Nopadej Karnasuta, President of Thailand Region Business and Industrial Solution at B.Grimm Power Public Company Limited (SET: BGRIM), revealed that the company is in the process of discussing energy-transferring deals with customers in the Data Center business. For the first half of 2025, the company is expecting to complete 2-3 deals with data center customers totaling around 100-200 MW.
Meanwhile, investment in the data center business, which BGRIM has studied around 40-100 MW, is expected to reach a conclusion around 1H25 and could require an investment of around THB 5-7 billion.
Simultaneously, the company also planned to expand its data center business in the future, although the company expects energy demand from the data center business to rise around 300-500 MW in the period of the next 3-5 years.
Harald Link, Group President of BGRIM, has said earlier that the company strategy for 2025 includes:
- Expanding the renewable energy sector and its global business to produce 10 GW worth of renewable energy within 2030.
- Partnerships with data center businesses, as BGRIM aims to be the main provider of energy to data centers in Thailand, by partnering with Amata Industrial Estate to provide renewable energy and all-in-one energy solution service to data centers in Amata Industrial Estate Chonburi.
- Efficient and sustainable capital allocation to support sustainable growth
BGRIM planned to invest a total of THB 136 billion in various projects from 2024 to 2030, 85% of which would be in renewable energy.
Analyst from Yuanta Securities said that this is an opportunity to accumulate BGRIM’s shares at the target price of THB 32.00 per share. Preliminary forecasts suggest that profit in 4Q24 should be around THB 400-450 million, growing from the same period the previous year, due to potential 10-15 MW sales growth from connection with new industrial users and not having to hold electricity costs to THB 3.99 per unit like last year.
Prospects for 2025 suggested that the profit could continue growing compared to last year, even if the electricity price went down, the lowering cost of natural gas could compensate for reduced earnings, the company also expected to recognize profit share from the 179 MW wind farm project in South Korea in 2H25.
Furthermore, BGRIM is also negotiating to sell electricity to 4-5 customers in the data center business, totaling around 300-500 MW. The company is also studying the possibility of directly investing in the data center business itself.
