This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

YTL Power International Bhd (KL:YTLPOWR) has returned as a winner of The Edge Billion Ringgit Club Awards, buoyed by resilient earnings and prospects for its data centre (DC) expansion plans.

The international multi-utility operator once again clinched the award for Highest returns to shareholders over three years in the utilities sector, retaining the trophy for the third straight year.

Its strong showing reflects the meteoric rise in its share price, which surged more than threefold — from 81 sen on March 31, 2023, to RM3 on March 31, 2026 — translating into a three-year compound annual growth rate (CAGR) of 54.5% in shareholder returns.

The bulk of the share price gains came in 2024, as the group logged back-to-back record annual earnings in the financial years ended June 30, 2023 (FY2023), and June 30, 2024 (FY2024).

Net profit stood at RM1.48 billion in FY2022, rising to RM2.03 billion in FY2023, and then again to RM3.41 billion in FY2024, before easing to RM2.55 billion in FY2025. Overall, the earnings growth translated into a three-year risk-weighted CAGR of 19.9%.

YTL Power’s key businesses include YTL PowerSeraya, the second-largest power generation company in Singapore by installed capacity, and Wessex Water, a water and sewage business in the UK. The group also has interests in power assets in Jordan and Indonesia, as well as a telecommunications business via its 60%-owned YTL Communications Sdn Bhd, which offers 5G services under the Yes brand.

Although earnings continued to moderate in FY2026 to RM1.69 billion amid compressed margins in its core power generation segment, the group’s prospects remain rosy in the eyes of analysts, particularly with regard to its DC plans in Johor and preparations to add further power generation capacity.

Fourteen of the 15 analysts covering the stock had a “buy” recommendation, with a median target price of RM6.52.

Following a steady share price decline from October 2025 to mid-March 2026, the stock has staged a reversal beyond the BRC evaluation period, touching a new record high of RM5.90 on Aug 26 this year.

It is worth noting that the management of YTL Power — 52.46%-owned by YTL Corp Bhd (KL:YTL) — is considering listing its DC business next year to raise funds and unlock value. RHB Research has estimated that the DC business could be valued at RM28 billion, or RM3.06 a share.

YTL Power has announced plans to increase the capacity of the YTL Green Data Center Park in Kulai to 1,200MW, of which 298MW has already been contracted. The group also plans to further expand its DC business with a new DC campus within Sedenak Tech Park West.

Its 600MW solar farm in Kulai is on track for commissioning in the second half of 2026, while PowerSeraya’s new 600MW hydrogen-ready combined-cycle gas turbine (CCGT) plant is expected to come online in end-2027.

Meanwhile, the group has secured reservations for four additional Siemens gas turbines, bringing its total reserved tally to seven turbines, which are essential to its ambitions to meet rising power demand from DCs.

RHB Research, among the most bullish of the research houses, expects earnings from YTL Power’s DC operations to pick up as it ramps up capacity. Another 200MW of DC capacity is expected to be completed at the YTL Green DC Park by June next year, with the group aiming to secure tenants soon.

The acquisition of a 145-acre plot in the Sedenak Tech Park could enable YTL Power to ramp up DC capacity by 400MW per year in view of robust demand, the research house said in an Aug 21 note citing management.

“Notably, the Sedenak land also includes immediate access to water and electricity supply, which should allow YTL Power to accelerate the construction of DC facilities for prospective tenants,” it said.

TA Securities said the new reserved turbines give YTL Power a competitive advantage in bidding for or proposing new gas-fired power plant projects to meet the current strong demand for DCs.

“The 5.25GW potential CCGT capacity [of the seven turbines] is sizeable relative to the group’s current licensed generation capacity of 3.1GW (under PowerSeraya in the Singapore merchant electricity market) and, should it be successfully commissioned, could translate into meaningful earnings upside for the group,” it said in a note dated Sept 17.

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