IJM Corp Secures RM331.7 Million Contract for Data Centre in Johor
IJM Corp Bhd (KL) has successfully secured a significant contract valued at RM331.7 million to design and build a data centre for a subsidiary of Telekom Malaysia Bhd (KL) in Iskandar Puteri, Johor. This project, known as Block 2 of the Iskandar Puteri Data Centre, marks a strategic milestone for IJM Corp and highlights its growing capabilities in high-tech construction.
Project Details
The contract was awarded by TM Technology Services Sdn Bhd to IJM Construction Sdn Bhd, a wholly owned subsidiary of IJM Corp. The construction of the data centre will commence in July 2024, with completion slated for the third quarter of 2025. The data centre aims to achieve Tier III certification under the Uptime Institute’s Tier Classification System, ensuring that maintenance can be performed without downtime due to its redundant systems.
Expanding in the Data Centre Sector
Lee Chun Fai, IJM group chief executive officer and managing director, emphasized the significance of this project: “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.”
This project diversifies IJM Construction’s portfolio and enhances its capabilities in high-tech construction. The group expects this expansion to provide significant growth potential.
Boost to IJM Construction’s Order Book
This contract, along with recent wins including a RM962 million contract for a logistics hub in Shah Alam and a semiconductor manufacturing facility in Penang, has significantly boosted IJM Construction’s order book to RM7.3 billion. By leveraging its internal supply chain capabilities, including spun piles and industrialized building systems from IJM’s industry division, the group is well-positioned to capitalize 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. This enhances IJM’s ability to deliver projects efficiently and sustainably.
Market Performance
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, reflecting strong investor confidence in IJM Corp’s strategic direction and growth prospects.
Conclusion
IJM Corp’s latest contract to build a Tier III data centre in Johor underscores its commitment to innovation and adaptability in the high-tech construction sector. This project not only diversifies IJM’s portfolio but also positions the company for significant growth in the rapidly expanding data centre market. With a robust order book and strong internal capabilities, IJM Corp is well-prepared to meet the evolving needs of high-tech industries.
