Powerwell Holdings Bhd, a pioneering provider of electrical solutions listed on Bursa Malaysia, has revealed significant orders amounting to US$12.24 million (RM57.61 million) from a multinational technology corporation. This contract, secured through its wholly-owned subsidiary, Powerwell International Sdn Bhd, highlights Powerwell's crucial involvement in the burgeoning data centre industry in Malaysia.
The purchase orders include the provision, installation, and activation of low-voltage switchboards and remote power panels for a prominent data center project in Selangor. This endeavor is poised to substantially contribute to Powerwell's overall earnings and net assets for the fiscal year ending March 31, 2025 (FY2025).
Catherine Wong, Powerwell’s executive director, said, “This agreement reflects the trust and reliability that major tech players place in Powerwell and positions us at the forefront of Asia's fast-expanding data centre market. We are committed to delivering excellence and innovation, ensuring the successful execution of this project within the stipulated timeline”.
The Malaysian data center market is undergoing rapid expansion. Recent advancements in the area, such as significant investments from global tech giants, highlight Malaysia's potential to emerge as a premier data center hub in Asia. Over the period between 2021 and March 2023, the country saw investments totaling RM76 billion (US$16 billion) in its data centers, with expectations of continued investment influx into the market.
Some recent developments include NVIDIA Corporation's announcement at the end of last year to collaborate with YTL to develop a US$4.3 billion Artificial Intelligence (AI) cloud and supercomputer infrastructure. Recently, Microsoft has also committed to a US$2.2 billion investment over the next four years, the largest in its 32-year history in Malaysia, 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 and also create a ripple effect of opportunities for local suppliers and service providers in the tech sector. 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”, Catherine added.