B.Grimm Power Eyes Growth in Smart Utilities and Data Center Businesses

B.Grimm Power Public Company Limited (SET: BGRIM) is poised for expansion into the smart utilities and data center businesses, anticipating significant potential for sustained growth.

During an analyst meeting, the company’s senior director of innovation and sustainability revealed plans to allocate approximately 12 billion baht towards enhancing its infrastructure to better serve end users, placing a strong emphasis on green energy generation.

Furthermore, BGRIM is looking to enhance its transmission capabilities within Smart City projects, such as the initiative spearheaded by AMATA in Chonburi. Concurrently, the negotiations for feeding energy are underway with a major client operating a 100MW data center, with the possibility of scaling up to 500MW in subsequent phases.

BGRIM is well-positioned to benefit from government tenders for clean energy projects under the new Power Development Plan. The company is also exploring investment opportunities in the Middle East, particularly in the United Arab Emirates, Saudi Arabia, and Bahrain, citing their promising growth prospects. Additionally, plans are in place to invest in the data center segment with a capacity ranging from 50-100MW.

LH Securities, in a research report, indicated that BGRIM’s earnings growth is expected to align with the decline in natural gas costs, which are projected to more than offset the decrease in electricity sales prices. The brokerage firm has recommended a “BUY” rating for BGRIM, with a target price set at THB31.00 per share.