Malaysia’s public sector pension fund KWAP is set to invest up to 190 million ringgit (about $48 million) in district cooling platform Lestari Cooling Energy, according to an announcement.
The investments give fresh backing to a joint venture between Malaysian integrated energy management services provider KJTS Group and infrastructure investor Stonepeak.
The capital will be channelled through Dana Iklim+, described as Malaysia’s first climate-focused initiative. It brings KWAP into Lestari Cooling Energy alongside existing partners KJTS Group Berhad and Stonepeak, per the announcement.
Dana Iklim+ is KWAP’s third catalytic investment programme, following Dana Pemacu and Dana Perintis.
Lestari Cooling Energy is focused on investing in and developing district cooling and electricity distribution assets, mainly in Malaysia, targeting rising demand for efficient cooling infrastructure.
District cooling systems, which centralise cooling production for multiple buildings, are increasingly being pitched as a lower-emissions alternative to conventional cooling methods.
The companies said such systems can reduce total energy consumption by up to 50% and lower carbon emissions compared with traditional cooling approaches.
The addition of KWAP strengthens a platform that was previously announced with a target capitalisation of up to 1.5 billion ringgit, or roughly $380 million, through combined equity commitments and debt funding.
At full deployment, the company expects its projects to generate savings of more than 70,000 tonnes of carbon dioxide emissions a year, while also helping businesses and building owners manage rising electricity costs.
Azura Binti Azman, independent non-executive chairman of KJTS, said the partnership would deliver long-term cooling infrastructure aligned with Malaysia’s sustainability goals.
The investment also gives added institutional weight to a platform positioned to benefit from Malaysia’s push to scale energy-transition infrastructure.
The companies said Lestari Cooling Energy supports the National Energy Transition Roadmap by promoting energy efficiency on a broader scale.
Stonepeak’s Head of Asia and the Middle East, Hajir Naghdy, said the expansion of the platform underscored the growing role of district cooling as critical infrastructure in Malaysia.
In 2024, KWAP pledged $4.5 billion to sustainable investments by 2030 to achieve a net-zero portfolio by 2050.
Malaysia is committed to reducing its carbon intensity by 45% by 2030. It will need around $570 billion over the next two decades to achieve its climate and sustainability goals.
