Hyperscale data center boom in Malaysia continues to accelerate with Sunway Construction Group (SunCon) securing a RM1.75 billion ($442 million) contract to deliver a new hyperscale facility in Bandar Serendah. The award was announced in a bourse filing. It is also a show of the deepening presence of global cloud operators in the Klang Valley region, even as parallel projects emerge elsewhere in Malaysia.

Overview of SunCon Data Center in Malaysia

The contract has been awarded to SunCon’s wholly owned subsidiary, Sunway Construction Sdn Bhd, by an undisclosed international hyperscale client.

Scope of works includes core and shell construction and campus-wide infrastructure. It also includes mechanical, electrical and plumbing (MEP) fit-out.

Construction is scheduled to start in Q3 2026 and reach completion by Q3 2028.

Project Location

Bandar Serendah sits within the broader Greater Kuala Lumpur data center corridor. The corridor has emerged as a key hyperscale cluster alongside Cyberjaya and Elmina. This location benefits from proximity to Kuala Lumpur’s enterprise and network and its established grid and fiber infrastructure. Additionally, the availability of industrial land, when compared to other places such as Singapore, is also another benefit this corridor enjoys.

The award also gives SunCon a competitive edge against other domestic rivals such as Gamuda Berhad and IJM, all of whom are actively securing hyperscale contracts amid a surge in regional demand.

Project Cost

Contract value: RM1.75 billion ($442 million)

Contract type: Full construction including MEP fit-out

Earnings impact: Positive contribution expected from FY2026 onwards

While the company noted exposure to material price volatility, it expects risks to be manageable given prior experience in similar digital infrastructure builds.

Project Fact Sheet

Start: Q3 2026

Completion: Q3 2028

Scope: Infrastructure and full MEP fit-out

Outlook on SunCon Data Center in Malaysia

The Serendah award underscores how Selangor remains Malaysia’s most mature hyperscale market, even as new nodes emerge elsewhere. This is as demand continues to be driven by AI workloads and cloud expansion. Hyperscaler diversification away from land- and power-constrained Singapore is also another key driver.

Notably, this project also forms part of a wave of concurrent hyperscale builds, including Gamuda’s data center in Port Dickson which is linked to a US multinational tech company. This points to how Malaysia is turning into a multi-node data center market rather than a single-cluster market.