Kuala Lumpur, 22 June 2026 – HE Group Berhad has secured a subcontract worth approximately RM102 million for a data centre project in Johor, strengthening the electrical engineering service provider’s exposure to Malaysia’s fast-growing digital infrastructure sector.
The contract was accepted through HE Group’s wholly-owned subsidiary, Hexatech Engineering Sdn Bhd. It was awarded by a Malaysia-incorporated engineering, procurement and construction management company with experience across construction, civil engineering and offshore oil and gas projects.
Unlock the Full Article
This article is exclusive to The Ledger Asia Subsribers / PAID members.
Already have an account? Log in here
Under the subcontract, Hexatech Engineering will undertake the supply, installation, testing and commissioning of main electrical works for the data centre. The project is targeted for completion by 19 September 2027 and is expected to contribute positively to HE Group’s earnings over the course of the contract period.
The latest win lifts HE Group’s order book to approximately RM275 million as at 22 June 2026, giving the company improved earnings visibility and a stronger project pipeline. For a specialist electrical engineering player, the expansion of its order book reflects growing demand for mission-critical infrastructure as Malaysia attracts more investment into cloud computing, artificial intelligence and large-scale data centre capacity.
Managing Director Haw Chee Seng said the contract adds to HE Group’s growing footprint in the data centre segment, which has become an increasingly important contributor to the company’s order book. He said the group will continue directing business development efforts towards data centres, semiconductors and other high-growth industries where demand for electrical infrastructure remains active.
Malaysia’s data centre sector has been expanding rapidly, particularly in Johor, where proximity to Singapore, land availability, improving power infrastructure and strong regional connectivity have made the state a preferred location for digital infrastructure investment. The growth of AI workloads, enterprise cloud adoption and hyperscale demand has created significant opportunities for engineering, power, cooling and electrical systems providers.
For HE Group, the RM102 million subcontract is strategically meaningful because data centres require reliable and technically demanding electrical systems. These facilities depend on uninterrupted power, efficient distribution, redundancy, safety systems and rigorous testing standards. Companies with proven execution capability in this area may be well positioned to capture repeat opportunities as Malaysia’s digital infrastructure pipeline grows.
The contract also places HE Group within a broader industrial trend. As Malaysia strengthens its position in semiconductors, advanced manufacturing and data centres, demand for specialised engineering services is expected to rise. Electrical infrastructure providers are increasingly becoming part of the critical supply chain supporting the country’s digital and industrial transformation.
The Ledger Asia Insights
For investors, HE Group’s latest contract reinforces the investment theme surrounding Malaysia’s data centre boom. While much of the market attention has focused on landowners, utilities, hyperscale operators and technology companies, supporting contractors and engineering specialists could also benefit from the sector’s expansion.
The RM275 million order book provides HE Group with better earnings visibility, which is important for assessing near-term revenue momentum. However, investors should also monitor execution risks, project margins, working capital requirements and the company’s ability to convert new tender opportunities into profitable contracts.
Johor’s emergence as a major data centre hub could continue to create opportunities for companies involved in electrical systems, mechanical works, power infrastructure, substations and maintenance services. As AI-driven workloads increase, the technical requirements of these facilities are likely to become more demanding, favouring contractors with strong delivery capability.
HE Group’s new contract shows how Malaysia’s digital infrastructure growth is spreading beyond headline investment announcements into the contractor and engineering ecosystem. As more data centre projects move from planning to construction, companies positioned along the enabling infrastructure value chain could see stronger demand, provided they maintain execution discipline and cost control.
