SKS Technologies Secures $100M Data Centre Expansion in Melbourne
SKS Technologies has been awarded a $100 million contract to fit out electrical infrastructure for a new data centre building in Melbourne, marking a significant boost to its project pipeline and work on hand.
- Award of $100 million data centre project with Erilyan Group
- Project is Building C for an international hyperscale data centre operator
- Increases SKS's work on hand to $220 million
- Project completion expected by September 2026
- Strong tender pipeline of $492 million across sectors
SKS Technologies Expands Data Centre Footprint
SKS Technologies Group Limited (ASX: SKS) has announced the award of a substantial $100 million contract to deliver electrical infrastructure fit-out works for a new data centre facility in Melbourne’s western suburbs. This project, known as Building C, is the third facility for an international hyperscale data centre operator and follows the successful completion of Buildings A and B by SKS.
The contract, awarded in partnership with major construction firm Erilyan Group, is a testament to SKS’s growing reputation in the data centre infrastructure sector. The company’s CEO, Matthew Jinks, highlighted the importance of repeat business and operational excellence as key drivers behind this latest win.
Scope and Strategic Significance
The scope of work for Building C includes the installation and testing of high and low voltage cabling, transformers, generators, and main switchboards. Additionally, SKS will handle the design, coordination, and installation of cable support systems, lighting, power, and structured cabling. This comprehensive electrical fit-out is critical to supporting the high energy demands of hyperscale data centres.
With this award, SKS’s total work on hand rises to $220 million, reflecting a robust project pipeline and strong market demand. The company plans to fund the project through existing working capital and bank financing, indicating confidence in its financial position and operational capacity.
Looking Ahead: Pipeline and Market Position
SKS Technologies currently has $492 million worth of projects under open tender across various sectors, underscoring a healthy pipeline that could sustain growth beyond the current contract. The company’s ability to secure repeat contracts with a major hyperscale operator signals trust and reliability in a competitive market.
As data centre demand continues to surge globally, driven by cloud computing and digital transformation, SKS is well positioned to capitalize on this trend. The anticipated completion of Building C by September 2026 will be a key milestone to watch, potentially opening doors for further expansions or new client engagements.
Bottom Line?
SKS’s $100 million contract win cements its role as a key player in data centre infrastructure, with a promising pipeline that could drive sustained growth.
Questions in the middle?
- When will formal contracts for Building C be officially executed?
- How will SKS manage potential risks to the September 2026 completion timeline?
- What are the prospects for converting the $492 million tender pipeline into confirmed projects?
