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  • Writer's pictureRealFacts Editorial Team

Powering Asia’s AI Revolution: Investments and Opportunities

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Analysts from Morgan Stanley predict that “With $50 billion in committed AI/DC [data center] investments, we see upside to power gencos and grid operators in the region.” The increasing demand for AI infrastructure, including data centers, power generation companies, and grid operators, is set to reshape Asia’s economic landscape. According to Morgan Stanley’s recent analysis, there is expected to be a significant rise in power demand, driven primarily by the expansion of data center operations, with an anticipated increase of one gigawatt in the near future. This surge is supported by substantial investments earmarked for AI and data center expansions, providing strong growth opportunities for power generation companies and grid operators across Asia. These investments highlight the crucial role these sectors play in supporting the growing AI infrastructure.

Morgan Stanley identifies key beneficiaries in this evolving scenario, such as Tenaga Nasional, Malaysia’s leading grid operator. The company stands to benefit from Google’s planned $2 billion investment in a new data center and cloud hub, which is expected to increase local power demand by approximately 350 megawatts. This development enhances Tenaga Nasional’s attractiveness to investors, evident in its inclusion in various ETFs and analyst expectations of a potential 6% stock upside.

In Singapore, companies like Keppel and Singapore Telecommunications are poised to capitalize on the country’s constrained power market by developing new data centers totaling at least 500 megawatts. Both companies, listed on the Singapore Exchange with Keppel also trading as an ADR in the U.S., are prominently featured in ETF portfolios. Analysts foresee substantial upside potential, estimating 26% for Keppel and 22% for Singapore Telecommunications, underscoring their pivotal roles in advancing technology and driving economic growth in the AI and data center sectors. These developments highlight the strategic importance of these companies as drivers of innovation and economic expansion in the region.


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