Gamuda, MN Holdings tipped as top winners in RM10b data centre jobs—Maybank IB

• The firm said Eco World Development Group Bhd (KL:ECWLD) and Sime Darby Property Bhd (KL:SIMEPROP) will award four major data centre projects—two each—within the next two months.

KUALA LUMPUR (July 17): Gamuda Bhd (KL:GAMUDA) and MN Holdings Bhd (KL:MNHLDG) are set to benefit most from RM10 billion worth of upcoming data centre contracts, according to Maybank Investment Bank (Maybank IB), despite concerns over new US AI chip export restrictions.

The firm said Eco World Development Group Bhd (KL:ECWLD) and Sime Darby Property Bhd (KL:SIMEPROP) will award four major data centre projects—two each—within the next two months. The two Eco World data centres will be located in Eco Business Park V in Puncak Alam, Selangor, while the two Sime Darby property data centres will be located in Elmina Business Park in Sungai Buloh, Selangor. The facilities, which will have a combined capacity of 500 megawatts will be leased to Pearl Computing, which is believed to be linked to Google. The contracts are split evenly between core and shell (RM5 billion), and mechanical, electrical and plumbing (MEP) works (RM5 billion). Eco World and Sime Darby Property are expected to award the core and shell jobs while Pearl Computing will dish out the MEP contracts.

Maybank IB said Gamuda is seen as the front-runner for core and shell jobs due to its industry-leading precast capacity (2.6 million m2) and strong track record, including its ongoing work on DC1 in Elmina. Maybank IB highlighted Gamuda’s speed and scale, giving it an edge over rivals IJM Corp Bhd (KL:IJM) and Sunway Construction Group Bhd (KL:SUNCON).

It said if IJM and Gamuda win RM2 billion more in data centre jobs than expected, their target prices may only rise slightly—by 5% to RM3.34 (IJM) and 4% to RM5.57 (Gamuda)—due to their larger earnings base.

However, if Sunway Construction secures RM1 billion more than expected, its target price could rise 12% to RM7.52, based on the same 24 times financial year 2026 price-to-earnings ratio.

MN Holdings, a key player in underground utilities and MEP works, is expected to benefit once subcontracting begins, typically a year after main construction. Gamuda previously awarded RM250 million in MEP work across five firms—including MN Holdings—for DC1.

Maybank IB said despite concerns over the AI chip ban, MN Holdings remains unaffected as its key clients are continuing with expansion plans.

The company is also benefiting from Tenaga Nasional Bhd’s (KL:TENAGA) increased grid spending, which supports long-term substation and cabling work. Management expects the data centre boom to continue through 2030, with additional growth from upcoming large scale solar and battery energy storage system project bids. Backed by a RM1.2 billion order book and RM1.8 billion in tenders, MN Holdings is also capitalising on increased grid investment by Tenaga. Maybank IB maintains a "buy" rating with a target price of RM1.69 for MN Holdings, to be potentially raised to RM1.80 if its success rate rises to 60% from 30%.

The data centre projects are part of a broader infrastructure push, with investors advised to watch both main contractors like Gamuda and MEP players like MN Holdings for exposure to the high-growth data centre industry.

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