Layer 2: Power: Energy Segment Repositioned for a Gas-Led Data Centre Buildout The AI buildout is, above all, an energy buildout. Training and inference workloads are expected to add multiple gigawatts of incremental global data center load over the medium term. Malaysia is one of the primary beneficiaries of regional hyperscale investment; Johor’s data center corridor alone has attracted multi-gigawatt capacity commitments from global operators. This capacity expansion is gas-led in the near term, as renewable buildout rates cannot meet the time-to-market requirements of hyperscalers. DNeX’s Energy segment has been reframed from a mature UK upstream story into a Malaysia-weighted portfolio. The Abu Cluster, with first oil approaching following Field Development and Abandonment Plan approval, along with the Beta and Meranti developments, provides production visibility precisely as domestic gas and power demand tightens. OGPC which operates in downstream equipment supply and maintenance activities for the Oil and Gas, Power and Communication sector extend the Group’s participation along the national energy value chain. This is further supported by DNeX’s partnership with POWERCHINA, a massive, state-owned comprehensive construction group headquartered in Beijing, and ranked as the world’s largest power engineering contractor. Layer 3: Sovereign Deployment: IT Segment as the Monetisation Engine Enterprise and public-sector AI adoption across ASEAN is expected to be shaped by increasing sovereignty and regulatory requirements. High-trust sectors, including Government, financial services, healthcare and national security, will require AI workloads to operate on infrastructure with clearly defined jurisdictional control, auditable data residency and secure, compliant supply chains. In Malaysia, only a limited number of players possess both the incumbent platforms and regulatory positioning to address this market, of which DNeX’s IT segment is a key participant. The segment is anchored by mission-critical national platforms, including the NSW, which connects more than 45,000 users and processes over 100 million electronic transactions annually; iGFMAS, renewed in June 2025 with a contract value of RM103.8 million over 60 months; and the Gamuda DNeX Cloud joint venture, supported through collaboration with Google, which provides a scalable foundation for sovereign cloud infrastructure. The NSW contract extension in September 2025 further strengthens multi-year revenue visibility and earnings stability. CROSS-LAYER SYNERGIES The strategic value of the portfolio increases when the three layers are coordinated rather than operated in isolation. Three specific cross-layer plays warrant attention: Compute and Sovereign Cloud: As a player operating in sovereign cloud space, DNeX through its stakeholders can specify domestic silicon content for edge and regulated workloads, creating a pull channel for SilTerra’s specialty process capability and reducing reliance on foreign supply chains for sensitive public-sector deployments. Power and Sovereign Cloud: Integrated energy-plus-digital offerings, combining assured energy availability with guaranteed data residency, enable DNeX Group to provide a differentiated proposition for regulated customers compared to normal hyperscalers operating outside national jurisdictional frameworks. Compute and Power: Computing for sovereign cloud requires relevant hardware to run the intended intelligent applications. As more and more applications are driven by AI agents and are being run simultaneously, 24/7, the need for constant, stable and everincreasing power becomes paramount for users of such compute. This creates a clear strategic case for captive or contracted power solutions, which the Group is structurally positioned to evaluate and potentially deliver through its Energy segment. STRATEGIC REVIEW In FY2025, the segment delivered a turnaround to a PBT of RM58.2 million, demonstrating improved operational discipline and earnings quality, despite lower headline revenue following the Subsea Telco divestment and the completion of the National Digital Department initiative (Pusat Data Sektor Awam). DNeX INTEGRATED REPORT 2025 48 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
RkJQdWJsaXNoZXIy NDgzMzc=