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AI/Data Center Weekly: Key Developments Driving the Industry Forward (Week 3, 2025) - #YTL, #YTLPOWER, #EGIndustries

KingKKK
Publish date: Sat, 18 Jan 2025, 07:42 AM

Summary:

The global AI and data center industry continues to expand with significant developments. J.P. Morgan forecasts data center investments to boost U.S. GDP by 10-20 basis points in 2025-26, fueled by AI's growth. KKR and Gulf Data Hub announced a $5 billion partnership to scale one of the Middle East’s largest data center platforms. In Europe, Italian startup iGenius is building a $102 million Nvidia-powered data center in Italy, creating over 1,000 jobs. STACK Infrastructure is entering Malaysia with a 220MW campus in Johor Bahru, reinforcing Malaysia's prominence in the Southeast Asian data center market. Additionally, Mitrajaya Holdings secured a RM376 million contract for a data center project in Kuala Lumpur. Key Malaysian stocks like YTL Power, YTL Corporation, and EG Industries stand to benefit from this growing trend, driven by hyperscale infrastructure demand, renewable energy integration, and advanced manufacturing capabilities.


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NEWS 1: J.P.Morgan forecasts spending on data centers could boost US GDP by 20 basis points in 2025-26 (17-Jan-2025)

(Reuters) - J.P.Morgan estimated spending on data centers could contribute between 10-20 basis points to U.S. economic growth in 2025-2026 as technology companies race to benefit from the artificial intelligence boom.

Investments in data centers, which help provide computing power for AI, have surged since OpenAI launched ChatGPT in 2022, as companies across sectors increasingly shift their operations to the cloud and integrate AI into their offerings.

Source:

J.P.Morgan forecasts spending on data centers could boost US GDP by 20 basis points in 2025-26


NEWS 2: KKR and Gulf Data Hub Form Strategic Partnership to Scale One of the Middle East’s Largest Independent Data Center Platforms (17-Jan-2025)

  • Strategic partnership between a leading global investment firm and a leading UAE business with a regional footprint

  • KKR and GDH are committing to support over $5 billion of total investment to build-out data center capacity, supporting the significant rise in hyperscale demand, AI and digital-focused national priorities across the Gulf countries

  • First data center investment for KKR in the Middle East, adding to KKR’s unique global portfolio of four hyperscale platforms comprising several GW of deployed assets across 100+ facilities

Source:

KKR and Gulf Data Hub Form Strategic Partnership


NEWS 3: Italian AI startup invests $102m in data center with Nvidia (17-Jan-2025)

Italian AI startup iGenius is on track to complete a data center project in southern Italy, using Nvidia, by summer 2025.

With an investment exceeding €100 million (around US$102 million), it is expected to create over 1,000 jobs.

This new data center will focus on cloud services tailored for both businesses and individual users.

Source:

Italian AI startup invests $102m in data center with Nvidia


NEWS 4: STACK Infrastructure Enters Malaysian Data Center Market with 220MW Johor Bahru Campus (15-Jan-2025)

STACK Infrastructure has announced its entry into the Malaysian data center market with the development of a new 220MW campus in Johor Bahru. This move solidifies Malaysia’s position as a key player in the rapidly expanding Southeast Asian data center landscape.

The Johor Bahru campus, strategically located near the Singapore border, will comprise two facilities offering a combined 1 million square feet of space to support the growing demand for hyperscale infrastructure in the region. The campus will be powered by Tenaga Nasional Berhad’s 275kV infrastructure, ensuring reliable and scalable energy supply.

This announcement further underscores the significant growth of the Malaysian data center market, particularly in Johor. Factors such as government incentives, strategic connectivity, and competitive operating costs have attracted major players to the region.

Source:

STACK Infrastructure Enters Malaysian Data Center Market with 220MW Johor Bahru Campus


NEWS 5: Mitrajaya clinches RM376 mil contract for data centre construction in KL (17-Jan-2025)

KUALA LUMPUR (Jan 17): Mitrajaya Holdings Bhd (KL:MITRA) said it has secured a RM375.5 million contract for the construction of a data centre in Kuala Lumpur. The construction group said the contract was awarded by NextDC Sdn Bhd, the Malaysian unit of Australia's data centre operator NextDC Ltd. The contract, awarded to its wholly owned subsidiary Pembinaan Mitrajaya Sdn Bhd, is expected to contribute positively to the group's earnings and net assets for the financial years ending Dec 31, 2025 and 2026, said Mitrajaya in a filing with Bursa Malaysia on Friday.

Source:

Mitrajaya clinches RM376 mil contract for data centre construction in KL


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


1. 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.


2. 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.


3. 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.


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AI/Data Center Weekly: Key Developments Driving the Industry Forward (Week 3, 2025) - #YTL, #YTLPOWER, #EGIndustries

https://klse.i3investor.com/web/blog/detail/bestStocks/2025-01-18-story-h497931890-AI_Data_Center_Weekly_Key_Developments_Driving_the_Industry_Forward_Week

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