KUALA LUMPUR (Oct 24): Sime Darby Property Bhd (KL:SIMEPROP) has awarded a RM1.26 billion contract to IJM Construction Sdn Bhd, a wholly-owned subsidiary of IJM Corp Bhd (KL:IJM), for the main building works of a hyperscale data centre at its Elmina Business Park in Selangor.

The contract, awarded via Sime Darby Property’s wholly-owned unit Sime Darby Property (EBP Asset II) Sdn Bhd, encompasses the construction, completion, testing and commissioning of the facility’s core and shell, as well as associated infrastructure.

Construction is scheduled to start in the fourth quarter of this year, with completion targeted for the second quarter of 2027. The award follows a competitive tender process.

Spanning 77 acres, the hyperscale data centre forms part of a long-term build-and-lease agreement signed in December 2024 with Pearl Computing Malaysia Sdn Bhd, a subsidiary of Raiden APAC Pte Ltd.

“This contract award marks a significant milestone in our journey to develop Malaysia’s next-generation digital backbone. We are building a high-tech, mission-critical asset to meet the evolving demands of the global digital economy,” Sime Darby Property group managing director and CEO Datuk Seri Azmir Merican said.

Sime Darby Property added that the hyperscale facility aligns with its broader vision to position the Elmina Business Park as a premier hub for industrial and technology-led enterprises. The development leverages its strategic location, integrated ecosystem and modern infrastructure to attract both domestic and international corporations.

As at Friday’s close, Sime Darby Property’s shares held steady at RM1.36, giving the group a market capitalisation of RM9.25 billion. The stock has fallen 19.5% year to date. IJM Corp Bhd shares also closed unchanged at RM2.58, valuing the group at RM9.41 billion. Year to date, IJM has declined 15.1%.