SunCon wins RM1.74b hyperscale data centre contract in Serendah

Sunway Construction Group Bhd (SunCon) has secured a RM1.739 billion contract to build a hyperscale data centre in Bandar Serendah, Selangor. The build-only contract boosts SunCon's total outstanding order book to RM13.4 billion and lifts new orders this year to RM9.8 billion.

PETALING JAYA (Nov 5): Sunway Construction Group Bhd (SunCon) has secured a RM1.739 billion contract to build a hyperscale data centre in Bandar Serendah, Selangor, lifting its new orders this year to RM9.8 billion.

In a Bursa Malaysia filing on Thursday (Nov 5), the group said its wholly owned subsidiary, Sunway Construction Sdn Bhd, had entered into a construction agreement that day with an unnamed international hyperscaler. SunCon’s total outstanding order book now stands at RM13.4 billion.

The build-only contract covers the construction, completion, testing and commissioning of the data centre. Its scope includes core and shell structures, campus infrastructure, and mechanical, electrical and plumbing fit-out works. Work is scheduled to begin in the fourth quarter of 2026, with completion targeted for the fourth quarter of 2028.

SunCon said the project is expected to contribute positively to group earnings from the financial year ending 2026 onwards, barring unforeseen circumstances. However, it is not expected to have any immediate material effect on earnings per share, net assets per share or gearing for the current financial year. The group said the project is subject to normal construction risks, including material price fluctuations, which it expects to mitigate through its subsidiary’s experience and expertise.

The latest award comes as CGS International has urged SunCon to diversify into government infrastructure, industrial projects and semiconductor factories, The Edge Malaysia reported. The research house warned that replacing data centre contracts could become harder when global artificial intelligence spending slows. Data centres account for 70% of SunCon’s RM13 billion tender book, spanning six clients, according to CGS. It forecasts earnings per share growth of 9% a year over FY2026–2028, trailing Gamuda and IJM.