Kuala lumpur: Jati Tinggi Group Bhd (JTGB) has secured an RM86 million contract to design and construct a 275-kilovolt (kV) overhead transmission line and related power infrastructure for a data centre in Kapar, Selangor. The project will be handled by its wholly owned subsidiary, Jati Tinggi Holding Sdn Bhd, following the acceptance of a letter of award (LOA) from a Malaysian company specializing in computer consultancy, data processing, hosting infrastructure, and related services.

According to BERNAMA News Agency, the contract's total value, inclusive of sales and service tax, is RM86 million. The scope of work encompasses civil and structural tasks, conductor installation, geographic information system (GIS) interface works, landing station equipment, remote-end equipment supply, system integration, and testing. It also includes the final handover for the commercial operation of the data centre at Klang Valley Technology Park.

JTGB has stated that the contract period extends from the date of possession of the project site until September 30, 2026. The company anticipates that the contract will positively impact the group's earnings, earnings per share, and net assets per share throughout its duration. However, the LOA will not affect the share capital and the shareholdings of the substantial shareholders.

JTGB mentioned it is not aware of any significant risk factors from the LOA, other than the usual operational risks associated with such contracts. Additionally, the company confirmed that none of its directors, major shareholders, or related persons have any direct or indirect interest in the LOA.