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SKS Technologies awarded $100m electrical infrastructure contract for Melbourne data centre

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By Imelda Cotton - 
SKS Technologies ASX infrastructure contract Melbourne data centre
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SKS Technologies (ASX: SKS) has won a $100 million electrical infrastructure contract for an undisclosed data centre client of construction company Erilyan Group.

Located in Melbourne’s western suburbs, the ‘Building C’ project will be the third facility for the international hyperscale data centre operator.

Erilyan previously engaged SKS on electrical infrastructure fit-out contracts totalling a combined $55m for Buildings A and B at the same data centre.

Scope of work

The Building C scope of work includes the installation of high-voltage and low-voltage cabling and installation and testing of client-supplied equipment, transformers, generators and main switchboards.

SKS is also responsible for the design, supply and installation of all cable support systems, general switchboards, lighting, power and structured cabling.

The parties will execute a formal contract in the coming weeks and anticipate completing the project by September 2026.

Repeat business

SKS chief executive officer Matthew Jinks said the new contract reflected the company’s “unerring focus on excellence”.

“The frequency of repeat business has always been a feature of our operational performance and is founded on a proactive approach to communicating with our customers and an execution framework designed to deliver complex projects to their optimal level,” he said.

Funding for the Building C project will come from existing working capital and bank financing facilities.

The company’s current work on hand totals $220m and its pipeline of open tender opportunities sits at $492m.

Data centre growth

Recent forecasts for the development of data centre infrastructure in Australia show the industry will grow at a compound annual rate of 3.2% to reach a value of $7.7 billion by 2029.

The estimate accounts for the rapidly accelerating needs of large organisations for secure repositories to store sensitive and valuable information as they navigate a more technical and data-driven operating landscape.

Mr Jinks said SKS had generated a reputation as the preferred supplier of electrical and communications solutions to the major companies developing data centre infrastructure in Australia.