News Alert: Co-develop 168MW data centre capacity with YTL Power in Malaysia
- Partner with YTL Power on 168MW data centre capacity development in Malaysia
- The co-development could potentially double GDS’s capacity in Southeast Asia
- Expect GDS to build more data centre sites in Southeast Asia to serve the growing demand in the region
- The news is positive for GDS’s long term development
What’s New
– GDS (9698 HK / GDS US) announced that it has signed a partnership with YTL Power International Berhad (“YTL Power”) to co-develop 168MW data center capacity, across 8 individual data center facilities, at the upcoming YTL Green Data Center Park in Johor, Malaysia, according to HKEx announcement after market close on 27 Apr 2022.
– The first phase of the co-development will enter service in 2024.
– GDS’s presence at the YTL Green Data Center Park will complement its two hyperscale data center projects at Nusajaya Tech Park, Johor and Nongsa Digital Park, Batam, Indonesia which were previously announced.
– YTL Power is an international multi-utility infrastructure group with a strong track record in developing greenfield projects and acquiring operational assets through competitive auctions.
Our View:
– Partnership with YTL Power is positive to GDS’s long-term development, following its announcement of two Southeast Asia (SEA) projects with a total data centre capacity of 72 MW in 2021.
– We believe the co-development demonstrates the GDS’s data centre development and operational capability since YTL Power has the land and power source for the co-developed site.
– New data centre projects will double GDS’s data centre capacity in SEA, assuming a 50% share of the 168MW co-developed data centre capacity.
– We expect GDS to build more data centers in SEA to serve the growing demand in the region.
– We currently rate BUY on the counter; TP of HK$61/US$62.