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
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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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