SET-listed contractor Syntec Construction has established a new team to handle data centre construction projects as demand rises, particularly from large players.
Chief executive Somchai Sirilertpanich said this year the company plans to focus more on bids for construction of data centres because they are in high demand from various players in the industry.
"We are expanding to include construction projects for data centres after recruiting new staff with almost 20 years of experience in this field, covering systems and techniques," he said.
"Our team is ready to engage in more bidding opportunities this year."
The company bid for a data centre joint venture between Gulf Energy Development, Singapore Telecommunications and Advanced Info Service, which is to be located in Samut Prakan.
Last Wednesday, Microsoft announced plans to develop its first data centre in Thailand. With an estimated investment of US$1 billion, the location will likely be in the Eastern Economic Corridor, according to media reports.
Mr Somchai said Syntec recently completed the construction of Osprey Data Center in Navanakorn Industrial Estate in Khlong Luang, Pathum Thani.
Owned by OneAsia Data Center (Thailand), an investor from Hong Kong, it comprises two four-storey buildings with a total area of around 20,000 square metres. The contract value was 455 million baht.
"We handled 100% of the architectural structure and Tier 3 system jobs," he said.
In the first quarter of 2024, the company bid for 15 projects with a combined contract value of around 10 billion baht.
The majority were condos, comprising eight projects with a combined contract value of 6.12 billion baht.
The hospital sector accounted for five projects with a combined contract value of 2.43 billion baht, while the remaining two projects were hotels with a total value of 1.4 billion.
"This year, despite fewer condo projects and a sluggish economy, the construction business is registering a recovery for mid-sized contractors with strong financial status and lacking debentures," Mr Somchai said.
He said competition has eased as many contractors that reduced prices during the pandemic exited the market when their liquidity evaporated, while project owners were more selective in choosing contractors.
Syntec recorded consolidated revenue of 7.5 billion baht last year, comprising 7.1 billion from construction business and 400 million baht from hotel, retail and other businesses, up from 4.8 billion baht and 300 million baht, respectively, in 2022.
As of the end of 2023, the company reported 3 billion baht in cash flow and a consolidated debt-to-equity ratio of 0.52 times, up from 0.32 in 2022.
Syntec's total backlog amounted to around 13 billion baht, said Mr Somchai.