Gamuda bags RM1.74bil contract for data centre

The data centre will be on 19.83ha within the 607ha Elmina Business Park.

PETALING JAYA: Gamuda Bhd, through its wholly owned subsidiary, Gamuda Engineering Sdn Bhd has secured a RM1.74bil contract for the construction and development of a hyperscale data centre in Elmina Business Park, Selangor.

In a statement, the property developer said the project will consist of two phases – the construction and mechanical work and electrical and plumbing fit-out.

“Gamuda, through its wholly owned subsidiary Gamuda Engineering will be responsible for the construction, completion, testing, and commissioning of the hyperscale data centre and associated ancillary facilities.

“This phase has a contract value of RM815mil and is scheduled to begin on May 27, 2024, with a target completion date of February 27, 2026,” the group said.

The second phase will be a separate contract valued at RM928.6mil which is set to cover the fit-out, testing, and commissioning of the data centre’s mechanical, electrical, and plumbing (MEP) systems in Elmina Business Park 1A.

“This phase is expected to commence on July 1, 2025 and be completed by Sept 9, 2026,” the group said.

Elmina Business Park is owned by Sime Darby Property.

Pearl Computing is a private limited company incorporated in Malaysia, and is a wholly owned subsidiary of Raiden Apac Pte Ltd, a Singapore-incorporated company, and is part of a US-headquartered multinational technology corporation.

Sime Darby Property will manage the design and development of the asset, including infrastructure planning and construction to ensure that the facility is customised according to the lessee’s specifications.

The project is set to break ground in the second quarter of this year with a completion tagged for 2026.

The data centre will be on 19.83ha within the 607ha Elmina Business Park.

The group said upon completion, both parties will enter into a 20-year lease valued at up to RM2bil, with options to renew for two additional five-year terms.

Sime Darby Property group managing director Datuk Azmir Merican said the project will enable them to broaden its investment and asset management portfolio and align with its strategy to grow recurring income.

At market close yesterday, Gamuda closed up five sen or 0.83% at RM6.05, with a market capitalisation of RM16.78bil.

Sime Darby Property closed at RM1.24, a six-year high, valuing it at RM8.43bil.

Malaysia is witnessing major investments in new data centres driven by demand from digitalisation, geopolitics and expectations for the potential of artificial intelligence (AI).

There are some 1,146.2MW of known proposed new data centre capacity in Malaysia.Microsoft intends to invest some US$2.2bil in cloud computing and AI in Malaysia over the next four years. The hyperscaler, via its local unit, has acquired land in Johor for the purpose.