Sunway Construction Secures Major Data Centre Contract
Singapore-based and global technology companies are accelerating their data centre investments in Southeast Asia, and Malaysia remains a key hub. Sunway Construction Group Bhd (SunCon) has announced a significant milestone, securing a contract valued at about RM570 million from a multinational technology corporation based in the United States. The project, awarded to Sunway Construction Sdn Bhd (SCSB), focuses on the core and shell work for a new data centre facility in Malaysia.
Scope and Significance of the Project
The contract covers the core and shell development, which typically includes structural work, exterior envelope, and essential building services installation necessary to make the data centre ready for fit-out. While the interior fit-out is not part of this award, the core and shell foundation will provide the robust platform required for high-density computing and storage capabilities. The deal underscores the strong demand for energy-efficient, scalable data centre infrastructure in the region, driven by cloud services, digital transformation, and the growing needs of multinational corporations.
SunCon’s Role and Capabilities
Sunway Construction Sdn Bhd, a wholly-owned subsidiary of Sunway Construction Group Bhd, has a track record of delivering complex projects across Malaysia. The RM570 million contract expands the group’s portfolio in data centre construction, showcasing its ability to manage large-scale, time-sensitive builds with stringent safety, quality, and sustainability standards. Industry observers note that this win aligns with SunCon’s strategy to diversify its revenue streams beyond traditional civil engineering works and to leverage its integrated construction capabilities to support high-tech facilities.
What This Means for SunCon
For SunCon, the project represents a meaningful contribution to revenue and project pipeline in a segment with steady demand. The core and shell phase is typically a pivotal part of data centre development, laying the groundwork for subsequent tenant fit-outs, electrical and mechanical systems, and advanced cooling technologies. Completion timelines are closely watched by investors and clients who require rapid delivery to support digital growth plans.
Market Context: Data Centres in Malaysia
Malaysia has emerged as a competitive arena for data centre development, buoyed by a stable regulatory environment, improving grid reliability, and supportive incentives for technology investments. The presence of a major US technology firm signals continued confidence from international players to expand in Southeast Asia, leveraging Malaysia’s connectivity and skilled workforce. Construction partners like SunWay Construction play a critical role in turning architectural blueprints into operational data hubs capable of supporting cloud platforms and enterprise applications.
Timeline and Next Steps
Specific timeline details for the core and shell development have not been disclosed publicly. However, typical milestones for such projects include site preparation, piling and foundation work, structural framing, envelope completion, and commissioning of essential utilities. SunCon will likely coordinate closely with the client, consultants, and local authorities to ensure compliance with safety, environmental, and building standards.
Industry Implications
The deal reinforces Malaysia’s position as a practical destination for data centre construction within the region. It also emphasizes the importance of reputable local contractors capable of executing high-specification projects for global tech firms. For SunCon, the win may bolster bidding credibility for future data centre opportunities, including regional expansions that require stringent performance and reliability criteria.
