Advancecon wins RM121.7m contract, bolstering data centre infrastructure push

NEGERI SEMBILAN (MUKIM LINGGI, PORT DICKSON), MALAYSIA, 27 SEPTEMBER 2026 —

Advancecon Lands RM121.7 Million Data Centre Infrastructure Deal, Cementing Role in Malaysia’s Digital Growth

KUALA LUMPUR, 10 July 2026 – Advancecon Holdings Berhad (Bursa: 5281), Malaysia’s leading earthworks and civil engineering contractor, has secured a RM121.7 million sub-contract to deliver critical enabling infrastructure for a data centre in Negeri Sembilan, marking another milestone in its expanding role within the country’s booming digital economy.

The contract, awarded to Advancecon’s wholly-owned subsidiary, Advancecon Infra Sdn Bhd (AISB), underscores the growing interdependence between data centre development and foundational infrastructure—particularly water supply, site preparation, and earthworks—without which Malaysia’s ambitious digital expansion risks operational bottlenecks.

The project, part of a 65 million-litre-per-day water supply scheme for a data centre in Mukim Linggi, Port Dickson, will be executed over 30 months, reinforcing Advancecon’s position as a key player in the infrastructure layer supporting Malaysia’s tech-driven industrial future.

The sub-contract, secured through an established Malaysian construction firm with over three decades of experience in large-scale infrastructure, forms part of a broader water supply initiative designed to sustain the operational demands of the data centre. Advancecon’s involvement extends beyond traditional earthworks, positioning the company as a critical enabler for Malaysia’s data centre sector—a priority area for both private investment and government-led economic diversification.

For Advancecon, the RM121.7 million award is the latest in a series of high-value contracts that have strengthened its order book to RM939 million as of the first half of fiscal year 2026, contributing to a 34.5% year-on-year rise in profit attributable to owners.

The project also aligns with the company’s strategic focus on selectively pursuing contracts that offer long-term earnings visibility and support Malaysia’s infrastructure needs, particularly in sectors like data centres, utilities, and industrial parks.

A Strategic Win for Malaysia’s Data Centre Ambitions

The data centre industry in Malaysia has surged in recent years, driven by government incentives, competitive electricity costs, and strategic geographic positioning as a regional digital hub. However, the sector’s rapid growth has exposed gaps in supporting infrastructure—particularly water supply, power distribution, and site readiness—which are essential for ensuring data centres can scale efficiently and maintain operational resilience.

Advancecon’s RM121.7 million contract directly addresses this challenge by providing the earthworks and civil engineering foundation for a data centre’s water supply infrastructure. The project’s 65 million-litre-per-day capacity highlights its scale, with the facility designed to meet the cooling and operational demands of modern data centres, which can consume water at rates exceeding 3 million litres per day for large-scale operations.

The contract’s 30-month timeline, beginning from the issuance of physical works instructions, reflects the complexity of integrating such infrastructure into data centre projects. Unlike traditional construction contracts, these enabling works must align precisely with the data centre’s phased development to avoid delays—a factor that has made Advancecon’s expertise in large-scale civil engineering particularly valuable.

Leadership Perspective: Strengthening Malaysia’s Infrastructure Pipeline

In a statement, Advancecon Managing Director Phum Boon Eng emphasized the contract’s significance beyond its financial value, framing it as validation of the company’s ability to deliver in high-stakes infrastructure environments.

“We are pleased to secure this RM121.7 million sub-contract, which further reinforces Advancecon’s position as a trusted earthworks and civil engineering partner for infrastructure projects that support Malaysia’s next phase of industrial and digital development,” Phum said. “This award is meaningful not only because of its size, but because it validates our ability to participate in critical infrastructure works that serve high-growth sectors like data centres.”

She added that the project allows Advancecon to contribute to a foundational element of Malaysia’s digital economy—a sector increasingly reliant on supporting infrastructure. “Data centres require reliable water, power, and site readiness to operate efficiently, and this contract enables us to play a key role in that ecosystem,” Phum explained. “For us, it strengthens our project pipeline, enhances earnings visibility, and aligns with our strategy of pursuing quality contracts that match long-term infrastructure demand.”

Phum also noted that the contract reflects continued confidence from industry partners in Advancecon’s execution capabilities, particularly in complex infrastructure environments. “We remain committed to delivering meaningful contributions to every project, enhancing our capabilities, and supporting our clients with solutions that drive long-term impact,” she said. “Our focus is on being a value-adding partner who strengthens outcomes for clients and stakeholders.”

Broader Implications for Malaysia’s Infrastructure and Digital Economy

Advancecon’s involvement in the Negeri Sembilan data centre project comes at a moment for Malaysia’s infrastructure sector. The government’s push to position the country as a regional data centre hub—through initiatives like the Malaysia Digital Economy Corporation (MDEC) and tax incentives for data centre operators—has accelerated investment, but it has also highlighted the need for complementary infrastructure development.

Earthworks and civil engineering firms like Advancecon are increasingly becoming indispensable in this ecosystem, as data centre operators prioritize projects with pre-built infrastructure to mitigate risks and ensure operational efficiency. The RM121.7 million contract is a testament to this shift, demonstrating how traditional infrastructure providers are evolving into strategic partners for Malaysia’s digital transformation.

For Advancecon, the project also underscores the company’s ability to secure contracts that offer both immediate financial benefits and long-term strategic alignment. With its order book standing at RM939 million in the first half of fiscal 2026—a period in which profit attributable to owners rose by 34.5%—the company is well-positioned to capitalize on Malaysia’s infrastructure growth, particularly in sectors where data centres, industrial parks, and utilities intersect.

Looking Ahead: A Pipeline of Opportunity

Advancecon’s recent contract wins—including the RM47.6 million Johor Corp project announced earlier this year—further illustrate its expanding footprint in Malaysia’s southern industrial corridor, a region increasingly targeted for high-value infrastructure development. The company’s selective approach to project acquisition, focusing on quality contracts with long-term relevance, aligns with its broader strategy to strengthen its position in Malaysia’s evolving infrastructure landscape.

As data centre investments continue to flow into Malaysia, supported by government policies and private sector interest, the demand for enabling infrastructure will only grow. Advancecon’s ability to deliver on complex, large-scale projects like the Negeri Sembilan water supply scheme positions it as a key player in this development, ensuring that Malaysia’s digital economy is built on a foundation as as the data centres it supports.

With the RM121.7 million contract now underway, Advancecon’s next steps will focus on mobilizing resources and executing the project within the 30-month timeline, while continuing to pursue opportunities that reinforce its role in Malaysia’s infrastructure-driven growth. The company’s leadership has made clear that such contracts are not just financial milestones, but proof of its ability to contribute meaningfully to the nation’s economic and digital future.

Related: Phum Boon Eng