Kuala lumpur: Opportunities in Malaysia’s construction sector remain abundant, driven by surging demand for data centres (DCs) alongside the rollout of non-DC projects, said RHB Investment Bank Bhd (RHB IB).

According to BERNAMA News Agency, the total value of construction work done rose 13 per cent year-on-year to a record RM43.9 billion in the second quarter of 2025. RHB IB noted that the DC space is expected to remain active, with Tenaga Nasional signing five electricity supply agreements for seven DC projects in the country. These projects have a combined electricity demand of 733 megawatt (MW) year-to-date 2025 as of August 15.

RHB IB highlighted that Johor alone has approximately 1,473 MW of committed information technology DC capacity, while Kuala Lumpur has 960 MW of planned DC capacity. This information is based on reports from DC Byte’s market spotlight and Jones Lang LaSalle Incorporated’s first half 2025 Asia Pacific DC Market Dynamics report. Additionally, the bank estimates that the 157-hectare land in Port Dickson earmarked for DC development, acquired by Pearl Computing Malaysia, could accommodate between 500 MW and 1.0 gigawatt of DC capacity.

RHB IB also emphasized a substantial number of non-DC projects in the pipeline. Awards related to the elevated Automated Rapid Transit (ART) system in Johor, with an estimated cost of RM6-7 billion, are expected to be announced by year-end. Three consortia are believed to have submitted proposals to the government’s public-private partnership unit.

Other key projects include tenders for the Penang Light Rail Transit (LRT) system works, estimated at RM3-4 billion, which are likely to be announced in the second half of 2025. Tenders for Segment 2 of the Penang LRT, connecting Komtar and Penang Sentral and estimated at RM5-6 billion, could be advertised in October.

RHB IB maintained its ‘overweight’ call on the sector.