Syntec construction prioritises data centre projects

Public traded contractor Syntec Construction formed a dedicated team to manage the growing demand for data centre construction projects, particularly from industry heavyweights. This initiative is part of Syntec’s business strategy for this year, which prioritises bids for data centre construction owing to their heightened demand across the industry, according to Chief Executive, Somchai Sirilertpanich.

The company has expanded its skill set by onboarding new staff with nearly two decades of experience in key areas such as systems and methodologies specific to data centre construction. He mentioned our team is ready to engage in more bidding opportunities this year.

Notably, Syntec recently bid for a data centre project, a joint venture involving Gulf Energy Development, Singapore Telecommunications, and Advanced Info Service, planned for Samut Prakan. This announcement coincides with Microsoft’s recent declaration of its intent to build its maiden data centre in Thailand, a project estimated to be valued at around US$1 billion.

In a previous feat, Syntec successfully completed the construction of the Osprey Data Center in Navanakorn Industrial Estate, Pathum Thani, owned by Hong Kong investor OneAsia Data Center (Thailand). The project, encompassing two four-storey buildings and spanning approximately 20,000 square metres, was valued at 455 million baht.

By the first quarter of this year, Syntec had bid for 15 projects, with a total contract value of around 10 billion baht. The majority of these projects were condominiums, accounting for eight projects worth 6.12 billion baht, followed by five hospital sector projects valued at 2.43 billion baht, and the remaining two were hotel projects with a total value of 1.4 billion, said Somchai.

“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,”

He added that competition has eased, with many contractors who had reduced prices during the pandemic exiting the market as their liquidity dwindled, and project owners growing more discerning in their choices of contractors.

Syntec posted consolidated revenue of 7.5 billion baht last year, with 7.1 billion originating from the construction business and 400 million baht from hotel, retail, and other businesses. This marks a rise from 4.8 billion baht and 300 million baht, respectively, in 2022.

The company’s cash flow stood at 3 billion baht at the end of last year, and its consolidated debt-to-equity ratio rose to 0.52 times from 0.32 in 2022. As per Somchai, Syntec’s total backlog was approximately 13 billion baht, reported Bangkok Post.