NRW Holdings’ wholly owned subsidiary Fredon has secured a significant contract award for the Stack Data Centre MEL03, marking another major win in Australia’s growing hyperscale data centre sector. The first stage of the Design and Construct Mechanical scope is valued at approximately $115 million, with works focusing on off-site fabrication of mechanical systems for the sprawling data centre campus.
The contract scope covers mechanical systems serving 432MW of the larger 864MW data centre campus development. Works commenced in September 2026 with completion targeted for March 2028, providing Fredon with an 18-month delivery window for fabrication and assembly. This award represents the initial stage of a considerably larger engagement, as Fredon has been appointed as Preferred Contractor for approximately $300 million in total mechanical works across the broader Stack Data Centre project, with final completion scheduled for 2028. The tiered contract structure suggests additional award tranches may follow as Fredon successfully delivers this initial stage.
Melbourne’s emergence as a major hyperscale data centre hub has created substantial opportunities for specialist engineering contractors serving the sector. Fredon’s previous success delivering similar works for Stack Data Centres in Melbourne demonstrates client confidence and competitive advantage in executing complex mechanical systems delivery. The award reflects both Fredon’s technical capabilities and the broader investor thesis around Australia’s data centre market, where cloud infrastructure demand is accelerating across the Asia-Pacific region. Data centre investment cycles typically span multiple years, creating sustained engagement opportunities for contractors with proven track records and technical depth.
For NRW Holdings, the contract strengthens its EMIT division, which includes Fredon alongside other electrical, mechanical, infrastructure and technology service providers. The multi-year timeline and staged delivery provide substantial earnings visibility through mid-2028, supporting investor confidence in forward results. The engagement reinforces group diversification across cyclical and structural infrastructure services, with the $115 million initial award representing a meaningful contribution to forward revenue and demonstrating Fredon’s market positioning in a high-growth sector.
Investors should monitor progression against the March 2028 completion milestone and any further announcements regarding additional stages of the $300 million Preferred Contractor package. Execution risk on large mechanical engineering projects centres on cost management, labour availability, supply chain reliability and scheduling across the delivery window. The availability of skilled mechanical technicians and fabrication capacity will prove critical to profitability outcomes. This ASX announcement has been classified as price sensitive material disclosure by the Australian Securities Exchange.
View the full ASX announcement (PDF)
About NRW Holdings Limited (ASX: NWH)
NRW Holdings Limited provides diversified contract services to the resources and infrastructure sectors in Australia. The company operates through three segments: Civil, Mining, and Minerals, Energy and Technologies, offering services including civil infrastructure, mine management, contract mining, and related industrial services. The company is headquartered in Belmont, Western Australia.
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