Southern Steel (KLSE:SSTEEL) signed a three-year tenancy deal with Deep Source (PN) for the lease of land and existing buildings in Penang, Malaysia, for 917,250 ringgit a month.

The tenancy covers about 6.30 hectares of land and includes an existing steel plant, which Deep Source plans to use as a data center, according to a Monday Malaysian bourse filing.

The agreement is subject to, among other conditions, consent from the Penang State Authority and the Penang Development Corporation for the tenancy and data center use, it said.

Shares of Southern Steel jumped nearly 4% in recent trade.