en.Wedoany.com Reported - Malaysian construction specialist Binastra Corporation Berhad has announced a contract to build a data center in Kuala Lumpur, valued at RM491 million (USD 120 million). According to the company's filing on Bursa Malaysia, its wholly-owned subsidiary Binastra Builders Sdn Bhd has accepted a letter of award from Exsim Sri Permai Sdn Bhd.

The project is the Cheras Data Center Phase 2. Binastra will commence work immediately and complete the construction of a seven-story data center building and a substation within 18 months. The scope of work covers the design, construction, and maintenance of foundations, substructure, main building, and infrastructure.

This is Binastra's second data center contract at the same site on Jalan Sri Permaisuri. In February this year, the company secured the Cheras Data Center Phase 1 project in the area, valued at RM503 million (USD 123 million), with an expected completion period of 20 months from commencement. Additionally, according to Binastra's official website, in 2023 the company was awarded a construction and infrastructure project worth RM161.3 million by Exsim Jalil Link Sdn Bhd for a proposed data center.

Following the Cheras Data Center Phase 2 deal, TA Research noted that Binastra is rapidly shifting towards high-quality non-residential projects such as data centers and solar EPCC (engineering, procurement, construction, and commissioning). TA believes this will enhance the company's profitability through faster project turnaround times. In its report, TA stated that this reduces reliance on a single project segment while enabling the group to benefit from structural investment themes, such as Malaysia's expanding data center ecosystem and solar renewable energy promotion. This strategic shift is a key catalyst for the company's financial outlook. Unlike traditional high-rise residential developments, which typically take 30 to 36 months to complete, non-residential projects have shorter construction cycles of 18 to 24 months. Before taking on an increasing number of data center-related projects, Binastra was primarily engaged in high-rise residential construction.