ENGIE, a global provider in low-carbon energy and services, and Sunway Property, the property arm of Sunway Group, announced the expansion of the Sunway Square district cooling system partnership through their joint venture, ENGIE-Sunway DCS Sdn Bhd, to serve Sunway Education’s facilities, including Sunway University and Sunway College campuses.
The expansion builds upon the first district cooling system (DCS) launched in June 2025 to supply chilled water to the Sunway Square, a RM2 billion mixed-use development featuring Grade A offices, retail, a performing arts centre and a university block. With Sunway Square Corporate Towers now completed and tenants progressively moving in, the retail component is slated to open in December 2025, while the performing arts centre opens in 2026.
Scheduled to be completed in September 2026, the expanded DCS network connects up to 3,000 refrigeration tonnes (RT) of cooling capacity to serve eight SEG buildings, including the newly constructed Engineering Annex, Faculty of Engineering & Technology and Graduate Centre. It will meet up to 60 percent of the campuses’ peak cooling needs and approximately 75 percent of their annual cooling demand, cutting carbon emissions by 29 percent, equivalent to more than 48,000 tonnes of CO2 avoided over the 24-year contract period.
This initiative supports Malaysia’s national target to cut greenhouse emissions by 45 percent by 2030 under the Paris Agreement.
Accelerating Malaysia’s Energy Transition with Scalable Infrastructure
The expansion reinforces ENGIE and Sunway Property’s shared commitment to developing scalable, low-carbon urban infrastructure that embeds sustainability into every layer of city design. This growth builds on the success of the first ~7,000 RT DCS facility serving four commercial buildings in Sunway Square, demonstrating district cooling can deliver measurable carbon and energy savings in dense, mixed-use environments.
“This expansion marks another step forward in our partnership with Sunway Property to shape the next generation of sustainable cities,” said Jacques Boonen, Managing Director for Southeast Asia, ENGIE. “It shows that sustainability and growth can go hand-in-hand. What we’re building with Sunway Property goes beyond infrastructure. It’s a model for how advanced cooling solutions can power Malaysia’s low-carbon transition and inspire similar developments across the region.”
Chong Sau Min, Chief Executive Officer of Sunway Property (Central and Northern Region), added, “As a Master Community Developer, we see sustainability as central to how we plan and grow our townships. The success of our first DCS at Sunway Square marked a major milestone, and this expansion builds on that achievement to scale low-carbon infrastructure across Sunway City Kuala Lumpur. Together with ENGIE, we’re integrating advanced energy solutions that strengthen our ecosystem and move us closer towards creating a smarter, more sustainable city for generations to come.”
Engineering Innovation that Balances Design, Efficiency, and Space
The collaboration between ENGIE and Sunway Property reflects a long-term commitment to advancing sustainable urban development in Malaysia. The partnership began in 2020 and subsequently progressed into the Sunway Square DCS project in 2022, demonstrates how technical innovation and design excellence can coexist to support a low-carbon future.
Commissioned in mid-2025, the cooling plant features the state-of-the-art design of the Chilled Water Thermal Energy Storage (TES) tank that functions as a “mechanical battery,” improving system efficiency, resilience and cost optimisation. Recognising the premium on urban land and Sunway Property’s emphasis on aesthetics, ENGIE’s engineers integrated the TES tank within a car ramp spiral – to preserve valuable space use while blending seamlessly with the surrounding architecture. This innovation sets a new benchmark for how sustainable infrastructure integration in high-density environments, showing how engineering creativity can solve spatial and environmental challenges simultaneously.
A Proven Model for Low-Carbon Urban Development
The Sunway Square DCS is targeted to achieve around 20 percent energy savings in air conditioning cost and CO2 emissions, laying the foundation of a wider cooling network delivering sustainable, scalable cooling solution across both commercial and institutional developments.
Globally, ENGIE operates 100 district cooling networks, including leading projects in Southeast Asia such as the Megajana DCS in Cyberjaya, Malaysia, Northgate DCS in the Philippines; and Punggol Digital District DCS in Singapore – demonstrating a consistent track record in delivering reliable, efficient, and low-carbon energy solutions.
