2 days Ago
KUALA LUMPUR: IJM Corp Bhd 's maiden contract win in the date centre space is seen as a milestone for the firm as it makes its foray into a fast-growing market, say analysts. "In our view, while the data centre contract value is on the smaller side, it is a critical step for IJM to penetrate a booming data centre construction market where a mammoth 2.8GW is still in the pre-construction phase," said Hong Leong Investment Bank (HLIB) Research in a note.
The contract, secured from Telekom Malaysia, is worth RM331.7mil, for the construction of a data centre in Iskandar Puteri in Johor. The research firm believes that the contract win could open doors for IJM to higher-value opportunities in what appears to be a multi-year cycle for data centres.
HLIB cited IJM's current client, Telekom Malaysia, which has recently entered into a joint venture to develop a data centres with an initial capacity of 64MW and an ultimate capacity of 200MW. RHB Research is of the view that IJM may extend its thrust into the industrial building segment given the number of planned supplies of industrial properties surged to 1,372 units in 2023 versus less than 900 units in the previous five years. "Semiconductor facilities and warehouses may underpin the growth in industrial properties, backed by robust trends in investments with Malaysia recording a 13% year-on-year jump to reach RM83.
7bil in 1QCY24," said RHB in its company update. Kenanga Research, meanwhile, noted that IJM's latest contract win, its.
