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AI/Data Center Weekly: Key Developments Driving the Industry Forward (Week 4, 2025) - #YTL, #YTLPOWER, #GAMUDA, #TENAGA, #EGIndustries

KingKKK
Publish date: Sat, 25 Jan 2025, 05:10 PM

Summary:

Oracle has announced plans to expand its investment in Abu Dhabi fivefold, driven by increasing demand for AI and cloud services in the UAE, where it currently operates two cloud regions. Meanwhile, Malaysia’s National Water Services Commission (SPAN) has raised concerns about the water-intensive operations of data centers, warning that the country’s rapid data center expansion, which has announced nearly 5GW of capacity, could lead to a long-term water crisis without reforms. On a global scale, Meta Platforms is set to significantly increase its capital spending in 2025, allocating $60-65 billion to boost AI capabilities and build a massive data center, marking a 70% rise from 2024 expenditures and underscoring heightened competition among tech giants.


NEWS 1: Oracle to boost Abu Dhabi investment fivefold on AI, cloud (23-Jan-2025)

Oracle has announced plans to increase its investment in Abu Dhabi due to rising demand for AI and cloud services in the United Arab Emirates (UAE).

Nick Redshaw, Oracle’s senior VP for technology cloud and UAE country leader, said that the investment in the region will grow fivefold.

Oracle currently operates two cloud regions in the UAE (Abu Dhabi and Dubai), and 11 regions across the Middle East and Africa. Globally, it has 171 cloud regions.

Source:

Oracle to boost Abu Dhabi investment fivefold on AI, cloud

NEWS 2: Malaysia’s data centre boom could create water crisis, warns SPAN (22-Jan-2025)

Malaysia’s National Water Services Commission (SPAN) has reportedly warned that the country’s data centre boom could create a water crisis in the longer term unless reforms on data centre water usage are enacted in the next few years.

Malaysia has been positioning itself as a major data centre hub for Southeast Asia, with everyone from established tech giants to newcomers looking to build a data centre in the country. Close to 5GW of data centre capacity has been announced via various projects.

However, data centres typically consume huge amounts of potable water for cooling. According to The Edge Malaysia, SPAN chairman Charles Santiago told a press conference on Tuesday that unchecked usage of potable water for cooling and other operational needs by data centres is unstainable and threatens Malaysia’s long-term water security.

Source:

Malaysia’s data centre boom could create water crisis, warns SPAN

NEWS 3: Meta Spending to Soar on AI, Massive Data Center (24-Jan-2025)

Mark Zuckerberg announced a huge leap in Meta Platforms’s META 1.73%increase; green up pointing triangle capital spending this year to between $60 billion to $65 billion, an increase driven by artificial intelligence and a massive new data center.

The plan to increase the company’s capital expenditures by as much as roughly 70% over 2024 comes days after tech rivals including OpenAI unveiled a $500 billion spending plan backed by President Trump called Stargate.

Source:

Meta Spending to Soar on AI, Massive Data Center


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


1. Tenaga Nasional Berhad (TNB):

Powering Data Centers: As Malaysia’s largest electricity utility provider, TNB is crucial to the operation of energy-intensive data centers. It is directly involved in powering hyperscale data centers and is expanding its focus on renewable energy.

Green Data Center Projects: TNB has launched initiatives like renewable energy parks to attract data center operators, enabling sustainable solutions for the growing AI industry.

AI for Operational Efficiency: TNB is leveraging AI in its operations to enhance grid efficiency, demand forecasting, and energy distribution, aligning with the broader AI ecosystem.


2. 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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