Sunway Construction secures additional RM920.8 million Johor data center works

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Sunway Construction secures Johor contract

Highlights

Sunway Construction secures RM920.8 million in additional Johor data center works from a U.S. technology company, with completion expected in the first quarter of 2028.
Sunway Construction’s new orders year to date total RM8.06 billion, with its outstanding order book rising to RM11.7 billion.
Sunway Construction’s second-quarter net profit rises 23.5% to RM103.59 million despite a 31.1% decline in revenue to RM1.02 billion.

This article was translated from the original. Read the original version by our correspondent here.

Details of the contract award and completion schedule

As reported by The Edge Malaysia, citing a Bursa Malaysia filing, the additional works worth RM920.8 million were awarded by a multinational technology company headquartered in the U.S. to its wholly owned subsidiary, Sunway Construction Sdn Bhd.

The letter of award also serves as an instruction to commence work, with completion targeted for the first quarter of 2028. Sunway Construction said the additional works are expected to contribute positively to its earnings for the financial year ending 31 Dec 2026 and beyond, subject to unforeseen circumstances.

With this latest contract, the group’s new orders secured year to date have reached RM8.06 billion, while its total outstanding order book has risen to RM11.7 billion.

Impact on the group’s performance and the sector

The contract win comes as Johor continues to strengthen its position as a key regional data center development hub, supporting a pipeline of high-tech construction work for local players.

For the second quarter ended 30 Jun 2026, Sunway Construction’s net profit rose 23.5% to RM103.59 million from RM83.89 million a year earlier, driven by improved profit margins across its operating segments. However, revenue fell 31.1% to RM1.02 billion from RM1.48 billion, mainly due to lower construction revenue.

Sunway Construction shares closed four sen, or 0.52%, lower at RM7.68 on Wednesday, giving the group a market value of RM10.2 billion.

Approval of 27 data center projects under the Data Center Task Force (DCTF) through July 2026 has been a key driver of the country’s digital infrastructure development, with the greatest concentration in Johor. In our earlier coverage, we detailed the investment value, project implementation status, projected high-skilled job opportunities and the minimum 30% local-content requirement, which is monitored regularly and further supports sustained demand for data center construction and support contracts.

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