Fredon secures ~$115 million first stage of ~$300 million Stack MEL03 data centre contract
NRW Holdings has announced that its wholly owned subsidiary Fredon has been awarded the first stage of the Design and Construct Mechanical scope for Stack Data Centre MEL03 in Melbourne. The first-stage package is valued at approximately $115 million, covering the off-site fabrication component of the Mechanical works, with commencement scheduled for September 2026 and Stage 1 completion by March 2028.
The works are designed to facilitate the delivery of Mechanical Systems to 432MW of an 864MW hyperscale data centre campus. This Stage 1 award forms part of a broader ~$300 million total package of works, with Fredon named as Preferred Contractor for the full scope, with completion scheduled for 2028.
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What the MEL03 award means for NRW’s order book
The ~$300 million total contract represents a meaningful pipeline addition for NRW’s EMIT division, within which Fredon operates. The MEL03 award also builds on Fredon’s previous project work for Stack Data Centres in Melbourne, with the repeat engagement serving as a signal of client confidence in Fredon’s delivery capability for complex mechanical scopes.
Jules Pemberton, CEO and Managing Director, NRW Holdings
“I am pleased to share the award of another major data centre contract secured by Fredon. Melbourne is fast becoming a major hub for hyperscale data centres within Australia, and this award reinforces Fredon’s exceptional ability to deliver these complex scopes of work to their clients.”
Key contract parameters at a glance:
- Contract type: Design and Construct — Mechanical (off-site fabrication, Stage 1)
- Client: Stack Data Centres
- Site: MEL03, Melbourne
- Stage 1 value: ~$115 million
- Total contracted scope (Preferred Contractor): ~$300 million
- Stage 1 timeline: September 2026 – March 2028
Understanding hyperscale data centres and why they matter to investors
A hyperscale data centre is a large-scale facility purpose-built to support cloud computing, artificial intelligence, and enterprise technology infrastructure at significant power capacity, typically exceeding 100MW. At 864MW, the MEL03 campus sits firmly within this category, placing it among the most substantial data infrastructure builds in Australia.
The mechanical and HVAC scope within these facilities is among the most technically complex and high-value components of any hyperscale build. Cooling systems must manage enormous heat loads generated by server hardware, and the engineering precision required makes these scopes both specialist and margin-supportive relative to general civil works.
For construction contractors with the relevant capability, the structural case for this sector is clear:
- Large, multi-year contract durations provide meaningful revenue visibility
- Repeat-client relationships, as demonstrated here with Stack, signal operational trust
- Mechanical and electrical scopes carry strong margin profiles relative to civil works
- Sector growth is tied to the structural expansion of AI and cloud infrastructure across Australia
NRW’s EMIT division and the Fredon growth story
Fredon operates within NRW’s EMIT division, which provides Electrical, Mechanical (HVAC), Infrastructure, Technology and Maintenance services. The MEL03 award deepens Fredon’s position as a specialist contractor for high-complexity mechanical scopes in technology infrastructure.
NRW as a group operates with a workforce of around 14,000 people, supporting more than 200 projects across Australia, Canada, the United States and New Zealand. This scale underpins Fredon’s capacity to deliver a project of this magnitude and complexity.
NRW Holdings FY26 results showed the Fredon-driven EMIT segment delivering $684.3 million in revenue across its first nine months of operation, exceeding acquisition assumptions, with the segment’s order book reaching $1.4 billion including $150 million in data centre contracts ahead of the MEL03 award.
The table below summarises NRW’s key divisions as described in the company’s announcement:
| Division | Key Entities | Primary Services | Sectors Served | Notable Capability |
|---|---|---|---|---|
| Civil & Mining | NRW Civil & Mining, Golding Contractors, Action Drill & Blast | Bulk earthworks, road and rail construction, concrete installation, contract mining, drill and blast | Resources, infrastructure, government | End-to-end civil construction and contract mining |
| MET | RCR Mining Technologies, DIAB Engineering, OFI Industrial, Primero | Mine to market solutions, specialist maintenance, non-process infrastructure, materials handling, minerals processing | Resources, industrial engineering | Turnkey design, construct and operation of minerals processing and energy projects |
| EMIT | Fredon | Electrical, Mechanical (HVAC), Infrastructure, Technology and Maintenance services | Technology, industrial, infrastructure, maintenance | High-complexity mechanical scopes for hyperscale data centre construction |
| AES Equipment Solutions | AES Equipment Solutions | OEM refurbishment and rebuild services for earthmoving equipment and machinery | Resources, civil construction | Comprehensive OEM capability for heavy equipment |
What comes next for Fredon and NRW
Stage 1 off-site fabrication is scheduled to commence in September 2026, with completion targeted by March 2028. The ~$115 million Stage 1 award forms part of the broader ~$300 million total package, though the remaining scope has not yet been formally awarded, with Fredon holding Preferred Contractor status for the full scope and overall project completion targeted for 2028.
The MEL03 win signals continued momentum in the data centre vertical for NRW’s EMIT division. As Melbourne’s hyperscale pipeline continues to expand, driven by cloud adoption and AI infrastructure demand, Fredon’s established relationship with Stack Data Centres and its demonstrated delivery capability position the division to pursue further opportunities in this growing segment.
NRW’s dual-sector contract wins across gold processing and government transport infrastructure, announced in the same period, illustrate the breadth of the group’s order book additions as it scales toward FY27 revenue guidance of $4.6-$4.8 billion.
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