KUALA LUMPUR — IJM Corp Bhd has secured a RM1.26 billion contract to build a large hyperscale data centre in Selangor, a win analysts say keeps the construction conglomerate on course to meet its RM6 billion–RM8 billion job target for the 2026 financial year (FY2026).
According to CGS International, construction of the new facility is scheduled to begin in the fourth quarter of 2025 and is expected to be completed by the second quarter of 2027.
The research house said the project marks IJM’s second data centre contract in three months and its fifth overall, lifting the company’s total forecast job wins for FY2026 to RM4.2 billion.
The latest addition brings IJM’s local order book to RM8.5 billion as of October 25, 2025.
“Having a tier-one hyperscaler as a new data centre end client is a major milestone for IJM; it will be a much-needed share price catalyst for the company,” CGS said in a note, reaffirming its “add” rating with a target price of RM3.61.
It added that IJM’s “strong construction franchise” and “synergistic spun concrete piles business” make it well positioned to capitalise on Malaysia’s growing demand for digital infrastructure.
Echoing the upbeat outlook, RHB Investment Bank said IJM’s expanding portfolio of data centre projects suggests the company is ready to take on more such contracts as it works towards completing earlier ones.
The bank noted that IJM has already submitted between four and six bids for new data centre projects across the Klang Valley and Johor in 2025.
“Telekom Malaysia’s data centre in Iskandar Puteri, Johor — which IJM is constructing — held its topping-out ceremony in July, indicating that its progress has reached a meaningful stage of completion,” RHB said.
It added that no changes were made to its earnings estimates since the latest win falls within its FY2026 job target assumption of RM6 billion.
The surge in data centre construction is being driven by increasing cloud adoption, artificial intelligence applications, and rising regional demand for digital services. — October 27, 2025