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Sunway Construction Secures $249M Johor Data Center Contract from US Tech Giant

By: IDCNOVARegion: Southeast Asia
Malaysian builder Sunway Construction (SunCon) has landed a new data center project in Johor worth approximately RM1.1 billion (US$249 million), reinforcing its position as a key contractor in Southeast Asia's rapidly expanding digital infrastructure market.

In a stock exchange filing on Monday, SunCon announced that a wholly-owned subsidiary had received a letter of award from a US-headquartered multinational technology corporation. The scope of work covers mechanical, electrical and plumbing (MEP) fit-out services, a critical component in the construction of high-specification data centers. The identity of the client and the precise location of the facility were not disclosed.

According to The Star, construction has already commenced and is scheduled for completion by the fourth quarter of 2027. The project adds to SunCon's growing portfolio of data center-related contracts, which have become a major growth driver for the company amid a regional boom in cloud and AI infrastructure investment.

The latest award brings SunCon's total new orders for the current financial year to RM5.8 billion, while its outstanding order book now stands at RM10.4 billion, as reported by the New Straits Times. The company earlier this year secured RM664.4 million in additional works for two data center-related substation projects in Johor, underscoring the state's emergence as a preferred hub for hyperscale developments.

SunCon is one of four listed entities under Sunway Group, a diversified conglomerate with interests spanning real estate, healthcare, education and infrastructure. The group is controlled by Jeffrey Cheah, who was ranked by Forbes earlier this year as Malaysia's eighth-richest person with an estimated net worth of US$5.3 billion.

Shares of SunCon have climbed more than 37% year-to-date, giving the company a market valuation of RM10.43 billion, according to The Edge Malaysia. Analysts view the sustained flow of data center contracts as a key catalyst for the company's earnings outlook, as demand for digital infrastructure continues to outpace supply across the region.