Lestari Cooling Energy has strengthened its platform with the addition of Kumpulan Wang Persaraan (KWAP) as an investor, joining KJTS Group Berhad and Stonepeak in the district cooling joint venture.
The investment marks a significant step in scaling district cooling infrastructure in Malaysia. KWAP is expected to commit up to RM190 million through Dana Iklim+, Malaysia’s first climate-focused investment initiative.
This strengthens KJTS Group’s strategy to develop diversified district cooling and electricity distribution assets. The focus remains on Malaysia, where demand is rising due to urbanisation, industrial expansion, energy efficiency targets, and rapid data centre growth.
District cooling systems are widely recognised for their efficiency. They can reduce total energy consumption by up to 50 percent and deliver a lower carbon footprint compared to conventional cooling systems. These benefits are increasingly important as building owners face higher energy costs and stricter sustainability requirements.
Lestari Cooling Energy is positioned to address both challenges. The platform offers a scalable approach to cooling infrastructure while supporting cost control and operational stability for customers.
The joint venture is expected to be capitalised at up to RM1.5 billion through combined equity and debt funding. At full deployment, it is expected to achieve annual carbon savings of more than 70,000 tonnes.
The platform also supports Malaysia’s National Energy Transition Roadmap (NETR) by enabling energy efficiency at scale. It contributes to broader national goals on carbon reduction and sustainable urban development.
With the combined strengths of KJTS in operations, Stonepeak in infrastructure investment, and KWAP as a domestic institutional investor, Lestari Cooling Energy is well placed to accelerate deployment and deliver long-term value in Malaysia’s energy landscape.
