Investors Target Power Production to Profit from AI

June 3, 2024

Artificial intelligence is gaining traction in Southeast Asia as equity investors seek alternative investment opportunities. The region’s lower energy and land costs make it an attractive location for data centers, with power producers being a favored choice. Firms in IT services, telecommunications, and semiconductors are also well-positioned to benefit from the infrastructure spending. Utility companies and grid suppliers are particularly interesting investments, according to Kenneth Tang of Nikko Asset Management. The growth of AI is expected to continue over the next few years as tech giants invest billions in infrastructure.