Asia-Pacific Newsweek
Kuok Meng Wei, whose grandpa was as soon as called the globe’s shrewdest entrepreneur by Forbes, is leading his family members right into what the 41-year-old calls the best sector in years.
By Jonathan Burgos, Forbes Team
T he origins of Kuok Team, the empire established by famous company magnate Robert Kuok, return to 1949 in Malaysia’s Johor state, where he and his bros began a company trading daily things such as sugar, rice and flour. Greater than 75 years later on, once-sleepy Johor, capitalizing its abundant land and distance to Singapore, has actually changed itself right into a flourishing technology center. There, in a homecoming of kinds, the Kuok Team has actually locked on to the chance of marketing a 21st century vital: information storage space.
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Last October, the team’s independently held system K2 Strategic, led by the patriarch’s 41-year-old grand son Kuok Meng Wei, opened up a 60 megawatt (MW) information facility– ability is determined by power intake– at the 700-acre Sedenak Technology Park, among a lots electronic centers increasing throughout Johor. Found regarding 30 kilometers from the century-old embankment connect-ing Singapore and state funding Johor Bahru, it has actually attracted several of the largest information facility gamers from worldwide.
” The information facility sector is the best sector we have actually seen for years,” claims Meng Wei. “AI work are driving the need for information facilities tremendously.”
In Johor, K2 Strategic is presently the third-biggest driver, after Bain Funding’s Bridge Information Centres, with 126MW, and DayOne (a system of China’s GDS) with 115MW, according to London-based home working as a consultant Knight Frank. Various other gamers consist of Warburg Pincus-backed Princeton Digital Team and Malaysian magnate Francis Yeoh’s YTL Corp., which has actually partnered with AI chip programmer Nvidia. Meng Wei hesitates to divulge the names of K2’s existing customers, claiming, “We count 2 of the globe’s biggest cloud provider and the globe’s fastest-growing social networks company amongst our listing of consumers.”
Quick Clip
Sustained by the fast movement of business information onto the cloud and fostering of AI, K2 Strategic’s income has actually skyrocketed in the previous 6 years.
Resource: K2 Strategic
K2’s handling supervisor and chief executive officer claims the information facility boom resembles the “huge macro wave” the Kuok Team rode when China opened under Deng Xiaoping in the late 1970s, letting loose need for needs like edible oil and various other agri-commodities. Certain that riding this new age will certainly settle, Meng Wei is increasing down with strategies to spend a massive $9 billion over the following 5 years in addition to the $1 billion he’s currently invested. The mass has actually been set aside for constructing information facility ability in Malaysia, Indonesia and Thailand.
These nations, which are Southeast Asia’s fastest-growing information storage space centers, according to Knight Frank, have actually taken advantage of Singapore’s 2019 postponement on structure information facilities because of restraints ashore and power supply. The postponement was raised in 2022, yet brand-new buildouts proceeded in Malaysia and in other places as Singapore enforced extra strict needs.
” The information facility sector is the best sector we have actually seen for years.”
Large cash is putting right into the information facility boom in the area. Amazon, Google, Microsoft and Oracle are fast-expanding their electronic impact throughout Southeast Asia, with strategies to spend greater than a mixed $44 billion in the following couple of years. Simply over fifty percent of that quantity–$ 23 billion– is targeted for Malaysia.
Regardless of the fast build-up, sector gamers are certain need is lasting. “The sector is not overbuilding ability right now,” claims Otto Toto Sugiri, billionaire cofounder and chief executive officer of Jakarta-listed DCI Indonesia, that nation’s biggest information facility service provider. (At the end of 2024, it ran 7 facilities with an incorporated ability of 83MW.)
Meng Wei is scaling up quickly. His objective is to enhance K2’s ability significantly to 1,200 MW by 2030 from 120MW presently. To accomplish this, he’s looking for brand-new websites in Malaysia outside the Sedenak school, which he anticipates to be totally inhabited within the following a couple of years. Concurrently, he’s broadening in Indonesia where K2 Strategic has actually partnered with the billionaire Widjaja family members’s Sinar Mas Land. They have actually obtained 2 websites in Bekasi in eastern Jakarta, covering over 40 acres, where they prepare to establish greater than 100MW.
K2 Strategic’s information facility school in Dublin.
Thanks To K2 Strategic
The “K” in K2 Strategic does not represent Kuok; the name is from the globe’s second-tallest hill, which is a steeper, harder climb than Everest. Its height at 8,600 meters over water level is where “the clouds touch the ground,” Meng Wei claims. K2 Strategic’s income has actually been climbing up, touching virtually $100 million in 2024 from $3 million in 2018, when it opened its very first information facility in Ireland, a lot prior to Southeast Asia ended up being an information facility hotspot. (The unpublished firm does not divulge various other economic numbers.)
Meng Wei began his profession in the agriculture side, the Kuok Team’s typical essential. After making a commercial design level from Stanford College in 2007, he operated at Singapore-listed Wilmar International, the hand oil gigantic cofounded by Robert Kuok’s nephew Kuok Khoon Hong (additionally a billionaire with a current total assets of $2.8 billion). Later on, as an executive supervisor of a Wilmar subsidiary, Meng Wei shuttled in between Singapore and Myanmar, where the assets titan had actually spent $1 billion in a profile of properties, consisting of the nation’s biggest sugar refinery by quantity and port procedures in Thilawa, an unique financial area near Yangon.
In 2016, Meng Wei was charged with establishing the Kuok Team’s unique jobs workplace to check out brand-new services. He recommended purchasing important facilities– a lengthy pregnancy company yet one with a consistent income stream that might give a bush versus the intermittent nature of the team’s core tasks of assets and delivery.
Location
Many Thanks to the AI boom, need for information facility ability is anticipated to enhance quickly in the Asia-Pacific and around the world.
* PROJECTION|All numbers remain in gigawatts (1,000 megawatts amounts to 1 gigawatt.) Information facility ability is determined by power intake.
Resource: JLL
That very same year, after a recommended financial investment in a nuclear power plant in Myanmar deciphered, Meng Wei discovered an unique chance: to transform a stockroom in Dublin right into an information facility. “It was really early days in the advancement of hyperscale information facilities and couple of financial institutions recognized exactly how to fund this property course,” remembers Meng Wei. He provided the financial investment proposition to his family members with an engaging pitch. “Information facilities will certainly give solid returns in great times and hard times, practically like a bond,” he suggested.
K2 Strategic invested EUR150 million ($ 153 million) to establish an 18MW facility in Dublin, finishing the job in 2018. “The principle was so brand-new that for the lengthiest time my mother-in-law believed I was establishing a phone call facility,” remembers Meng Wei. Today, K2 Strategic is among the largest information facility drivers in Dublin, with functional ability of 60MW throughout 4 facilities, which have significant united state technology business as renters.
The venture right into information facilities was not an uncommon step for the Kuok Team. Patriarch Robert Kuok established the phase for the team’s development right into technology over twenty years earlier when he bought Epsilon Telecom in 2003. In a very early model of the information facility design, Epsilon offered connection and colocation centers to house computer system web servers for consumers such as financial institutions.
” The sector is not overbuilding ability right now,” claims the owner and chief executive officer of Indonesia’s biggest information facility financier.
While Epsilon was at some point offered to Korea Telecommunications for $145 million in 2021, Meng Wei’s job as a supervisor of the firm from 2016 till the sale aided him comprehend business. Epsilon additionally offered K2 with information facility proficiency in the very first year of its procedures.
Meng Wei’s timing has actually shown to be arbitrary. Information facility ability in the Asia-Pacific climbed up 80% to 18 gigawatts (GW) in 2024, up from 10GW at the elevation of the pandemic in 2020. It will likely touch 35GW (bookkeeping for 35% of the worldwide total amount) by 2029, according to Chicago-based JLL.
” Information facility financial investments are affected by an engaging worldwide story of rapid need for calculating power and information storage space, constricted supply because of power deficiency, and appealing economic returns,” Glen Duncan, head of Asia-Pacific information facility study at JLL in Singapore, claims by e-mail.
In a proposal to stay on top of increasing need, Meng Wei is utilizing the Kuok Team’s maritime design capacities to construct information facilities at a quicker rate. In 2023, the team obtained Singapore’s McPEC, a contractor of modular frameworks for overseas oil-and-gas centers, that has actually given that begun developing lego-like modular frameworks comparable to those set up at Sedenak, which was integrated in much less than a year.
Pictures by Munster Cheong for Forbes Asia
Such innovation accelerate the building and construction of information facilities and they can be up and running faster than the common two-year amount of time it generally takes, Meng Wei claims. “The rate aspect is really essential,” verifies Fred Fitzalan Howard, associate supervisor and information facility lead at Knight Frank in Singapore. “The quicker they can provide the information facility ability, the far better.”
According to the International Power Firm, information facilities represent around 1% of worldwide power intake, which Goldman Sachs Research study approximates might climb to 3-4% by the end of the years. (In Ireland, information facilities consume 20% of the power manufacturing.) As building and construction collects rate, it triggers a stress on neighborhood power networks, as is taking place in Malaysia. Last July, components of Klang Valley, beyond Kuala Lumpur experienced a blackout, 7 months after the nation’s migration checkpoint at the Singapore boundary experienced a 10-hour power outage.
Meng Wei is really familiar with the power-guzzling nature of business. The Kuok Team, he claims, intends to transform some 1,000 acres of its ranch websites in Malaysia right into solar ranches and various other renewable resource jobs, possibly constructing 100MW of solar-generated power ability on fifty percent of the land. “The sustainability angle is really solid for me,” Meng Wei claims. “I wish to recall and inform my youngsters what I did to make this globe a far better area.” — With reporting from Ardian Wibisono in Jakarta.
HOUSEHOLD CONNECTIONS
Forbes
K uok Meng Wei comes from the 3rd generation of a business family members that’s made its mark in Southeast Asia and China. His grandpa Robert Kuok, a titan in company, that commemorated his 101st birthday celebration in October, began trading assets after The second world war and increased right into logistics and resorts along with delivery and shipbuilding.
In 1997, Robert showed up on the cover of Forbes, where he was called “The Globe’s Shrewdest Business person.” The ton of money he generated along the road made him the title of Malaysia’s wealthiest individual, a setting he remains to hold. While he was usually described as Asia’s sugar king, he additionally established the deluxe Paradise Hotels chain. Today, the Kuok Team has greater than 100 resorts and hotels in practically 80 locations under the Hong Kong-listed firm.
Robert Kuok, his brother or sisters and a relative, began Kuok Brothers in 1949 to trade rice, sugar and flour from a shophouse (portrayed in this paint) in Johor, Malaysia.
Pictures by Munster Cheong for Forbes Asia
The patriarch’s youngsters have actually taken the helm at crucial business in Singapore and Hong Kong, where Robert has actually been a veteran homeowner. His oldest child, Kuok Khoon Chen, additionally called Beloved, is chairman of Kuok Team. One more child, Khoon Ean, Meng Wei’s daddy, is chairman of Kuok Singapore with property holdings in the city-state, which additionally functions as the base for the team’s delivery, electronic facilities and maritime design services. Robert’s youngest child, Kuok Khoon Hua, is chairman and chief executive officer of Hong Kong-listed Kerry Qualities, which has prime office complex in Hong Kong and landmass China, while little girl Kuok Hui Kwong is chairman of Paradise Team.
In the 3rd generation, Meng Wei’s older sibling, Meng Xiong, described as MX, handles the family-backed personal equity company K3 Ventures, which has actually bought greater than 50 start-ups consisting of TikTok moms and dad ByteDance and ride-hailing and food shipment firm Grab.
Meng Wei claims that age has actually not perished his grandpa’s interest for company. “He still maintains his power high and remains on top of advancements.” After reviewing media records regarding worldwide business intending information facilities in Malaysia, Robert messaged his grand son: “What’s taking place? Offer me an upgrade.” — J.B.
