Bursa Malaysia data-centre stocks and AI proxies rebound as Trump signals gradual tariff rollout
Investors in Bursa Malaysia’s data centre and AI-related equities staged a broad rebound on Tuesday, buoyed by expectations that the new U.S. administration under Donald Trump would pursue a more gradual approach to tariff increases. Traders returned to these sectors as talk of a tempered tariff path eased some of the near-term trade tensions and the risk of abrupt inflation spikes. Analysts suggested that Trump’s policy tilt could be softer on China, a development that would reduce near-term headwinds for global tech supply chains and potentially support a steadier environment for data-centre builders and AI infrastructure plays. While market participants embraced the optimism, they also noted lingering uncertainty around policy specifics and the sustainability of the rally. In Kuala Lumpur, major data centre-linked contractors and AI proxies registered notable gains, reflecting a mixed but cautiously constructive outlook for Malaysia’s technology and construction ecosystems in 2025. Against this backdrop, investors scrutinised valuations and execution risk as the sector navigates a transition period influenced by U.S. policy signals and evolving global demand for data-centric infrastructure.
Market Context and Tariff Expectations
The week’s trading activity highlighted how macro policy expectations can translate quickly into sector rotations, particularly for data centre and AI-focused plays that stand to benefit from a more stable or less inflationary tariff framework. Market sentiment around tariffs has historically been a key driver of risk appetite in tech-adjacent markets, as rising trade barriers can complicate the costs and timelines for building globally integrated data centres and AI hardware supply chains. In this environment, traders evaluated the likelihood that the Trump administration would pursue a gradual increase in tariffs over time, rather than imposing sweeping measures that could shock inflation and disrupt supplier networks. The prevailing view among equity strategists was that a calibrated tariff strategy would provide negotiators with leverage while giving businesses more time to adjust, plan capex cycles, and reassess vendor and location strategies. This nuanced expectation helped fuel interest in companies with direct exposure to data centre development and AI computing hardware, which often require substantial upfront investment but can benefit from sustained demand if tariff policies remain predictable.
Within Malaysia’s market narrative, the prospect of moderated tariff escalation carried several implications. First, the potential for a more predictable external environment could ease cost pressures on large capital projects tied to data centre construction and expansion. It could also temper price volatility for imported components used in data centre builds, including high-performance chips and related infrastructure gear. Second, softer policy signals toward China could influence trade dynamics and technology partnerships, potentially stabilising the supply chains that underpin Malaysia’s data centre ecosystem and its AI-sector stakeholders. Third, there was an appreciation for how a gradual tariff approach might align with Malaysia’s own development agenda, including efforts to attract foreign direct investment in technology parks and data-centre campuses that rely on stable regulatory conditions. As a result, investors shifted towards stocks that stand to benefit from ongoing data centre expansions, cloud infrastructure adoption, and the deployment of AI platforms, while remaining mindful of the risk of a re-pricing if policy details diverge from expectations or if global demand cools.
Analyst commentary in recent days emphasised that valuation discipline remains essential amid policy ambiguity. While many construction and tech infrastructure stocks appeared reasonably priced given sector upcycles, equity researchers cautioned that the lack of clarity around new chip regulatory regimes could introduce volatility. In particular, the risk of a renewed pullback if earnings multiples compress due to policy shifts or a slower-than-anticipated capex cycle remained a meaningful consideration for investors seeking to balance upside with downside protection. Overall, the tariff narrative contributed to a backdrop in which market participants pursued selective exposure to order-book-rich players and those with a strategic footprint in data centre ecosystems, even as broader market breadth stayed uneven.
Data Centre and AI Proxy Stocks on Bursa Malaysia
The trading day showcased a broad-based movement within Bursa Malaysia’s data centre and AI proxy universe, with several stocks delivering notable intraday strength and closing gains. Among the standout names was Sunway Construction Group Bhd, a contractor with a substantial footprint in data centre contracts. The stock surged as much as 36 sen or 10.3% to a high of RM3.86 intraday, illustrating the market’s appetite for companies with robust data centre exposure. By the close, Sunway Construction had risen 19 sen, equal to 5.43%, closing at RM3.69 and reaching a market capitalisation of RM4.51 billion. The performance underscored investors’ confidence in the sector’s near-term visibility, given the scale of data centre projects in Sunway’s order book and the broader data infrastructure cycle.
Other construction players with data centre-related wins also posted gains, highlighting the sector’s positive sentiment on capex-driven growth. Gamuda Bhd rose modestly by 0.92% to RM4.38, reflecting a balanced stance as investors weighed valuation against potential project flow and margins in a competitive environment. IJM Corp Bhd climbed 5.32% to RM2.77 at the close, continuing a trend of selective strength within construction peers that are well-positioned to capitalize on data centre-related work and related civil engineering needs. These movements were consistent with a view that the construction segment could see continued up-cycle dynamics, supported by active bidding and favourable project mix in data centre campus development, campus electrification, and logistics hubs.
Beyond construction, valuations and sentiment also fed through AI infrastructure proxies and data centre operators. YTL Power International Bhd, a diversified utility with a growing footprint in data centre infrastructure and Nvidia Corp’s latest chips deployment, advanced 3.08% to RM4.02, reflecting investors’ anticipation of integrated data centre ecosystems and energy management synergies. Telekom Malaysia Bhd (TM) and TIME dotCom Bhd (TIMECOM), both players with established data centre operations or data-centre-adjacent connectivity services, extended gains of 2.32% and 3% respectively, underscoring ongoing enthusiasm for the sector’s connectivity backbone and cloud-related services. Sime Darby Property, which is actively developing a data centre for lease, rose 6.04% to RM1.58, a sign of investor confidence in the real estate component of Malaysia’s data centre ecosystem. Mah Sing Group Bhd, which has a joint venture with Bridge Data Centre to advance data centre facilities, climbed 7.97% to RM1.49, reinforcing the market’s focus on strategic partnerships that expand data centre capacity.
Smaller players engaged in AI-server hardware or related AI infrastructure segments also recorded gains. NationGate Holdings Bhd and SNS Network Technology Bhd, both involved in AI-server businesses, saw their shares climb 5.94% to RM2.32 and 8.49% to 57.5 sen respectively. The broad-based strength across data centre and AI proxies suggested that investors were pricing in continued expansion of data centre capacity and AI workloads, supported by expectations of stabilising external policy conditions and sustained demand for AI-enabled computing infrastructure.
In terms of valuation context, market data indicated that Sunway Construction traded at a trailing price-earnings ratio (PER) of about 27 times, while Gamuda traded at roughly 26.8 times and IJM at approximately 16.3 times. These multiples were in line with, or slightly higher than, sector peers, reflecting a combination of strong order books, project visibility, and the ongoing data centre upcycle. Analysts noted that while these valuations could be justified by robust project pipelines and long-term growth prospects, the lack of clear clarity around new policy rules for chips and related technology could introduce risk to the upside. The takeaway for investors was to prefer stock-specific selection rated by project execution risk, order-book depth, and potential for margin expansion rather than broad-based exposure to the entire data centre and AI proxy segment.
Key Movers and Stock-by-Stock Analysis
Sunway Construction Group Bhd stood out as the top contributor to the sector’s positive momentum, primarily driven by its dominant role in data centre-related contracts within its order book. The company’s intraday movement to RM3.86 indicated strong appetite for developers linked to critical data infrastructure projects, and its closing price of RM3.69 reflected solid investor sentiment about its long-term leverage to the data centre cycle. The magnitude of its intraday move underscored the market’s recognition of Sunway Construction’s leadership position in the Malaysian data centre space and the potential for continued revenue growth as data centre capacity expands regionally. With a substantial portfolio of projects across data centre campuses, cooling systems, electrical works, and related civil engineering, Sunway Construction embodies a key corner of Malaysia’s data centre construction ecosystem. The market’s evaluation of the stock’s risk-reward balance highlighted the importance of maintaining a robust bid pipeline and managing cost controls to sustain profitability through the cycle.
Gamuda Bhd and IJM Corp Bhd also posted gains, albeit to varying degrees, as investors digested the implications of a data centre-led growth environment for construction contractors. Gamuda’s modest rise to RM4.38 suggested that while the stock benefited from the broader momentum, investors remained mindful of valuation and execution risk, particularly in a sector with intense competition for large data centre projects and infrastructure development. IJM’s 5.32% move to RM2.77 signified improved sentiment around its project mix and potential upside from ongoing or upcoming data centre-related orders. Both companies are positioned to benefit from Malaysia’s data centre expansion cycle, and as such they remain central to discussions about how the sector translates into earnings growth, cash flow generation, and balance-sheet strength during the market’s upcycle.
On the AI and data infrastructure front, YTL Power International stood out for its strategic alignment with Nvidia-driven data centre advancements. The stock rose 3.08% to RM4.02, reflecting investors’ expectations for synergies between energy infrastructure and high-performance computing deployments. Telekom Malaysia and TIME dotCom, with their respective data centre and connectivity operations, also posted gains of 2.32% and 3%, indicating continued investor interest in the connectivity backbone that underpins data centre activity and AI workloads. Sime Darby Property’s 6.04% ascent highlighted the appeal of real estate assets tied to data centre space, including datacentre parks and leased facilities. Mah Sing Group’s 7.97% rise, driven by its joint venture with Bridge Data Centre, emphasized how partnerships in data centre ecosystems can translate into immediate share-price momentum. NationGate and SNS, both AI-server and AI-infrastructure players, demonstrated how niche segments within the broader AI stack can deliver outsized gains when investors anticipate higher utilization of AI hardware and server performance.
The stock-specific narrative also included commentary from market participants about valuations and the risk-reward balance. Analysts from reputable firms emphasised that while the sector’s fundamental drivers — data centre expansion, AI workloads, and quality capex — remain intact, investors should remain selective due to the potential for multiple expansion or contraction driven by policy shifts, supply chain dynamics, and competitive intensity. In practical terms, this means favouring companies with credible project pipelines, proven execution capability, and transparent margin management, as opposed to chasing names with speculative outlooks or stretched valuations. The market’s emphasis on data centre feasibility, power and cooling efficiency, and the ability to monetize data centre ecosystems will continue to shape stock performance in the months ahead, particularly if policy signals confirm a smoother tariff trajectory and less aggressive protective measures.
Valuation, Analyst Notes, and Investment Implications
Valuation comparisons across the sector provided a useful lens for assessing relative upside potential and risk. AskEdge data, a market data source commonly consulted by investors, indicated that Sunway Construction traded at a trailing PER of around 27 times, signaling expectations for continued earnings growth driven by data centre-related projects and structural improvements in contract execution. Gamuda, at roughly 26.8 times trailing PER, reflected a similar horizon for near-term revenue visibility from large-scale civil and infrastructure projects intertwined with data centre development. By contrast, IJM’s lower trailing PER of about 16.3 times suggested a more modest growth assumption relative to its peers, possibly reflecting a different project mix or margin profile. These valuation benchmarks underscored the nuanced risk-reward landscape within Malaysia’s data centre and AI proxy space: while some leaders command premium multiples on strong project visibility and market position, others offer more attractive relative valuations given the balance of risk and upside.
Analysts highlighted several key risk factors that could influence future performance. A potential risk highlighted in market notes was the possibility of a continued sell-off if macro conditions deteriorate or if the policy environment around chips, tariffs, and technology restrictions remains uncertain. The risk of multiple reversion exists if the sector’s forward growth is not as robust as anticipated or if project delays compress earnings visibility. Conversely, upsidese disability could materialise if data centre capex accelerates, if AI adoption expands more rapidly than expected, or if policy clarity creates a more conducive investment climate. In this context, investors were advised to conduct thorough due diligence on the execution track record of contractors, the quality of order books, and the dependency on a small number of large contracts. Stock picking was emphasized as essential to navigate a landscape that remains sensitive to policy signals, competitive pressure, and the pace of capex in data centre ecosystems.
From a strategic perspective, the market outlook suggested that the Malaysian data centre and AI proxy segment would continue to benefit from ongoing investment in data infrastructures, including the construction of campus-scale data centres, hyperscale facilities, and the broader network of data connectivity that underpins cloud services and AI workloads. Companies with integrated capabilities spanning construction, data centre management, and AI-hosted services could stand to gain more than peers, provided they maintain disciplined project execution, cost control, and a favorable mix of high-margin contracts. The synergy between construction prowess and technology-driven demand signals was a notable theme, as businesses that can secure high-quality orders and deliver on time can translate project wins into sustainable earnings growth and shareholder value. Investors would do well to monitor orders in the data centre segment, capacity expansions at AI hardware facilities, and any shifts in regulatory policy that could impact supplier costs and project viability.
Risks, Opportunities, and Forward Outlook
Looking ahead, several risks and opportunities could shape the trajectory of Bursa Malaysia’s data centre and AI proxy equities. On the upside, the continued growth of data centre capacity, cloud migration, and AI deployment across enterprises could sustain demand for construction and IT infrastructure services. The integration of Nvidia-powered chips into data centre ecosystems and the expansion of data centre campuses could catalyse longer-term revenue streams for both builders and technology providers, supporting earnings growth and potentially higher multiples for stock with strong project pipelines. The ability to execute on large-scale data centre bids and to maintain margins through disciplined cost management will be critical in sustaining investor confidence. Additionally, collaborations and joint ventures, like Mah Sing’s partnership with Bridge Data Centre, highlight a trend toward strategic alliances that unlock data centre opportunities through shared resources and risk-sharing arrangements. This trend could be a meaningful driver of near-term stock performance for players involved in data centre development and occupancy.
On the downside, policy ambiguity around tariff regimes and chip-related regulations could reintroduce volatility into valuations, especially if investors reassess the sector’s sensitivity to trade policy and supply chain constraints. A sudden policy shift or a disappointing set of policy details could trigger a reassessment of the data centre credit cycle and hit the momentum across contractor stocks. There is also the ever-present risk of a reversion to mean valuations if data centre growth fails to meet expectations, or if a broader market pullback leads to risk-off sentiment across the tech-adjacent space. Currency fluctuations, supply chain disruptions, and project delays could further complicate the earnings outlook for construction and data centre players. Despite these risks, a more stable tariff environment, combined with a favourable capex cycle in data centre and AI infrastructure, could create a constructive setup for the sector, allowing high-quality companies to translate order-book strength into sustained profit growth.
Investors should watch several forward-looking indicators. The pace of new data centre projects and the visibility of upcoming tenders will be critical to sustaining momentum in both construction and AI proxy equities. The level of capex from data centre operators, cloud providers, and enterprise users will help gauge the durability of the rally and whether multiples can expand further or remain anchored by earnings growth. Monitoring the evolution of tariff policy timing and content will be essential, as policy developments could either reinforce confidence or introduce volatility. In addition, the health of the broader macro environment, inflation trends, and currency stability will influence the degree to which Malaysia’s data centre ecosystem can attract international investment and maintain competitive cost structures. Taken together, these factors will shape the sector’s path in the near term and contribute to a more nuanced, data-driven investment narrative for participants who seek exposure to Malaysia’s data centre infrastructure and AI-driven growth story.
Conclusion
The rebound in Bursa Malaysia’s data centre and AI proxy stocks on Tuesday reflected a confluence of policy expectations, sector fundamentals, and company-specific dynamics. Investors responded to the prospect of a more gradual tariff approach by the Trump administration and to the belief that softer U.S. policy signals could bolster data centre demand and AI infrastructure development. Sunway Construction led gains on the back of its data centre-focused orders, while other construction peers like Gamuda and IJM also posted gains, signaling a sector-wide interest in infrastructure tied to data centre expansion. In the AI proxy space, firms involved in data centre deployment and AI hardware, including YTL Power, TM, TIME dotCom, Sime Darby Property, Mah Sing, NationGate, and SNS, saw positive moves driven by expectations of sustained capex in data centre ecosystems and AI workloads. Valuation dynamics showed elevated multiples for market leaders, underscoring the premium investors are willing to pay for strong project pipelines and strategic data centre exposure, yet analysts warned that policy and execution risks require careful stock selection.
As markets move forward, the key takeaway is that Malaysia’s data centre and AI infrastructure equities could continue to outperform if tariff policy remains measured and if demand for data centre capacity and AI-enabled services strengthens. The sector’s trajectory will depend on the quality of project execution, the stability of supply chains, and the ability of companies to translate data centre investments into consistent earnings growth. Investors should remain vigilant for policy shifts, keep a close watch on new orders, and favour stocks with robust order books and clear paths to cash-flow expansion. The ongoing data centre cycle promises potential upside, but only for those with disciplined execution, transparent margin management, and the capacity to navigate a policy environment that remains in flux.
