Southern Cross Electrical Engineering

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This video was created on 16 December 2025 for IG audiences by ausbiz.

ASX code: SXE

Southern Cross Electrical secures $90 million in data centre and rail contracts

Southern Cross Electrical Engineering (SXE) has won contracts worth $90 million for data centre and rail projects in New South Wales. The work includes electrical systems, fire services and switchboard manufacturing for DigiCo infrastructure REIT's Sydney data centre expansion, with completion in the second quarter (Q2) of 2026.

Positioning in growth sectors

SXE is benefiting from strong demand for data centres and electrification. Global investment in data centres is accelerating, driven by artificial intelligence (AI) and cloud computing. In Australia, $2.8 billion was invested last quarter, more than double the previous period. SXE’s Sydney Metro work adds further diversification.

Prior to this announcement, SXE had disclosed $500 million worth of data centre tenders. Analysts now estimate this pipeline could exceed $1 billion, signalling robust demand well into financial year (FY) 2026 and beyond. With electrification and energy efficiency at the forefront of global infrastructure spending, SXE appears poised for sustained growth.

Investment outlook

SXE is positioned for long-term trends – data centre expansion, electrification and energy efficiency. Despite recent gains, analysts expect earnings momentum to continue, making SXE attractive for infrastructure and technology exposure.