KUALA LUMPUR, April 2026 — Sunway Construction Group Bhd has secured a significant RM1.75 billion contract to develop a hyperscale data centre in Selangor, further strengthening its position as one of Malaysia’s leading infrastructure players in the fast-growing digital economy sector.
According to a filing with Bursa Malaysia, the contract was awarded to its wholly owned subsidiary, Sunway Construction Sdn Bhd, by an international hyperscaler—a term typically used for global technology giants operating large-scale cloud computing infrastructure.
The project will be located in Bandar Serendah, Selangor, and will involve the full scope of construction works, including core structural development, campus infrastructure, and mechanical, electrical, and plumbing (MEP) systems required for advanced data centre operations.
Construction is scheduled to begin in the third quarter of 2026 (Q3 2026) and is expected to be completed by the third quarter of 2028 (Q3 2028).
The project scope includes:
- Core and shell building construction
- Data centre campus infrastructure development
- High-spec mechanical and electrical installations
- Testing and commissioning of hyperscale systems
The development is designed to support high-performance computing, cloud storage, and AI-driven workloads, reflecting the rising global demand for digital infrastructure.
The latest contract significantly strengthens Sunway Construction’s financial position, adding further momentum to its already robust project pipeline.
Analysts note that the group’s outstanding order book is now estimated at around RM8.7 billion, with data centre projects forming a major portion of its growth strategy.
This latest win also reinforces Sunway’s strategic shift toward:
- Digital infrastructure
- High-value industrial construction
- Hyperscale technology facilities
Malaysia has emerged as one of Southeast Asia’s fastest-growing hubs for data centre investments, driven by:
- Global expansion of cloud computing
- Artificial intelligence (AI) infrastructure demand
- Strategic location within ASEAN
- Government incentives for digital economy projects
Selangor, Johor, and Johor-Pahang industrial corridors have become key hotspots for hyperscale developments, attracting major global technology firms.
Industry analysts say that Malaysia’s competitive energy costs and stable political environment make it attractive for long-term data centre investments.
Strategic Importance of the Deal
This RM1.75 billion contract reflects several broader trends in Malaysia’s construction and technology sectors:
1. Shift Toward Digital Infrastructure
Traditional construction firms like Sunway Construction are increasingly transitioning toward high-tech infrastructure projects, particularly data centres.
2. Foreign Hyperscaler Investment
The involvement of an international hyperscaler highlights continued confidence from global tech giants in Malaysia’s infrastructure readiness.
3. Long-Term Revenue Visibility
Although the project will not immediately impact earnings, it is expected to contribute positively over the medium to long term, providing stable revenue visibility for the group.
The announcement further strengthens investor sentiment around Sunway Construction, which has benefited from a wave of hyperscale data centre contracts across Malaysia.
With AI, cloud computing, and digital transformation accelerating globally, analysts expect:
- Continued growth in construction demand for data centres
- Strong competition among Malaysian contractors
- Rising capital inflows into digital infrastructure
The RM1.75 billion hyperscale data centre deal marks another milestone in Sunway Construction’s expansion into high-value digital infrastructure projects.
As Malaysia positions itself as a regional data centre hub, companies like Sunway are expected to play a central role in building the backbone of the country’s digital economy.
