Malaysian Conglomerate YTL Explores Data Center and Power Generation Entry in South Africa
December 24, 2025
Malaysian infrastructure giant YTL Power is reportedly considering a strategic expansion into South Africa's burgeoning digital infrastructure market, aiming to establish both data center operations and power generation assets in the country. This potential move highlights the growing convergence of energy and digital infrastructure sectors, as companies with utility expertise seek to capitalize on the high-power demands of modern computing.
According to a report citing comments from YTL executive director Yeoh Keong Hann, the company is exploring opportunities to enter the South African market within the next one to two years. The remarks were made during the recent G20 summit in Johannesburg, where YTL was part of the Malaysian Prime Minister's delegation. Yeoh indicated that the South African government has also inquired about YTL's expertise in water management, a service the company provides in the United Kingdom.
YTL Power, a subsidiary of the diversified YTL Corporation, operates a significant power generation portfolio exceeding 3 gigawatts (GW) of gas-fired capacity in Singapore through its unit YTL PowerSeraya. The company's potential dual-role strategy in South Africa—acting as both a data center developer and an independent power producer (IPP)—could address critical market needs for reliable energy and digital capacity.
The South African data center market, concentrated in Johannesburg, hosts major operators including Teraco (a Digital Realty company), Africa Data Centres, NTT, and Equinix. The market has seen significant recent growth, exemplified by Teraco's August expansion of its JB4 campus, which added 30 megawatts (MW) to create what it claims is Africa's largest standalone data center with a 50MW critical IT load.
YTL's exploration signals increasing international investor interest in Africa's digital economy. If realized, the entry of a major Asian player with integrated power capabilities could intensify competition, drive further infrastructure investment, and potentially introduce new models for sustainable and reliable data center operations in the region. The company's timeline remains tentative, however, with Yeong Hann stating, "Hopefully, in the next year or two, YTL can establish a presence in South Africa, but these are areas where we will need to double down and conduct further research."
Source: datacenterdynamics
Malaysian Conglomerate YTL Explores Data Center and Power Generation Entry in South Africa
