YTL Power and Sembcorp Industries among power firms likely to benefit from South-east Asia data centre boom
But in Malaysia, an analyst warns that higher demand may not translate to materially higher earnings under the country’s current regulatory framework
THE heating up of data centre growth in South-east Asia has been drawing investor interest. Now, analysts are turning the spotlight on one of the key beneficiaries of the booming industry: power companies.
The investment thesis is simple: power-hungry data centres will drive demand for electricity. And this demand will continue to grow as more data centres – each requiring more juice to power artificial intelligence (AI) processes – sprout up.
For example, in Malaysia, which is set to emerge as the largest data centre hub in South-east Asia, the energy capacity is expected to more than treble.
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