An illustration of the YTL Green Data Center Park, a 500MW data centre campus in Johor.
PETALING JAYA: YTL Power International Bhd
’s digital infrastructure business is set to provide meaningful earnings growth in financial year 2027 (FY27) onwards, according to analysts.
The utility and telecommunications group last Friday stated its 20MW artificial intelligence (AI) data centre (DC) facility at the YTL Green Data Centre Park in Kulai, Johor, had been completed and fitted with Nvidia’s NVL72 Grace Blackwell (GB200) graphic processing units.
Part of the facility’s capacity has been contracted by an undisclosed US-based offtaker while the remaining will be utilised by YTL Power for its large-language model and AI solutions.
The 20MW AI facility is part of the larger 500MW Green Data Centre Park YTL Power has proposed, of which 300MW are being built and commissioned on site.
Its management was quoted in the media as saying this capacity will be fully taken up in the next two years.
“YTL Power’s DC business has started to generate revenue, and is earnings before interest, taxes, depreciation and amortisation or Ebitda, though figures are still immaterial at the moment.
“This is mainly contributed by JDC1, with 32MW out of 48MW operational. Management guided that more meaningful numbers will start to trickle in by FY27,” MBSB Research stated in its latest report on the group.
The research house noted YTL Power’s expansion into the DC business began in December 2021 when it acquired a 50% stake in Dodid Pte Ltd, which owns a 12.5MW tier-three DC in Singapore.
Subsequently in April 2022, the group announced the development of the 500MW DC campus, which will be powered by solar energy, including 600MW of backup supply from the national power grid.
The 20MW AI is housed in the JDC2 facility while JDC3 will have 80MW of capacity, half of which is scheduled to go live by September this year and the remaining 40MW in 2026.
JDC4 will have an IT load of 40MW which will be taken up by a US hyperscaler with the capacity to go live in three phases (September 2025, September 2026 and September 2027).
According to MBSB Research, YTL Power’s JDC5 facility will have a 80MW load but is still in the planning stages.
The research house has maintained its “buy” call on YTL Power with an unchanged sum-of-the-parts based target price (TP) of RM4.88 sen a share.
The TP implies a FY26 price earnings (PE) multiple of 22.5 times. The research house added YTL Power at present is trading at 18.4 times FY26 PE, which still provides an attractive entry point.
“We continue to like YTL Power for its strategic expansion into DCs and its plan to make a comeback in the Malaysian utilities scene through battery energy storage systems and the new gas-fired generation capacity.
“It also recently secured a 100MW quota under large-scale solar or LSS Petra 5+ programme,” MBSB Research noted.
