• Paragon Globe's wholly owned PGBG Construction has secured a RM45.16 million contract for earthworks and retaining walls at a data centre development in Johor
  • The contractor is targeting completion of the package in the fourth quarter of 2026, while the data centre operator has not been named

The fact

Paragon Globe Bhd said its wholly owned subsidiary PGBG Construction Sdn Bhd has accepted a RM45.16 million letter of award from a data centre operator in Johor. The package covers earthworks and retaining walls for a data centre development.

PGBG Construction is targeting completion of the work in the fourth quarter of 2026. Paragon Globe said the contract is expected to contribute positively to the group’s earnings and net assets over the duration of the work. The data centre operator was not named. The announcement also did not disclose the facility’s planned capacity, total development cost or wider construction timetable beyond PGBG Construction’s package.

The assessment

The award places one early civil-works package under contract. PGBG Construction’s scope is limited to earthworks and retaining walls, so the RM45.16 million award should be read as the value of that package rather than the cost of the entire data centre development.

PGBG Construction is targeting completion in Q4 2026, but Paragon Globe disclosed no timetable for the wider build and did not name the operator. The award therefore provides a clear milestone for this part of the site work without showing when the project will move into later construction or when the data centre itself could open.

For BTW readers, the practical point is that a defined civil-works package is now under contract, while the scale and schedule of the wider project remain unknown. Further construction awards and project disclosures will show whether the development is progressing beyond its initial earthworks package.

What to watch

Watch whether PGBG Construction completes its package in Q4 and whether the data centre operator is identified. Further awards for structural, mechanical or electrical work would show the project moving into later construction stages, while disclosure of capacity, power requirements and an opening date would give a clearer picture of its overall scale.