SKS Technologies secures A$30m contract for hyperscale data centre
SKS Technologies Group Limited (ASX: SKS) has reached a pivotal milestone, confirming its engagement for a major contract exceeding A$30 million. This significant deal involves the supply and installation of electrical systems for a leading international hyperscale data centre operator. The project, starting immediately, is expected to be completed by December 2024, marking a significant step forward for the company.
The responsibility of SKS Technologies extends beyond mere installation; it encompasses the design and commissioning of electrical systems for a critical 28-megawatt data centre facility. Matthew Jinks, Chief Executive Officer of SKS Technologies, highlighted the strategic importance of this venture. Nearly two years ago, the company foresaw the potential in the data centre sector and has since been gearing up its expertise to secure a considerable market share. This contract not only signifies the fruition of their strategic planning but also boosts their work on hand from A$51 million to over A$80 million.
Major Contract Win for SKS Technologies with International Data Centre Operator
Data Centre Sector: A Strategic Move for SKS Technologies
In early 2022, SKS Technologies reinforced its focus on specific market sectors, including data centres, by integrating specialized teams. These teams brought in the necessary experience and relationships to target and secure projects in this rapidly expanding sector. The company’s decision to focus on data centres was based on the ease of applying its existing in-house skills in conjunction with the expertise of the newly recruited specialists. The growth of this sector, driven by increasing reliance on data and the anticipated surge in AI adoption, presents lucrative opportunities for SKS Technologies.
Enhanced Banking Facilities by Commonwealth Bank
In addition to this contract win, SKS Technologies has also strengthened its financial base. The company recently secured an increase in its banking facilities with the Commonwealth Bank. From an initial approval of A$8 million a year ago, the facilities have now been increased to a total of A$12 million. This enhancement, which includes a new A$2 million equipment leasing facility and an increase in the bank guarantee facility from A$3 million to A$5 million, is a testament to the confidence in SKS Technologies’ strategy and its execution capabilities.
CEO Matthew Jinks expressed that this project validates their strategy to enter and excel in the data centre sector. The expanded financing facilities are not only a nod to their success but also essential in supporting their growth and entry into higher-level business operations.