PETALING JAYA: YTL Power International Bhd plans to spend RM15bil over several phases to develop its 500MW YTL Green Data Centre Park in Kulai, Johor.
For the first phase, YTL Power will invest RM1.5bil to develop The Sea Data Centre which is targeted for completion in the first quarter of 2024.
According to TA Research, this three-storey data centre will be a green facility and feature 24 data hall suites, office space, storage, and parking facilities.
“Singapore’s Sea Ltd will be the anchor tenant for Phase 1. In addition, the group will partner with Chinese data centre developer, GDS Holdings Ltd, to anchor and jointly develop the initial phases,” it said.
TA Research noted the group’s Wessex Water’s revenues and Regulatory Asset Base (RAB) are indexed to UK’s consumer prices index, including owner occupiers’ housing costs inflation index.
“This is expected to cushion the impact of high inflation on Wessex’s costs and index-linked debt.
“On the back of this, for 2023, Wessex’s projected revenue is forecast to rise by a circa RM257.1mil and RAB value by around RM1.39bil ,” it said.
“By the end of the price review period on Mar 31, 2025, Wessex will have delivered RM6.7bil of capital investment. As a result, the RAB value will increase to in excess of RM21.1bil,” TA Research added.
TA Research maintained its “buy” call and raised its target price on YTL Power to 84 sen from 82 sen before based on a sum-of-parts valuation.
Meanwhile, RHB Research said YTL Power’s power division is expected to deliver solid earnings ahead due to strong wholesale prices in the forecast financial year 2023 as well as the full-year contribution from the Tuaspring power plant.
“Power Seraya was appointed as the electricity importer for a two-year trial to import 100MW of electricity from Malaysia,” RHB Research said.