Malaysian Power Giant YTL Explores Entry into South African Data Center Market November 28, 2025 The strategic expansion of global digital infrastructure is increasingly seeing traditional utility players leverage their core competencies to enter new markets. This trend underscores the growing convergence between energy provision and data center operations, a critical nexus for ensuring reliable and sustainable computing capacity worldwide. Malaysian conglomerate YTL Power International Berhad is reportedly considering a significant expansion into South Africa's burgeoning data center market, according to local media reports. The move would see the company, a major power producer in Southeast Asia, establish data center facilities in the country within the next one to two years, with plans to also operate as an independent power producer (IPP) to supply electricity to the sites. The potential expansion was discussed by YTL's executive director, Yeong Keong Hann, during the recent G20 summit in Johannesburg, where he was part of the Malaysian Prime Minister's delegation. Citing the need for further research, Yeong stated, "Hopefully, in the next year or two, YTL can establish a presence in South Africa." He also noted that the South African government had inquired about YTL's expertise in water management, a service the company provides in the United Kingdom. YTL brings substantial energy sector experience to the table, operating a portfolio of over 3 gigawatts (GW) of gas-fired generation capacity in Singapore through its subsidiary, YTL PowerSeraya. The South African data center market, primarily concentrated in Johannesburg, is served by major operators including Teraco (a Digital Realty company), Africa Data Centres, NTT, Equinix, and MTN. In a notable recent development, Teraco completed a 30-megawatt (MW) expansion at its JB4 campus in August 2025, bringing the site's total critical IT load to 50MW and cementing its status as Africa's largest standalone data center. YTL's exploration signals growing international investor confidence in South Africa's digital infrastructure potential. If realized, the entry of a vertically integrated player with in-house power generation capabilities could intensify competition and bring a unique value proposition focused on energy security and operational efficiency to the local market. Source: datacenterdynamics
Malaysian Power Giant YTL Explores Entry into South African Data Center Market
