• Last Friday, the construction company announced that it has secured a RM1.26 billion contract for the main building works of a hyperscale data centre at Elmina Business Park.

KUALA LUMPUR (Oct 27): IJM Corporation Bhd (KL:IJM) could win another data centre related job at Elmina Business Park following its latest contract announcement, analysts flagged.

The company stands a strong chance to secure the mechanical, engineering and plumbing (MEP) works to be awarded at a later stage given that it is the main contractor for the core and shell portion, CGS International said in a note on Monday.

“We think IJM will also be a front runner for this,” the research house said.

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Sime Darby Property awards RM1.26b contract to IJM for hyperscale data centre at Elmina Business Park

IJM Corp has rebounded more than 40% from April lows during the global tariff turmoil. A majority of analysts are still bullish with 11 ‘buy’, six ‘hold’, and no ‘sell’ calls. The average target price is RM3.41, according to Bloomberg, suggesting potential return of up to 33% in the next 12 months.

Last Friday, the construction company announced that it has secured a RM1.26 billion contract for the main building works of a hyperscale data centre at Elmina Business Park. Construction is slated to start in the fourth quarter of this year, with completion targeted for the second quarter of 2027.

The MEP portion of the project could translate into an additional RM1 billion in potential contract value for IJM Corp from the same data centre development in the future, taking the total awarded contract value to RM2.5 billion, according to Hong Leong Investment Bank’s estimates.

“This development marks a significant progress in penetrating top-of-the-range hyperscale clientele, potentially indicative of its chances for existing tenders as well as positioning IJM to contend for the planned 1GW campus build-out later on,” the research house added.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.

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