YTL Power International Bhd has secured agreements for four additional SGT-9000HL gas turbine units, bringing its total reserved turbines to seven, in a move that analysts say will bolster the company’s capacity to meet rising electricity demand driven by rapid data centre development. The deals were finalized recently in collaboration with Ganda Power and Siemens Energy.
Industry research firm CGS International (CGSI) projects that the seven turbines have the potential to support combined-cycle gas turbine (CCGT) power plants with a total capacity of approximately 5.25 gigawatts (GW). The firm estimates that a 1.4 GW CCGT plant could generate annual profits after tax ranging from RM200 million to RM250 million, assuming internal rates of return between 8% and 9%. Based on this, the full deployment of the turbines could yield earnings of RM750 million to RM850 million and add around RM8 billion to YTL Power’s valuation.
Construction of the gas plants is expected to take about four years, with commissioning anticipated by the latter half of 2030 or early 2031, according to CGSI. The research house highlighted the strategic importance of turbine availability in securing new CCGT contracts amid global supply constraints, extended lead times, and the urgent need to bring additional generation capacity online.
Analysts from CGSI noted that these additional turbines enhance YTL Power’s readiness and competitiveness in pursuing new power-generation projects, particularly as demand from data centres and industrial users accelerates. Despite recent share price fluctuations, CGSI maintained an “add” rating on YTL Power stock with a target price of RM6.50 per share, noting that this valuation does not yet incorporate the benefits from the newly reserved turbines, suggesting further upside potential.
Meanwhile, Hong Leong Investment Bank (HLIB) Research also expressed optimism about the turbine acquisitions, suggesting the government would view the expanded capacity favorably amid concerns over Malaysia’s power-generation deficit caused by the ongoing data centre expansion. HLIB indicated that the first three turbines, capable of generating 2,250 megawatts (MW), are expected to be delivered before 2030, with the remaining four units, totaling 3,000 MW, to follow thereafter.
HLIB further pointed out that YTL Power could leverage the enhanced turbine capacity to support long-term growth in artificial intelligence and data centre segments, targeting a combined capacity of 2.4 GW. The investment bank reaffirmed its “buy” rating on YTL Power shares and maintained a target price of RM7.58. It also cited contributions from YTL Data Center Holdings, Wessex Water, and Ranhill as ongoing drivers of earnings growth, aided by factors such as data centre expansion, tariff increases, and new water concession projects.
The expanded gas turbine portfolio positions YTL Power to strengthen its footprint in Malaysia’s evolving power infrastructure sector while addressing the country’s growing energy needs linked to technological and industrial development.