KJTS Group Berhad (KJTS), a leader in energy-efficient cooling solutions, has formed a joint venture with its subsidiary, KJ Technical Services Sdn Bhd (KJTS SB), and Stonepeak, an alternative investment firm. Stonepeak holds a 90% equity interest, while KJTS SB holds 10%. This joint venture will invest up to RM1.5 billion in cooling infrastructure to support Malaysia’s energy demands and promote sustainable cooling solutions.
The joint venture will create a new company (JV Company) focused on developing and investing in district cooling solutions in Malaysia. As more people move to cities and energy costs rise, the need for efficient cooling is expected to grow significantly. The JV Company plans to use innovative technology, predictive maintenance, and data to improve efficiency, lower energy use, and help Malaysia reach its net-zero goals.
This investment aligns 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, helping Malaysia become a leader in improving cooling infrastructure in the region. We believe the JV Company will create better cooling options that rely less on traditional, energy-heavy methods.
Under the agreement, KJTS SB will take the lead in finding and acquiring assets while making sure they fit with the energy transition strategy. They will provide engineering, procurement, construction, and maintenance (EPCC) services to create efficient cooling solutions. KJTS SB will also offer operation and maintenance (O&M) services, including performance-based guarantees to improve efficiency, reliability, and cost savings for users.
Stonepeak will provide funding and strategic guidance, helping to shape the investment strategy and growth of the joint venture. With their experience in global infrastructure investments, Stonepeak offers important industry connections and knowledge for expanding energy transition projects. The joint venture is designed to combine financial management with operational know-how, creating a sustainable model for long-term success.
Both parties have set clear governance protocols, including organized decision-making, financial reporting, and adherence to international regulations. KJTS SB will also use advanced real-time monitoring, predictive maintenance, and data-driven optimization to improve the performance of cooling assets.
“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.
With an investment of RM1.5 billion, this initiative highlights Malaysia’s cooling sector’s long-term potential, aiming to modernise infrastructure and enhance energy-efficient solutions, with more project details to follow.