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NEGERI Sembilan is emerging as a new hotspot for data centre (DC) developments, presenting growth opportunities for local construction companies, according to RHB Research.
The research house maintains an OVERWEIGHT rating on the construction sector, highlighting Gamuda Bhd, Kerjaya Prospek Group Bhd, and Sunway Construction Group Bhd as top picks.
Analysts cite field visits to Nilai Impian, where a DC-related project has made commendable progress, as evidence that the state could be a focus area alongside Cyberjaya and Johor.
“These and other similar observations indicate that Negeri Sembilan could be the next focus area for DC developments,” RHB noted.
Negeri Sembilan will see two DC projects, namely a green DC in Nilai, reportedly handled by Japan-based Kajima, and a AI technology DC in Springhill, Port Dickson, with enabling works underway on a 389-acre site managed by Gamuda.
Kajima was awarded a RM610 million contract in June 2025 for main building works on a DC, potentially corresponding to the Nilai project observed by RHB.
Springhill’s enabling works cost RM1 billion, with a full-scale water treatment plant of 65MLD planned to support the DC and surrounding residential areas.
Assuming the Nilai DC has a capacity of 30MW, it would require about 2.1 million litres of water per day (MLD). Negeri Sembilan’s 1,050MLD supply capacity with a 16.2% reserve margin is sufficient to meet this demand without strain.
The state is also expected to attract RM20 billion from Australia to develop an AI DC in the Negeri Sembilan Semiconductor Valley, with the first phase costing MYR10 billion, according to Chief Minister Datuk Seri Utama Aminuddin Harun (picture).
RHB noted potential challenges for contractors: heightened competition from foreign firms and unexpected slowdowns in DC investment flows.
Despite these risks, Negeri Sembilan’s growing DC ecosystem is expected to drive sustained opportunities for construction companies, particularly those experienced in large-scale industrial projects. — TMR
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