MN Holdings Sees Data Centre Growth Driving Malaysia’s Power Infrastructure Demand

Malaysia’s expanding data centre sector is expected to continue driving investment in substations, grid connections and power infrastructure, supporting stronger demand for engineering companies such as MN Holdings.

Infrastructure utilities construction and engineering company MN Holdings Bhd reported a sharp increase in earnings for the fourth quarter ended June 30, 2026, supported by stronger activity in its substation engineering business.

The company said continued data centre development is expected to remain a major catalyst for Malaysia’s power infrastructure market as new facilities require additional electricity capacity and grid connections.

Substation Engineering Drives Growth

MN Holdings’ net profit for the fourth quarter rose 98.8% year on year to RM23.98 million, compared with RM12.06 million in the same period a year earlier.

Quarterly revenue increased 17.9% to RM211.47 million, with the substation engineering segment recording a 24% increase in contribution due to higher project activity and work progress.

The company’s results also benefited from a RM2.02 million reversal of impairment losses on financial and contract assets.

For the full financial year, MN Holdings recorded a new high in net profit of RM92.14 million, while revenue increased 60.8% to RM869.19 million.

Data Centres Increase Power Infrastructure Requirements

Malaysia has been attracting significant investment in data centres, particularly as demand for cloud computing and artificial intelligence infrastructure expands across Southeast Asia.

These facilities require large and reliable electricity supplies, creating additional demand for transmission systems, substations and grid connections.

MN Holdings said expected growth in electricity consumption should support capital expenditure across transmission reinforcement, substation expansion, grid interconnection and related power engineering projects.

The company has already built a significant exposure to this market. Around 70% of its approximately RM1.6 billion outstanding order book has been linked to data centre-related projects, according to previous reporting by The Edge.

Order Book Reaches RM1.64 Billion

MN Holdings ended the financial year with an outstanding order book of RM1.64 billion, providing visibility for future engineering work.

The company plans to continue pursuing projects across power infrastructure, renewable energy, data centres and water infrastructure while maintaining a focus on project execution and cost management.

Earlier in 2026, MN Holdings also secured a RM216 million contract to construct a substation for a data centre in southern Peninsular Malaysia.

The project covers design, construction, installation, testing and commissioning of the consumer substation, together with high-voltage cable connections and related equipment.

Grid Expansion Follows Digital Infrastructure Growth

The expansion of Malaysia’s data centre industry is creating infrastructure requirements beyond the computing facilities themselves.

New data centres require substations, transmission capacity, electrical distribution equipment and supporting utility infrastructure to maintain reliable operations.

As more facilities are developed, power utilities and engineering contractors are expected to expand the supporting grid infrastructure needed to connect these sites.

For MN Holdings, this has translated into stronger substation engineering activity and a growing pipeline of projects linked to Malaysia’s digital infrastructure build-out.

The company remains cautiously optimistic about its outlook as investment continues across data centres, power networks, renewable energy and other critical infrastructure sectors.