Malaysian conglomerate Chin Hin has signed a share sale agreement (SSA) to buy stakes in two data center engineering firms for RM51.5 million ($11.5m).

The company said it will acquire 65 percent stakes in Critical System Specialists for RM41.2 million ($9.2m) and CSS Engineering & Construction for RM10.3 million ($2.3m).

Chin Hin said both companies are pioneers in the engineering, procurement, and construction of data centers in Malaysia, adding the companies’ current client portfolios include Macquarie, DHL, Bank Negara Malaysia, and NTT Communications.

The deal is expected to close by Q3 of this year, according to Chiau Haw Choon, managing director of Chin Hin.

He said: “One of the projects that we will be working on upon the completion of the acquisitions is a 15MW data center in Johor which will provide cloud computing and AI services across the region.”

The company predicts the acquisitions will bring a cumulative profit guarantee totaling RM12.39 million for 2023 and 2024.

Founded in 1974, Chin Hin Group has projects in construction, property development, and the provision of building materials.

A recent report from DC Byte said Malaysia, along with India, was a leader in the APAC region, with Johor being named the fastest-growing market.

According to the report, Johor is a beneficiary of Singapore’s moratorium on data centers in 2019 because of its proximity and government policies.