KJTS Group Berhad and the investment firm Stonepeak have announced that Kumpulan Wang Persaraan (Diperbadankan), known as KWAP, has joined their joint venture platform. The pension fund is set to invest approximately RM190 million ($40.1 million) into Lestari Cooling Energy Sdn. Bhd. This move is designed to speed up the development of district cooling and electricity distribution assets throughout Malaysia.
District cooling systems are highly efficient and can cut total energy use by up to 50%. They provide a much lower carbon footprint than traditional cooling setups. This technology is becoming vital in Malaysia as industrial growth and data centre developments increase the need for sustainable energy solutions. The investment from KWAP is being made through Dana Iklim+, which is the first climate-focused initiative in the country. This project aligns with the National Energy Transition Roadmap (NETR) to help the nation reach its carbon reduction targets.
The joint venture platform is expected to reach a total capitalisation of up to MYR 1.5 billion ($316.3 million) through combined commitments and debt. The partners are looking at a market with over MYR 2 billion ($421.8 million) in yearly project opportunities. Once the platform is fully operational, it is expected to prevent over 70,000 tonnes of CO2 emissions every year. It also offers a way for local businesses to manage rising electricity costs.
“We are pleased to have KWAP as an investor in Lestari Cooling Energy as we continue to scale our district cooling business,” said Azura Binti Azman, Independent Non-Executive Chairman of KJTS. “The combination of Stonepeak’s global infrastructure expertise, KWAP’s strong domestic institutional presence and KJTS’ operational capabilities position the partnership well to deliver dependable, long-term cooling infrastructure aligned with Malaysia’s sustainability and energy transformation objectives.”
The platform is also part of the Ministry of Finance’s GEAR-uP programme. This initiative aims to help local economic sectors grow through sustainable investment. By bringing together global expertise and local institutional support, the partners hope to build a more resilient energy network.
Hajir Naghdy, Senior Managing Director and Head of Asia and the Middle East at Stonepeak, added, “The continued growth of Lestari Cooling Energy reflects the importance of district cooling as critical infrastructure in Malaysia and the strong opportunity set for the Company. We are excited to continue expanding the Lestari Cooling Energy platform in partnership with KWAP and KJTS to support Malaysia’s growing energy needs.”
