SKS Technologies Group Secures $28M MEL2 Data Centre Early Works Contract
SKS Technologies secures $28 million MEL2 data centre early works contract
SKS Technologies Group (ASX: SKS) has been awarded $28 million of early works with Built for a hyperscale data centre known as MEL2 in Melbourne’s northwest. The award builds on the company’s earlier work at the MEL1 facility, which served as a launch pad for securing repeat client work in the sector.
SKS completed approximately $120 million of works, including the full suite of critical electrical systems, on the MEL1 facility as announced in July 2024. The new MEL2 site is planned to deliver more than 354MW of capacity via more than $5 billion of investment.
The Melbourne hyperscale data centre contract with Hickory was expanded to $210 million in April 2026, with facility capacity scaling from 90MW to 126MW, illustrating how the MEL1 engagement grew well beyond its original scope before MEL2 was awarded.
Project works will commence immediately. For investors, the win reinforces the company’s positioning as an established data centre provider and demonstrates a repeat-client strategy translating into larger contract awards.
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Scope of the MEL2 early works engagement
The early works engagement covers three core components spanning substation infrastructure and in-ground services. The scope preserves the technical detail of critical high-voltage and communications systems that precede structural construction.
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Substation works for the supply and installation of conduits and underground pits for high-voltage (HV) utility services feeding into the gas insulated switchgear (GIS), including interconnecting links to the substation
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Complete internal fit-out of the GIS and substation buildings, incorporating lighting, power distribution, and cable support systems
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Supply and installation of HV, LV and communications in-ground infrastructure, facilitating early works and enabling subsequent structural construction activities
CEO Commentary
“The MEL1 project which we recently completed, represents a significant milestone project for us as the launch pad for securing repeat work with clients and winning increasingly larger contracts for major hyperscale data centre developments,” said Matthew Jinks, Chief Executive Officer of SKS Technologies.
“We are now an established provider to the data centre market in Australia, with forecasts for the larger Sydney and Melbourne developments in the pipeline equating to 44 projects totalling 11.4GW and 30 projects totalling 9GW respectively.”
Order book jumps to $312 million, 7x growth since 2023
The early works related to the MEL2 project will increase the order book to an FY27 starting position of $312 million, representing a growth multiple of 7 times since June 2023. The trajectory reflects a compound growth rate of 68% CAGR across the work-on-hand base.
The table below sets out the work-on-hand trajectory as disclosed in the announcement.
| Jun 22 | Jun 23 | Jun 24 | Jun 25 | Jun 26 |
|---|---|---|---|---|
| $39M | $45M | $96M | $200M | $312M |
The tender pipeline has also expanded sharply. As reported in May 2026, since February this year the pipeline of work currently under tender increased by almost 120%, with data centre tenders now making up the majority of prospective work.
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Total tender pipeline: $1,254.02M, up almost 120% from $572.26M in February 2026
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Data centre tenders: just over $1 billion, compared with $423.56M in February 2026
The rapid, compounding growth in secured and prospective work underpins revenue visibility into FY27, giving investors a clearer view of forward demand.
Why the data centre boom matters for SKS investors
Forecast growth anticipates a substantial build-out of new capacity across Australia. This structural shift positions specialist infrastructure providers as suppliers to a growing market rather than beneficiaries of a one-off event.
According to disclosed forecast data, Australian data centre capacity is anticipated to more than double, expanding by 128.6% from 1.4GW of capacity in 2025 to 3.2GW of capacity in 2030.* Management also pointed to a development pipeline of 44 projects totalling 11.4GW in Sydney and 30 projects totalling 9GW in Melbourne.*
For investors, this suggests a sustained sector tailwind. SKS operates as a picks-and-shovels provider to the build-out, supplying the underlying electrical and communications systems that hyperscale facilities depend on.
*Australian Data Centre Forecast Report, Issue, April 2026.
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What comes next
MEL2 works commence immediately. The ability to secure repeat client work, growing contract sizes, and a data-centre-heavy tender pipeline point to continued order book momentum heading into FY27, though outcomes remain subject to tender conversion.
SKS Technologies specialises in the design and installation of electrical technologies and digital infrastructure, with a diversified service offering covering audio visual, communications and electrical solutions across Australia. The company serves a broad spectrum of sectors, including data centres, defence, mining, health, retail and commercial buildings, providing a diversified base beyond any single end market.
The commercial diversification strategy has also produced results alongside the data centre pipeline, with SKS securing a $22 million contract for a major retailer’s Docklands headquarters in May 2026, a win that lifted the order book to $355 million and reinforced the company’s goal of reducing sector concentration risk.
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