Key Highlights

  • SKS Technologies Group has been awarded $28 million of early works with Built for the MEL2 hyperscale data centre in Melbourne's northwest, following the company's earlier completion of approximately $120 million of works on the MEL1 facility.
  • The MEL2 site is planned to deliver more than 354MW of capacity via more than $5 billion of investment, with SKS Technologies' early works covering substation, switchgear building fit-out, and high and low voltage in-ground infrastructure.
  • The new contract lifts the company's order book to an FY27 starting position of $312 million, representing a sevenfold increase since June 2023, reflecting a 68% compound annual growth rate.
  • The company's tender pipeline has grown almost 120% since February 2026, from $572.26 million to $1,254.02 million, with data centre tenders now comprising just over $1 billion of that total.

SKS Technologies Group Limited (ASX:SKS) has been awarded $28 million of early works with Built for the MEL2 hyperscale data centre in Melbourne's northwest, extending a relationship that follows the company's earlier completion of approximately $120 million of works on the neighbouring MEL1 facility.

Scope of the MEL2 Early Works Contract

The new site at which the MEL2 facility will be located is planned to deliver more than 354MW of capacity via more than $5 billion of investment. SKS Technologies' early works engagement covers substation works, including the supply and installation of conduits and underground pits for high-voltage utility services feeding into the gas insulated switchgear, along with interconnecting links to the substation; the complete internal fit-out of the gas insulated switchgear and substation buildings, covering lighting, power distribution and cable support systems; and the supply and installation of high-voltage, low-voltage and communications in-ground infrastructure to enable subsequent structural construction activities. Project works are set to commence immediately.

Building on the MEL1 Track Record

SKS Technologies Chief Executive Officer Matthew Jinks said the recently completed MEL1 project, which covered the full suite of critical electrical systems for that facility, represented a significant milestone that has served as a launch pad for securing repeat work with clients and winning increasingly larger contracts for major hyperscale data centre developments. Jinks said the company is now an established provider to the data centre market in Australia, citing forecasts for larger Sydney and Melbourne developments in the pipeline equating to 44 projects totalling 11.4GW and 30 projects totalling 9GW respectively.

Order Book and Tender Pipeline Growth

The early works contract for MEL2 lifts the company's order book to an FY27 starting position of $312 million, a sevenfold increase since June 2023, reflecting a compound annual growth rate of 68% over that period. Separately, the company's pipeline of work currently under tender has grown by almost 120% since February 2026, from $572.26 million to $1,254.02 million, with data centre tenders now comprising just over $1 billion of the total pipeline, compared with $423.56 million in February 2026.

Broader Data Centre Sector Growth

SKS Technologies specialises in the design and installation of electrical technologies and digital infrastructure, with a diversified service offering spanning audio visual, communications and electrical solutions across sectors including data centres, defence, mining, health, retail and commercial buildings. The company notes that forecast data centre capacity growth across Australia is expected to more than double, expanding by 128.6% from 1.4GW in 2025 to 3.2GW by 2030, a trend it frames as supportive of continued demand for its services.

Working With Established Construction Partners

The MEL2 early works contract is being delivered with Built, a construction partner the company has also worked with on the earlier MEL1 project. Repeat engagements with the same head contractor across successive stages of a data centre campus can reflect an established working relationship and a track record of technical delivery, factors that companies such as SKS Technologies often cite as supporting their ability to win larger, more complex packages of work on subsequent stages of the same site.

Share Market Context

SKS Technologies shares were recently trading at $8.41, up 1.64% on the day, according to intraday market data. As a contractor whose growth has been closely tied to the hyperscale data centre construction boom in Australia, the company's share price is likely to remain sensitive to further contract wins, the pace at which its tender pipeline converts into signed work, and broader sentiment toward data centre and digital infrastructure investment.

Conclusion

The MEL2 early works contract extends SKS Technologies' presence in the hyperscale data centre construction market, building directly on its earlier MEL1 track record and lifting its order book to a record starting position for FY27. With a tender pipeline that has grown substantially over the past year and data centre capacity forecast to more than double across Australia by 2030, the company's near-term growth trajectory appears closely linked to broader digital infrastructure investment trends. The conversion of this pipeline into further signed contracts, and the company's ability to execute on an expanding order book, will remain the key considerations for how this growth translates into future results.