Pranav Hotkar
Kuala Lumpur, Malaysia – June 22, 2026 - Malaysian electrical engineering specialist HE Group Berhad has secured a RM 102 million (~USD 24 million) subcontract to deliver core electrical systems for a data center project in Johor, further underscoring the state's position as the country's leading hub for hyperscale digital infrastructure.
The contract was awarded to HE Group's wholly owned subsidiary, Hexatech Engineering Sdn. Bhd., by an engineering, procurement, and construction management (EPCM) company involved in large-scale infrastructure projects. The client's identity was not disclosed. Under the agreement, Hexatech will supply, install, test, and commission the main electrical works for the data center, with completion scheduled for September 19, 2027.
The latest award increases HE Group's outstanding order book to approximately RM275 million as of June 22, 2026, providing the company with improved revenue visibility over the next several years. Management said the project is expected to contribute positively to earnings throughout the construction period.
While details of the data center developer and facility capacity were not disclosed, the contract highlights continued momentum in Johor's data center construction market. The southern Malaysian state has emerged as Southeast Asia's fastest-growing hyperscale market, attracting billions of dollars in investment from global cloud providers and colocation operators seeking expansion opportunities outside land- and power-constrained Singapore.
Electrical infrastructure represents one of the most critical components of modern AI-ready data centers, where uninterrupted power delivery is essential for supporting high-density GPU clusters and mission-critical cloud workloads. Contractors specializing in medium- and low-voltage electrical systems, switchgear installation, and commissioning have seen growing demand as hyperscale campuses become larger and more power-intensive.
The HE Group award follows a series of recent data center-related contract announcements in Malaysia, reflecting a broader surge in construction activity across Johor. Engineering firms have increasingly secured specialized packages covering electrical systems, fuel infrastructure, mechanical works, and utility connections as multiple hyperscale campuses move into active development.
Industry analysts expect Malaysia's data center pipeline to remain robust as artificial intelligence accelerates demand for high-capacity digital infrastructure. AI training and inference clusters require substantially higher power densities than conventional enterprise facilities, increasing the importance of resilient electrical distribution, backup power systems, and efficient commissioning processes.
For HE Group, the Johor project expands its portfolio of data center infrastructure work following previous awards in the sector. As Malaysia continues to strengthen its position as a regional digital infrastructure destination, the company is likely to benefit from sustained investment in mission-critical electrical systems supporting the next generation of hyperscale and AI-focused facilities.
