This article first appeared in The Edge Malaysia Weekly on October 19, 2026 - October 25, 2026

Construction giant IJM Corp Bhd (KL:IJM) is understood to have emerged as the front runner to win a contract worth about RM500 million to build a data centre for K2 Strategic Infrastructure Malaysia Sdn Bhd, a wholly-owned subsidiary of the Kuok group, in Johor, sources familiar with the matter tell The Edge.

While details are scarce, two separate sources confirmed that the K2 contract is a done deal. One says, “It’s in the bag, it’s a matter of time before it’s announced.” The other source says IJM beat a number of companies to secure the contract, and that an announcement could be made as early as this week, if it all pans out.

IJM executives could not be contacted for comment after office hours last Friday.

K2, a turnkey provider of hyperscale data centre campuses, has two existing data centres in Kulai, Johor, namely JHR04 and JHR01-03, with a capacity of 234mw designed capacity. Other than in Johor, K2 also has four data centres in Dublin, Ireland, one in Cikarang Indonesia, and another in Rayong, Thailand.

A leader in the global data centre industry, it is run by managing director and CEO Kuok Meng Wei, the 42-year-old grandson of billionaire tycoon, Robert Kuok Hock Nien, who turned 103 earlier this month.

According to news reports, Meng Wei’s mandate is to grow K2’s capacity to 1,200mw by 2030, marking a tenfold increase from current levels.

On its website, K2 says it has 114mw capacity in operation, 82mw capacity under construction and about 350mw deemed to be in the “pre-construction project phase”.

IJM appears to be on a roll, with its construction arm securing a number of new contracts lately. Other businesses under IJM’s belt include property development, port operations, toll road concessions, manufacturing and quarrying.

It is worth noting that only last week, IJM secured a RM1.23 billion contract from AT&S Austria Technologie & Systemtechnik (Malaysia) Sdn Bhd to construct semiconductor manufacturing facilities at the Kulim Hi-Tech Park in Kedah. The Austrian contract came on the back of more than RM900 million in jobs for semiconductor and medical technology projects, secured since August 2026.

Another noteworthy contract secured in April is a RM658 million agreement with Sime Darby Property Bhd (KL:SIMEPROP) for the construction of a hyperscale data centre in Elmina Business Park, Selangor.

When IJM announces the half-a-billion ringgit K2 data centre construction contract, its existing construction order book will swell to more than RM11 billion, with its current year order book replenishment at RM3.5 billion.

The company’s construction tender book is at about RM18 billion, and includes the Penang airport expansion and a RM1 billion civil servant housing project in Nusantara, Indonesia, among others.

IJM could get more aggressive in replenishing its order book in the next few months, given plans to float its construction arm early next year.

For its first financial quarter ended June 30, 2026, IJM chalked up a net profit of RM137.4 million on the back of RM2.29 billion in revenue. For the corresponding period a year ago, IJM registered a net profit of RM95.6 million on revenue of RM1.73 billion.

In the notes accompanying its financial statement, IJM says the better showing was driven primarily by the construction division, among others.

On its prospects for the financial year ending March 31, 2027, IJM says, “The construction division is expected to perform strongly in FY2027 underpinned by its strong order book of RM14.5 billion (including our share from joint ventures and associates) comprising hyperscale data centres, advanced manufacturing and warehousing facilities and road infrastructure projects … the group is confident it will perform better operationally this financial year.”

As at end-June this year, IJM had deposits, cash and bank balances of RM2.26 billion while on the other side of the balance sheet the company had short-term debt commitments of RM2.48 billion and long-term borrowings of RM1.25 billion. It is noteworthy that IJM had retained profits of RM4.11 billion.

IJM’s net cash flow from operating activities was RM353 million for the three months ended June 2026.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.