IJM Construction bags RM331.7mil Iskandar Puteri Data Centre contract


KUALA LUMPUR: IJM Corp Bhd’s wholly-owned subsidiary, IJM Construction Sdn Bhd has clinched a RM331.7mil contract to design and construct Block 2 of the Iskandar Puteri Data Centre for TM Technology Services Sdn Bhd.

The project in Johor encompasses the foundation, sub-structure, super-structure, building works, mechanical and electrical services, fit-out works, testing and commissioning. The data centre aims to achieve Uptime Institute Tier III certification, IJM Corp said in a statement.

Construction of the data centre will begin in July 2024 and is slated for completion by the third quarter of 2025.

"The data centre sector is rapidly expanding, driven by the exponential growth of cloud computing and the need for robust, scalable infrastructure. Our involvement in the data centre construction market signifies our commitment to innovation and adaptability in meeting the needs of high-tech industries. The Iskandar Puteri Data Centre will showcase our ability to execute complex, high-speed developments critical to Malaysia’s digital infrastructure growth,” group CEO and managing director Lee Chun Fai said.

He added that this data centre project is a strategic milestone for IJM Construction, diversifying its portfolio and enhancing capabilities in high-tech construction.

“Data centres are critical as the backbone of digital infrastructure, and this project paves the way for IJM to become a key player in this essential sector,” Lee said.

IJM noted that the Malaysian data centre market is rapidly growing, positioning the country as a key hub supported by its strategic location and infrastructure.

This expansion offers IJM Construction substantial growth opportunities. Leveraging its internal supply chain, including spun piles and industrialised building systems from IJM’s industry division, the group is well-positioned to capitalise on these opportunities.

In the last financial year, 25% of the industry division’s spun piles were supplied to data centres, logistics warehouses, and electrical and electronics manufacturing projects, enhancing IJM's ability to deliver projects efficiently and sustainably.

“This recent contract for the Iskandar Puteri Data Centre, combined with the RM962mil secured last week for the logistics hub at Section 15, Shah Alam, and the semiconductor manufacturing facility for Siliconware Precision Malaysia Sdn Bhd in Penang, has strengthened IJM Construction's order book to RM7.3bil,” IJM said.

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