clear governance protocols, including structured decision-making, transparent financial reporting, and strict compliance with international regulatory standards.

Supporting Malaysia’s Energy Transition

"Our partnership with Stonepeak is an important step in expanding our cooling infrastructure footprint. As demand for sustainable cooling grows, this joint venture strengthens our ability to deliver efficient, scalable solutions that support Malaysia’s energy transition and economic growth," said Azura Binti Azman, Independent Non-Executive Chairman of KJTS.

Looking Ahead: A Cooler, Greener Future

With a vision to modernise Malaysia’s cooling infrastructure, this joint venture represents a significant leap toward sustainability in the built environment. By combining financial strength with engineering expertise, KJTS and Stonepeak are setting the stage for next-generation cooling solutions that are not only energy-efficient but also resilient and future-ready. More announcements on upcoming projects and collaborations are expected soon as the JV moves into its implementation phase.