Maybank Investment Bank Bhd has estimated RM10 billion (US$ 2.35 billion) worth of data centre (DC) jobs with a combined capacity of around 500 megawatts (MW) to be awarded soon, despite the United States potentially restricting artificial intelligence (AI) chip shipments to Malaysia, according to Bernama, Malaysia’s national news agency.
In a note today, Maybank IB said the tenders involve four DC jobs with— two each by Eco World Development Group Bhd (ECW) and Sime Darby Property Bhd (SDPR) — to be leased to Pearl Computing, a firm backed by Google, an American search engine giant.
“Utilising a benchmark of RM20 million/MW, we estimate that there will be about RM10 billion of jobs to be won comprising RM5 billion for core and shell and RM5 billion for mechanical, electrical and plumbing (MEP) works.
“We understand that ECW and SDPR will award the core and shell jobs while Pearl Computing will award the MEP jobs,” it said.
Assuming a 10 per cent pretax margin, Maybank IB has estimated about RM1 billion of pretax profits to be generated. Tender results are expected to be announced over the next two months.
The investment bank also said Gamuda Bhd (GAM), IJM Corporation Bhd and Sunway Construction Group Bhd (SCGB) are strong contenders because their industrialised building systems (IBS) allow them to build DCs fast with precast panels.
“Although GAM won the first job to build the first Pearl Computing-affiliated DC in Malaysia, assisted Pearl Computing in acquiring 389 acres in Port Dickson, Negeri Sembilan, but despite its close affiliation with Pearl Computing’s parent at the Gamuda AI Academy, GAM does not expect to win all four tenders,” the note said.
Nonetheless, it said GAM is best positioned to win most of them because it has the largest IBS manufacturing capacity and experience in constructing and delivering DCs.
Maybank IB believes SCGB has the most upside if it wins more DC jobs than expected.
