SKS Technologies Expands Data Centre Contract to $210M as Order Book Hits $350M
SKS Technologies has secured an additional $80 million in work, expanding its Melbourne hyperscale data centre contract with Hickory to $210 million. The expanded MEL02A facility in Melbourne’s western region will now deliver 126MW of capacity, up from the originally planned 90MW, under a single executed contract scheduled for completion in Q3 2027.
SKS Technologies expands data centre contract to $210 million
SKS Technologies has won $80 million in additional scope on its existing Melbourne data centre project, bringing the total contract value with major construction company Hickory to $210 million. The project involves designing and constructing critical electrical systems and infrastructure for the MEL02A hyperscale data centre facility in Melbourne’s western region.
The facility’s capacity has increased from 90MW to 126MW following the operator’s decision to expand the project scope by an additional 36MW during the planning and design phase. This expansion is now captured under one executed contract, replacing the original $130 million letter of intent announced in November 2025.
The expanded scope includes additional medium and high voltage works for the facility. Project completion remains on track for Q3 2027.
The contract expansion demonstrates SKS’s ability to grow scope within existing client relationships whilst securing larger commitments in a sector experiencing structural demand growth driven by cloud computing and artificial intelligence workloads.
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What are hyperscale data centres?
Hyperscale data centres are massive facilities designed to support cloud computing, AI workloads, and enterprise data storage at scale. These facilities require uninterrupted power to operate 24/7, making critical electrical infrastructure essential to their operation.
For investors, understanding hyperscale infrastructure is important because data centre construction is experiencing strong global demand due to AI adoption and cloud migration. This creates a multi-year tailwind for specialist contractors like SKS Technologies.
The scale and complexity of these projects create meaningful barriers to entry, limiting the competitive field to contractors with proven delivery capability on mission-critical infrastructure. The facilities also require ongoing electrical infrastructure upgrades as technology evolves, creating recurring revenue opportunities for established suppliers.
SKS is positioning itself as a specialist contractor in a sector with structural growth drivers, having now completed projects for most global hyperscale operators in Victoria.
Order book hits $350 million with strong FY27 visibility
SKS Technologies’ work on hand now totals $350 million, with $240 million (68.6%) flowing into FY27. This provides the company with significant earnings visibility extending well into the next financial year.
The order book has grown almost 8 times since June 2023, when work on hand stood at $45 million. This rapid expansion reflects SKS’s successful conversion of pipeline opportunities into awarded contracts and demonstrates growing market confidence in the business’s ability to deliver large-scale, mission-critical projects.
Matthew Jinks, Chief Executive Officer
“The awarding of this contract demonstrates our ability to convert pipeline opportunities into awarded projects as well as indicating a broader market confidence in the business to reliably deliver such mission critical projects at scale. We are now a fixture in the Victorian data centre market having completed projects for most of the global data centre hyperscalers.”
The order book trajectory shown below illustrates the acceleration in contract wins over the past two and three-quarter years:
| Period | Work on Hand ($M) |
|---|---|
| Jun 23 | 45 |
| Dec 23 | 86 |
| Jun 24 | 96 |
| Dec 24 | 174 |
| Jun 25 | 200 |
| Dec 25 | 276 |
| Feb 26 | 325 |
| Mar 26 | 350 |
The consistent quarter-on-quarter growth in work on hand reflects SKS’s expanding market share in the Victorian data centre sector and its ability to secure projects at scale.
FY26 guidance reaffirmed as contract wins accelerate
Management has reaffirmed its FY26 earnings guidance, supported by the increased level of work on hand. The company expects to deliver revenue of $340 million with a 10% pre-tax profit margin, resulting in before-tax profit of $34 million.
The willingness to maintain guidance amid accelerating contract momentum suggests confidence in delivery capability and margin sustainability. With 68.6% of the current order book flowing into FY27, management has clear visibility on near-term revenue and can plan resource allocation with confidence.
The guidance assumes continued execution on major projects including the expanded MEL02A contract, which represents a significant portion of forecast revenue across FY26 and FY27.
NSW expansion gains traction with first data centre win
SKS Technologies has secured its first data centre contract in New South Wales, marking the company’s entry into a new geographic market. The $3 million contract involves electrical infrastructure upgrades within an existing hyperscale data centre facility in Western Sydney for a major operator.
The scope of works includes:
- Installing and commissioning multiple power distribution units
- Installing extensive cable support systems
- Delivering all associated cable pathways and main feeds
Whilst modest in size compared to the Victorian project, the NSW contract represents a strategic milestone. Chief Executive Officer Matthew Jinks stated the company intends to “build momentum over time in the NSW data centre market, underpinned by our NSW acquisition.”
The contract also highlights an important aspect of SKS’s business model: upgrade work within existing facilities. As hyperscale operators expand capacity or refresh technology infrastructure, they require specialist electrical contractors to deliver upgrades without disrupting operations. This creates recurring revenue opportunities beyond new-build construction.
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Investment outlook
SKS Technologies has demonstrated the ability to win, expand, and deliver large-scale data centre projects in a sector experiencing structural demand growth. The company’s order book has grown almost 8 times since June 2023, reflecting strong industry positioning and successful pipeline conversion.
With $350 million in work on hand and 68.6% flowing into FY27, the business has significant earnings visibility. Management’s reaffirmed FY26 guidance of $340 million revenue and 10% pre-tax margins provides a clear near-term earnings path.
The entry into the NSW market, whilst modest initially, provides optionality for further geographic expansion beyond Victoria. As cloud computing and AI workloads continue to drive demand for hyperscale infrastructure, SKS is positioned to capture share in a market with limited specialist competitors and meaningful barriers to entry.
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