SKS Technologies Group (ASX:SKS) has secured a $22 million data centre contract with major construction company, ErilyanProjects.
The project, situated in Melbourne's western suburbs, follows a $30 million contract awarded by ErilyanProjects to SKS Technologies in November 2023 for works on Building A of an international hyperscale data facility.
The new contract involves the commencement of construction of a second facility, Building B, to be built adjacent to the first one.
The project is expected to be completed by June 2025.
This and other recent contract wins are anticipated to increase SKS Technologies' revenue forecast for FY25 to approximately $260 million.
"The awarding of this second contract with ErilyanProjects underscores the business' quality of execution on the first project and ability to meet complex project requirements," said SKS Technologies' CEO Matthew Jinks.
"It is a sign of trust in our ability to deliver this new project and satisfaction with our delivery on the first project," Jinks added.
The scope of works includes the fit-out of three data halls totalling 12MW within an existing building, with each data hall having a capacity of 4MW.
It also encompasses high and low voltage cabling, installation and testing of client-supplied equipment, transformers, generators, and main switchboards, as well as the design, supply, and installation of all cable support systems, general switchboards, lighting, power, and structured cabling.
"With the recent increase of our CBA bank facilities and the exemplary FY24 financial results, the Board remains comfortable that the current working capital position can continue to support the current growth plans for the business," added Jinks.
The awarding of this contract brings SKS Technologies' work on hand to $188 million, funded through existing working capital and bank financing facilities.