Data centre jobs remain intact despite US export rules — IJM Corp

• Data centre-related contracts account for about 15% of IJM’s RM6 billion outstanding order book

SHAH ALAM (Feb 13): Data centre jobs in Malaysia appear intact despite the US’ attempt to curb exports of advanced chips thanks to strong demand for digital infrastructure, said IJM Corporation Bhd (KL:IJM).

IJM Corp is actively pursuing three data centre jobs in the country, chief executive officer Datuk Lee Chun Fai (pictured) told The Edge at the sidelines of a company event. Some projects have been on pause, though none have been cancelled, he noted.

“I haven’t encountered any case where a project was put on hold and then completely cancelled,” Lee said. “We still see these projects progressing as planned.”

Data centre-related contracts account for about 15% of IJM’s RM6 billion outstanding order book. IJM is currently building two data centres in Gelang Patah, Johor under a RM508 million contract with a joint venture partner.

Malaysia has benefitted from a raft of foreign direct investments into data centres on the back of rising demand for advanced computing and artificial intelligence. To date, close to five gigawatts of data centre capacity have been announced.

The data centre business in Malaysia still has its appeal, Lee said. “If you look at the fundamentals, water and electricity are still affordable, and land is significantly cheaper here as well," he said.

Shares of IJM Corp have declined more than 20% since the start of 2025, as investors moderate their expectations for domestic and global stocks with exposures to data centres and artificial intelligence amid tightening US restrictions on exports of semiconductors.

The launch of a lower-cost chatbot by China’s DeepSeek, meanwhile, have raised questions about the need for pricey cutting-edge chips, hurting valuations of firms in the industry.

In the construction sector, IJM Corp is trading at 15 times its trailing earnings, the lowest among peers. In comparison, Gamuda Bhd (KL:GAMUDA) is trading at a much higher earnings multiple of 28 while Sunway Construction Group Bhd (KL:SUNCON) is valued at nearly 31 times its historical profit.

Broadly, IJM Corp is on track to achieve its RM5 billion contract replenishment target for the financial year ending March 31, 2025 (FY2025), Lee said.

“So far, we have secured about RM2.8 billion in contracts for FY2025, and we are currently in negotiations for two large contracts,” he said. “If these materialise, we will be very close to hitting our target.”

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