Shares shifted sharply as YTL Power International jumped +7.1% to MYR 4.40 on August 7, snapping a five-session slide from MYR 4.24 to MYR 4.11. The catalyst: renewed enthusiasm around the company's massive bet on AI-ready data centres and fresh share issuances tied to its employee stock option scheme (ESOS — a program that lets staff buy company stock at a preset discount). With earnings due August 20, the timing matters: investors are positioning ahead of results that will show whether data-centre revenue is finally materialising at scale.
A Billion-Ringgit Data-Centre Business Is Taking Shape Fast
YTL Power is aggressively building out its Green Data Centre Park in Kulai, Johor, targeting roughly 600 megawatts of capacity by end-2027, with 298 MW already contracted — of which 188 MW is operational.
Management expects the data-centre segment alone to generate about RM1.4 billion in annual EBITDA (roughly, cash profits before debt payments) by FY2028/2029. That would represent a transformative new earnings stream for a company that historically earned its keep from power plants and water utilities.
A Possible IPO Could Be Worth RM28 Billion on Paper
RHB Investment Bank reported that management is considering listing the data-centre unit next year, estimating it could be valued at RM28 billion — or RM3.06 per share — with a bull-case target of RM6.63.
RHB raised its overall target price to RM6.00 from RM5.00. At today's MYR 4.40, that implies 36% upside — but only if the spin-off actually happens and capacity fills on schedule.
ESOS Dilution Is Real but Modest
Recent filings show ESOS-related share listings of 113,900 shares alongside ongoing warrant exercises.
The total ESOS pool is capped at under 10% of outstanding shares , and the amounts are small relative to over 8.6 billion shares on issue. The dilution is a rounding error — but it signals insider confidence, since employees only exercise options when they believe the stock will stay above the exercise price.
Malaysia's EPF Is Quietly Accumulating
Malaysia's Employees Provident Fund acquired 662,200 shares as recently as August 4 , continuing a pattern of steady buying. EPF has increased its stake from roughly 12% to above 13% since May 2026. When the nation's largest pension fund keeps buying, it lends institutional credibility — but it also locks up float and can amplify volatility on days like today.