Propel Global Berhad, a Malaysian provider of oil and gas services, announced yesterday in a stock exchange filing that it has entered into a RM70 million (US$16.6 million) contract with a Singapore-based multinational to undertake civil and structural works on a new data center development in Johor Bahru. The contract also provides for further optional works to be done at subsequent phases which could push up the total value of the project to about RM325 million (US$ 77 million). The latter is subject to confirmation by the end of this year.
The initial phase of the project will be undertaken by Propel’s wholly-owned subsidiary, Propel CMT Sdn. Bhd. in joint venture with China State Construction Engineering (M) Sdn. Bhd. It is scheduled for completion in the first half of 2026. The name of the multinational company was not disclosed.
“This project marks a strategic shift towards higher value digital infrastructure, supported by the Group’s established engineering, procurement, construction, and commissioning (EPCC) expertise. Through this award, Propel CMT will gain additional data centre execution capabilities, benefit from technical knowledge transfer and strengthen its skill sets, all of which will accelerate our ambition to become a recognised player in Malaysia’s digital economy supply chain,” said Angeline Lee, Executive Director and Group Chief Executive Officer of Propel Global. Lee added that Propel Global’s entry into the data centre space is fully aligned with the company’s renewable energy ambitions, positioning it at the intersection of two major trends, the digital economy and energy transition, a future that the company is “actively pursuing.”
With this award, Propel Global anticipates a significant increase in its order book over the next three years as it continues to pursue opportunities in both the data center and renewable energy sectors.
In September last year, Propel Global signed a Memorandum of Understanding with CSCEC The Third Construction Engineering Company Ltd. of China Construction Second Engineering Bureau (CSCEC) to jointly explore potential collaborations in the construction of critical infrastructure, including data centres, telecommunication towers, hospitals, water treatment plants, and various other commercial, residential, industrial, and infrastructure projects. CSCEC is a global leader in construction and development with operations in over 100 countries, with expertise in large-scale construction projects.
