Summary

The recent news highlights a surge in global investments and advancements in data centers, underpinned by a growing demand for AI and cloud computing. Donald Trump’s announcement of a $20 billion foreign investment in U.S. data centers by Hussain Sajwani signals significant international interest in expanding digital infrastructure. Complementing this, Singapore-based Digital Edge secured $1.6 billion to scale its cloud and AI capabilities, indicating robust growth in Asia's digital ecosystem. Meanwhile, Malaysia's Negri Sembilan is set to house a 158-hectare data center campus, reflecting regional ambitions to capitalize on data-driven technologies. Analysts forecast the semiconductor market's reliance on AI-driven data centers to intensify in 2025, aligning with 2024's unprecedented $282 billion global spending on data center hardware and software. Hyperscalers and enterprises alike are investing heavily, driven by generative AI and cloud technologies, underscoring the critical role of data centers in shaping the digital economy.

NEWS 1: Trump announces $20 billion foreign investment to build new U.S. data centers (7-Jan-2025)

President-elect Donald Trump on Tuesday announced a $20 billion foreign investment to build new data centers across the United States.

Emirati billionaire Hussain Sajwani, a Trump associate and founder of the property development company DAMAC Properties, is pledging “at least” that amount, the president-elect said at his Florida home, Mar-a-Lago.

Source:

Trump announces $20 billion foreign investment to build new data centers

NEWS 2: AI data centers to drive semiconductor market in 2025, analysts say (11-Jan-2025)

The global semiconductor market will rely on artificial intelligence in 2025 as data center demand skyrockets, according to analysts surveyed by Nikkei, as EV and smartphone-related demand remains mired in stagnation.

Source:

AI data centers to drive semiconductor market in 2025, analysts say - Nikkei Asia

NEWS 3: Singapore’s Digital Edge raises $1.6b for cloud expansion (6-Jan-2025)

Digital Edge, a Singapore-based data center operator, has raised over US$1.6 billion through equity and debt financing.

The company will use the funds to expand its operations in response to increasing demand for cloud and AI services in Asia.

The financing package consists of US$640 million in equity investments from various investors and US$1 billion in debt financing, as said by the company.

Source:

Singapore's Digital Edge raises $1.6b for cloud expansion

NEWS 4: Negri Sembilan to get 158ha data centre campus (10-Jan-2025)

PETALING JAYA: Work on a new data centre campus in Negri Sembilan takes a concrete step forward with the groundbreaking ceremony at Port Dickson’s Data Centre Infrastructure Hub.

The event was officiated by Negri Sembilan Mentri Besar Datuk Seri Aminuddin Harun, following the announcement by Gamuda Bhd’s wholly-owned subsidiary, Gamuda DC Infrastructure Sdn Bhd, regarding its sale and purchase agreement with West Synergy Sdn Bhd on Dec 30, 2024.

Source:

Negri Sembilan to get 158ha data centre campus | The Star

NEWS 5: Cloud, enterprise spend on data center gear spiked in 2024 (10-Jan-2025)

• Global spending on data center hardware and software hit an all-time high last year, growing 34% year over year to $282 billion, Synergy Research Group said in a Tuesday report.

• Hyperscalers accounted for more than half of all infrastructure investments, but CIOs and their surrogates helped drive the surge. Enterprise spending on data center gear increased 21% after five years of marginal growth, thanks largely to generative AI, according to SRG.

Source: Cloud, enterprise spend on data center gear spiked in 2024 | CIO Dive

List of Malaysia stocks which should benefit from AI/Data Center theme

1. Gamuda Berhad (GAMUDA):

Infrastructure for Data Centers: As a leading construction and engineering company in Malaysia, Gamuda stands to benefit from the rising demand for data center infrastructure. The company’s expertise in large-scale developments positions it to secure contracts for building hyperscale data centers, a critical component of the AI and data center ecosystem.

Sustainable Development Initiatives: Gamuda has a strong focus on sustainability, including green building solutions. This aligns with the push for eco-friendly data center construction, potentially giving it a competitive edge in securing projects from companies focused on sustainability.

Digital Transformation in Operations: Gamuda has been integrating AI and digital technologies into its construction processes, such as using AI for project planning, resource optimization, and predictive maintenance. This enhances efficiency and positions the company as a forward-thinking partner for AI-driven projects.

2. YTL Power International Berhad (YTLPOWR):​

Key Data Center Initiative: YTL Power is leading the AI and data center theme with its YTL Green Data Center Park in Johor. This is the first and largest renewable energy-integrated data center park in Malaysia, catering to hyperscale data center operators.

Renewable Energy Integration: The facility is designed to leverage green energy, meeting the global demand for sustainable data center solutions, a critical enabler for AI workloads.

Strategic Partnerships: YTL Power has secured key tenants, including Sea Limited (a major tech player in Southeast Asia), which further solidifies its role in supporting AI and cloud services.

3. YTL Corporation Berhad (YTL):

Parent Company Exposure: YTL Corporation, as the parent company of YTL Power, benefits directly from its data center initiatives. This extends its exposure to the AI/Data Center sector.

Infrastructure Support: YTL’s diverse portfolio, including cement production, construction, and infrastructure development, positions it as a critical player in supporting data center projects across Southeast Asia.

Digital Economy Alignment: Through its subsidiaries, YTL Corporation is deeply involved in laying the groundwork for AI-powered services, including cloud infrastructure and edge computing.

4. EG Industries Berhad (EG):

Key Data Center Initiative: EG Industries is poised to benefit from Malaysia’s AI and data center growth through its expertise in electronics manufacturing services (EMS). Its capability in producing components for high-tech industries aligns well with the surging demand for data center infrastructure.

Technology Integration: As data centers increasingly adopt advanced technologies to support AI workloads, EG's focus on high-precision manufacturing and IoT-enabled solutions positions it as a key supplier for critical hardware.

Strategic Opportunities: EG Industries’ strong manufacturing network and adaptability to market demands make it a potential partner for data center operators in Malaysia, capturing value in this rapidly growing ecosystem.

5. MN Holdings (MNHLDG):

Specialized Underground Utilities Expertise: MN Holdings specializes in underground utility and substation engineering, which are critical components for data center infrastructure. The company is well-positioned to provide essential services like power distribution networks and underground cabling for hyperscale data centers supporting AI operations.

Expansion into Data Center Projects: With the growing demand for data centers, MN Holdings can leverage its expertise to secure contracts for utility installations and electrical systems, vital for the reliable operation of AI-driven facilities.

Integration of Smart Solutions: MN Holdings can enhance its service offerings by incorporating AI technologies, such as predictive maintenance for underground utilities and real-time monitoring systems, ensuring efficient and uninterrupted services for data centers.

6. Southern Cable Group (SCGBHD):

Supplying Critical Cabling Solutions: As a leading manufacturer of cables and wires, Southern Cable is well-positioned to meet the increasing demand for high-performance cables required for data centers. Its expertise in producing power, fiber optic, and telecommunication cables aligns with the infrastructure needs of AI-driven facilities.

Fiber Optic Infrastructure Expansion: With the rise of hyperscale data centers and AI applications, the demand for fiber optic connectivity is surging. Southern Cable’s capabilities in manufacturing fiber optic cables enable it to support the rapid growth of high-speed data transmission networks.

Scalability for Future Projects: Southern Cable’s strong production capacity and commitment to innovation allow it to scale its operations to meet the needs of the expanding data center ecosystem. This includes developing customized solutions for energy-efficient and sustainable cabling systems.

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