YTL Power Invests $10.5B in Gas Turbines for AI Data Centers
Malaysian utility YTL Power is spending over $10 billion on new gas plants to meet surging electricity demand from AI infrastructure.
Key points
- YTL Power is spending over $10.5 billion to build 5.2 gigawatts of gas capacity in Southeast Asia.
- Data centers now use 9.3% of Malaysia's electricity, a share expected to hit 31% by 2035.
- YTL sells power to its own AI data centers, creating a hedge against market volatility.
Malaysian billionaire Francis Yeoh’s energy arm, YTL Power International, is committing more than $10.5 billion to build gas-fired power plants across Southeast Asia. The massive expansion is designed to support the region’s rapid growth in artificial intelligence data centers, which are driving electricity demand to record highs.
On September 15, YTL Power and its partner Ganda Power signed agreements with Siemens Energy for four additional SGT-9000HL gas turbines. This order brings their total to seven units, supporting a combined capacity of over 5,250 megawatts. The plants are planned for Malaysia, Indonesia, Thailand, and Vietnam, with analysts expecting them to come online by late 2030 or early 2031.
AI demand strains regional grids
The pressure on the power grid is already visible in Malaysia, where data centers accounted for a record 9.3% of electricity consumption in August. The Energy Commission projects this share could reach 31% of peninsular demand by 2035. In response, Economy Minister Akmal Nasir stated that the country needs an additional 9 gigawatts of gas-fired capacity by 2032 to replace phased-out coal and serve new digital infrastructure.
Global operators are also accelerating their presence in the region. AirTrunk recently committed $3 billion to two new data centers with a combined capacity of 280 megawatts. Yeoh Seok Hong, YTL Power’s managing director, noted that securing turbines early is a decisive advantage because global supply is tight and lead times are long.
Vertical integration creates a hedge
YTL is uniquely positioned because it operates on both sides of the energy and data equation. The group is doubling its own data center capacity to 2.4 gigawatts and runs Nvidia-based computing through its YTL AI Cloud division. It has also developed ILMU, a local large language model, and launched a digital bank. By selling power to its own facilities and competitors, YTL creates a financial hedge that pure-play data center operators do not have.
Analysts see earnings growth potential
Investment banks are largely bullish on the strategy. HLIB Research maintains a buy rating on YTL Power, citing the data center expansion and higher water tariffs in Britain as key drivers. According to reporting by Billionaires.Africa, the move aligns with the Yeoh family’s broader diversification into digital infrastructure, cementing their status as one of Malaysia’s wealthiest families.
