Jati Tinggi Secures RM72 Million Power Contract for Selangor Data Centre

Jati Tinggi Group Bhd has officially secured a RM72.84 million contract to execute high-voltage power infrastructure works for a major data centre project located at the Banting Technology Park in Selangor.

The company’s wholly owned subsidiary, Jati Tinggi Holding Sdn Bhd, formally accepted the letter of award on September 18. Under the terms of this agreement, Jati Tinggi Holding will serve as the main contractor for the project, overseeing the delivery of critical electrical infrastructure required to power the facility.

According to the original publisher, the scope of work involves the design, supply, installation, testing, and commissioning of high-voltage power systems. These systems are essential for maintaining the operational reliability of the data centre, which relies on consistent, high-capacity electricity to manage server workloads and cooling infrastructure.

While the contract duration and the identity of the data centre operator remain undisclosed, the award signals a significant expansion of Jati Tinggi’s footprint in the energy infrastructure sector. By acting as the main contractor, the firm positions itself at the intersection of Malaysia’s rapidly expanding digital economy and the local power utility sector.

For the Malaysian investor and the broader business community, this project highlights the tangible economic downstream effects of the country's data centre boom. As these facilities multiply across Selangor and Johor, they create a steady pipeline of specialized work for local engineering and infrastructure firms, moving capital away from speculative technology investments and into physical, long-term construction projects.

For the Malaysian worker, this development offers a glimpse into the changing nature of the local job market. As the country maintains a relatively low unemployment rate of 3.0%, demand for specialized technical roles in power engineering is likely to tighten. This project serves as a reminder that the digital transformation of the economy is not just about software; it is a labor-intensive endeavor that requires thousands of skilled technicians to build the physical backbone of the internet.

This contract award arrives as Malaysia continues to post robust economic data, with real GDP growth currently at 6.0% year-on-year. The massive infrastructure investment required for data centres aligns with the government's strategy to position Malaysia as a regional hub for cloud computing and artificial intelligence. These facilities act as massive sponges for power, putting further pressure on national energy planning as the country balances this industrial growth with broader inflationary pressures, which remain modest at 1.9% as of August 2026.

Industry observers will be watching to see if Jati Tinggi can maintain its margins amidst rising operational costs. While the company has secured a significant contract, the volatility of fuel and logistical costs—evidenced by the current price of unsubsidized petrol at RM4.37 and diesel at RM5.27—could influence the profitability of large-scale infrastructure projects that rely heavily on heavy machinery and site transport.

Furthermore, the scale of this project suggests that power grid readiness remains a critical bottleneck for tech expansion in Malaysia. As more players enter the Banting and wider Selangor technology corridors, the ability of contractors like Jati Tinggi to deliver reliable, high-voltage solutions on time will be a key indicator of Malaysia's competitive edge in the global data centre race.

Whether this contract leads to further specialized awards for Jati Tinggi or if the firm will face challenges in sourcing materials and skilled labor for the Banting project remains to be seen. Key details regarding the completion date and specific technical specifications have not been publicly confirmed.