KUALA LUMPUR (June 26): IJM Corp Bhd (KL:IJM) has secured a contract to design and build a data centre for a subsidiary of Telekom Malaysia Bhd (KL:TM) in Iskandar Puteri, Johor, for RM331.7 million.
The project — known as Block 2 of the Iskandar Puteri Data Centre — was secured from TM Technology Services Sdn Bhd via its wholly owned IJM Construction Sdn Bhd, IJM said in a statement on Wednesday.
"Construction of the data centre will begin in July 2024 and is slated for completion by the third quarter of 2025," said IJM.
The data centre aims to achieve Tier III certification under the Uptime Institute's Tier Classification System, which is the international standard for data centre performance. A Tier III certification means the data centre's maintenance can be done without downtime due to its redundant systems.
“The data centre sector is rapidly expanding, driven by the exponential growth of cloud computing and the need for robust, scalable infrastructure. Our involvement in the data centre construction market signifies our commitment to innovation and adaptability in meeting the needs of high-tech industries," said IJM group chief executive officer and managing director Lee Chun Fai.
"This data centre project is a strategic milestone for IJM Construction, diversifying our portfolio and enhancing our capabilities in high-tech construction,” Lee added.
The group expects this expansion to provide significant growth potential for IJM Construction.
This latest contract, combined with the RM962 million worth of jobs that IJM secured last week for a logistics hub in Shah Alam and a semiconductor manufacturing facility in Penang, have boosted IJM construction’s order book to RM7.3 billion.
"By leveraging its internal supply chain capabilities, including spun piles and industrialised building systems from IJM’s industry division, the group is well-positioned to capitalise on these opportunities. In the last financial year, 25% of the industry division’s spun piles were supplied to data centres, logistics warehouses, and electrical and electronics manufacturing projects, enhancing IJM's ability to deliver projects efficiently and sustainably," IJM added.
The group's shares closed four sen or 1.34% higher at RM3.03 on Wednesday, valuing the company at RM10.62 billion. The stock has gained over RM1 or 60% year to date.