ENGIE, a global low-carbon energy solutions provider, and Sunway Property, the property arm of Sunway Group, have announced the expansion of their district cooling partnership under the joint venture ENGIE-Sunway DCS Sdn Bhd. The upgraded network will now supply cooling to multiple facilities under Sunway Education Group (SEG), including Sunway University and Sunway College.
The new expansion builds on the first district cooling system (DCS) launched in June 2025, which currently supplies chilled water to the RM2 billion Sunway Square development comprising Grade A offices, retail, a performing arts centre and a university block. With the Sunway Square Corporate Towers completed and tenants moving in, the retail zone is set to open in December 2025, followed by the performing arts centre in 2026.
3,000 RT Cooling Capacity for Eight Education Buildings
Scheduled for completion in September 2026, the expanded DCS network will deliver up to 3,000 refrigeration tonnes (RT) of cooling capacity across eight SEG buildings, including the new Engineering Annex, the Faculty of Engineering & Technology, and the Graduate Centre.
The system is expected to meet 60% of peak cooling demand and 75% of annual cooling requirement for the campuses, reducing carbon emissions by 29%. Over the 24-year contract period, this represents more than 48,000 tonnes of CO₂ avoided.
The initiative directly supports Malaysia’s national climate target of cutting greenhouse gas emissions by 45% by 2030 under the Paris Agreement.
Strengthening Malaysia’s Low-Carbon Urban Infrastructure
The expansion reinforces ENGIE and Sunway Property’s long-term strategy to scale low-carbon urban infrastructure across Sunway City Kuala Lumpur. It follows the success of the first ~7,000 RT DCS plant, which currently serves four commercial buildings at Sunway Square and has demonstrated strong energy and carbon savings in a dense, mixed-use setting.
“This expansion marks another step forward in shaping the next generation of sustainable cities,” said Jacques Boonen, Managing Director for Southeast Asia, ENGIE. “It shows that sustainability and growth can move together, and that advanced cooling solutions can accelerate Malaysia’s low-carbon transition.”
Chong Sau Min, CEO of Sunway Property (Central & Northern Region), said the upgrade reflects Sunway’s commitment to integrating sustainability into every layer of township planning. “We’re scaling low-carbon infrastructure across Sunway City Kuala Lumpur, strengthening our ecosystem for future generations,” he added.
Supporting Academic Innovation and Real-World Learning
Professor Dato’ Elizabeth Lee, CEO of Sunway Education Group, said the partnership strengthens the institution’s commitment to sustainable campus operations. “It enhances energy efficiency, reduces emissions and gives our academics and students direct exposure to real-world innovation,” she said.
Engineering Design Sets New Standard for Space-Efficient Cooling
The first DCS facility, commissioned in mid-2025, features a Thermal Energy Storage (TES) tank functioning as a “mechanical battery” that improves system efficiency and resilience. In a unique engineering solution, ENGIE integrated the TES tank within Sunway Square’s car ramp spiral, preserving valuable urban land while blending into the site’s architecture.
The design sets a new benchmark for sustainable infrastructure integration in high-density environments.
A Model for Scalable, Low-Carbon Development
The Sunway Square DCS is expected to deliver around 20% savings in air-conditioning energy cost and emissions. It forms the foundation of a wider district cooling network that will support both commercial and institutional developments within Sunway City.
ENGIE currently operates 100 district cooling networks globally, including Megajana (Cyberjaya), Northgate (Philippines) and the Punggol Digital District network in Singapore, demonstrating proven expertise in delivering efficient, low-carbon cooling systems at scale.
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