Kasikorn Securities (KS) has a positive outlook on the report of Microsoft establishing its first data center in Thailand, seeing Delta Electronics (Thailand) Public Company Limited (SET: DELTA) to be the most beneficial stock from this investment.
Satya Nadella, CEO of Microsoft, announced the data center investment in Thailand, while there was no indication on the amount of investment capital.
Prior to the said announcement, the company had also announced its investment in the Republic of Indonesia, with an investment capital of $1.7 billion.
The investment was said to include Azure services and AI infrastructure. The capital expenditure for a data center was commonly around $7-14 million per megawatt, with 25-30% of it being a power system.
Kasikorn Securities foresaw the report as a positive sentiment for DELTA, as Microsoft was one of its major clients and suppliers for hardware and infrastructure for data centers.
The firm maintained a ‘Hold’ recommendation with a target price of THB 79.00 per share.
