Southern Steel's conditional tenancy with Deep Source (PN) Sdn Bhd puts a clear rental number on the reuse of an industrial site for data-centre activity in Seberang Perai Tengah: RM917,250 a month, or RM33.02 million over three years.
The agreement, signed on 1 October 2026, covers 6.29513 hectares of leasehold land in Mukim 01, Penang, together with existing buildings, structures, fixtures and improvements, according to Southern Steel's Bursa announcement mirrored by KLSE Screener. On land area alone, the rent works out to about RM1.35 psf a month, the same market rental level cited by independent valuer CBRE WTW Valuation & Advisory in EdgeProp's report.
The commercial point is that this is not a sale. Southern Steel remains the landlord, while Deep Source gets premises for proposed data-centre use subject to conditions. Those include consent from the Penang State Authority and Penang Development Corporation for the rental, the data-centre use and any applicable construction on the land.
For industrial owners in mainland Penang, the lease is another marker of how data-centre demand is moving beyond purpose-built greenfield campuses. A working industrial property with large land area, buildings and utility access can become valuable if the approvals and power requirements line up. That does not make every factory a data-centre site, but it does show why older industrial assets in Seberang Perai are being looked at differently.
The company said the tenancy is expected to provide recurring revenue and contribute positively to the group's financial results during the term. The lease still has to become unconditional before that rent begins.
Sources: Southern Steel Bursa announcement mirror, EdgeProp, DagangNews.
