BURSA Malaysia-listed electrical solutions innovator Powerwell Holdings Bhd has unveiled its receipt of purchase orders totalling RM57.61 mil from a renowned multinational technology corporation.
This monumental deal secured by the group’s wholly owned subsidiary Powerwell International Sdn Bhd underscores Powerwell’s pivotal role in the rising data centre sector in Malaysia and Southeast Asia.
The purchase orders dated May 24 encompass the supply, installation and commissioning of low-voltage switchboards and remote power panels for a high-profile data centre project in Selangor.
This initiative is set to significantly contribute to Powerwell’s consolidated earnings and net assets for the financial year ending March 31, 2025 (FY3/2025).
“This agreement which reflects the trust and reliability that major tech players place in Powerwell positions us at the forefront of Asia’s fast-expanding data centre market,” commented Powerwell’s executive director Catherine Wong.
“We are committed to delivering excellence and innovation, thus ensuring the successful execution of this project within the stipulated timeline.”
Malaysia’s data centre market is currently experiencing exponential growth, driven by escalating demands for cloud services and digital transformation across Asia.
The country’s strategic location, robust infrastructure and government support make it an increasingly attractive destination for data centre investments. Recent developments in the region which includes substantial investments by global tech giants have reinforced Malaysia’s potential to transform into a leading data centre hub in Asia.
The country received RM76 bil (US$16 bil) worth of investments from its data centres between 2021 and March 2023 with its data centre market expected to attract investments of US$2.25 bil by 2028.
Some of the recent developments include the announcement by NVIDIA Corporation at the end of last year to collaborate with a local entity to develop a US$4.3 bil artificial intelligence (AI) cloud and supercomputer infrastructure.
Recently, Microsoft has also committed to a US$2.2 bil investment over the next four years, the largest in its 32-year history in Malaysia by focusing on establishing a robust cloud and AI infrastructure to support Malaysia’s digital ecosystem.
“These investments by global tech giants enhance the technological landscape in which Powerwell operates while also creating a ripple effect of opportunities for local suppliers and service providers in the tech sector,” enthused Wong.
“As Malaysia strides towards becoming an advanced digital economy, Powerwell is strategically positioned to contribute significantly to this growth, leveraging cutting-edge technology and comprehensive expertise in electrical solutions for data centres.”
At the close of today’s (May 27) mid-day trading, Powerwell was up 3 sen or 4.95% to 49.5 sen with 30.55 million shares traded, thus valuing the company at RM287 mil. – May 27, 2024
