KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is predicted to extend its capital expenditure (capex), significantly in its transmission and distribution division, to accommodate know-how firms’ organising information centre services within the Klang Valley and Johor.
In a notice on Friday, Public Funding Financial institution Bhd (PIVB) mentioned Telekom Malaysia Bhd (TM) is seen because the prime beneficiary within the telco house, and the thirst for extra vitality ought to result in an unprecedented surge in TNB’s energy demand.
“We estimate that its partnership with Singtel to determine a greenfield information centre in Iskandar Puteri may doubtlessly lead to an earnings uplift of about 24% past the monetary 12 months 2026 (FY26).
“Therefore, the next tariff can be justifiable to seize enough return on funding,” it mentioned.
PIVB famous that TNB is predicted to roll out about RM90 billion in capex for six years till 2030 to assist vitality transition initiatives and system upgrades.
It additionally mentioned extra infrastructure improvement, corresponding to energy connectivity, web alternate factors, cable touchdown stations, and fibre optic cables, is predicted to be laid to cater to the increasing info know-how (IT) workloads.
“Presently, the overall IT load in Malaysia is estimated at about 900 megawatts (MW) in 2024, however that is anticipated to balloon to about 1,400MW by 2029, translating to a compound annual development price of 8%,” it mentioned.
PIVB raised the goal worth (TP) on TNB to RM16 with an ‘outperform’ name from RM13 beforehand.
The funding financial institution mentioned different beneficiaries from the elevated information centre investments in Malaysia embody building sector gamers corresponding to Gamuda Bhd (TP RM9.20) and IJM Company Bhd (TP RM4.20) for his or her monitor report in securing extra information centre jobs.
“Their next-generation industrial constructing system would assist shorten building interval as pace of deployment is essential to those information centre operators.”
Key dangers to its advice embody competitors from regional information centres, energy and water shortage, an oversupply situation within the home market, and environmental affect as a consequence of overconsumption of pure assets, in addition to warmth and wastewater era, PIVB mentioned. – Bernama