KUALA LUMPUR (Jan 3): Sunway Construction Group Bhd (SunCon) has entered into a RM1.7 billion contract to provide general contractor services for a data centre construction project in Sedenak Tech Park (STeP), Johor.

The construction firm’s wholly owned subsidiary Sunway Construction Sdn Bhd entered into the contract with Yellowwood Properties Sdn Bhd on Dec 31, 2022, according to SunCon’s filing on the same day.

SunCon noted that the contract’s scope of works includes: design and build for piling and structural precast concrete works; data centre main building architecture works; mechanical and electric services, telecommunications, control and security installation and associated works, including primary plant; and external ancillary works consisting of roads, surface water drainage, sewer drainage, external water reticulation, external mechanical and electrical services, fencing, gates and landscape works.

“The works are expected to be completed by the third quarter of 2024 (3Q2024),” SunCon said.

SunCon said that barring any unforeseen circumstances, the contract is expected to contribute positively to the group's earnings for the financial year ending Dec 31, 2023 (FY2023), onwards.

“The total new projects secured by the group this year (2022) including the abovementioned works amounted to RM2.6 billion,” SunCon added.

Shares in SunCon ended three sen or 1.92% higher at RM1.59, giving the construction group a market capitalisation of RM2.06 billion.