What are data centers and why are they important for AI?

Data centers are specialized buildings that house computer systems, servers, and networking equipment. For AI applications, these facilities need to be particularly powerful, with advanced cooling systems and massive computing capacity. They form the physical backbone that allows AI systems to process huge amounts of information. Alibaba's new AI-focused data centers in Southeast Asia represent major infrastructure investments that require specialized hardware and services from the companies in this stock group.

Why is Alibaba expanding in Southeast Asia specifically?

Southeast Asia represents one of the fastest-growing digital economies in the world, with a young, tech-savvy population of over 650 million people. By building new data centers in Malaysia and the Philippines, Alibaba is positioning itself to serve this expanding market and offer faster, more localized cloud services to businesses in the region. This strategy helps Alibaba compete with other global cloud providers while supporting the region's digital transformation.

What is a REIT and how does it relate to data centers?

A REIT (Real Estate Investment Trust) is a company that owns, operates, or finances income-producing real estate. Data center REITs specifically own the buildings and facilities that house servers and networking equipment. Companies like Equinix (EQIX) in this stock group are data center REITs that provide the physical infrastructure necessary for cloud providers like Alibaba. They generate income by leasing space, power, and cooling to technology companies, making them a way to invest in digital real estate.

What does "projected profit" mean in the stock data?

Projected profit refers to the estimated future earnings a company is expected to generate, typically based on analyst forecasts. This forward-looking metric helps investors understand a company's potential financial performance. For the companies in this stock group, projected profits may be influenced by increasing demand for their products and services as Alibaba and other tech giants expand their data center presence in Southeast Asia.

15 handpicked stocks

Alibaba's Southeast Asia Data Expansion

This carefully selected group of stocks represents companies that stand to benefit from Alibaba Cloud's major AI data center expansion in Southeast Asia. Professional analysts have identified these businesses as essential providers of the hardware, networking, and infrastructure needed to build and operate these new digital facilities.

Han Tan | Market Analyst

Published on July 3

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Vertiv Holdings Co

VRT

Current price

$265.38

As a key provider of critical power and thermal management solutions, Vertiv's products are essential for building and maintaining energy-intensive AI...

As a key provider of critical power and thermal management solutions, Vertiv's products are essential for building and maintaining energy-intensive AI data centers like those Alibaba is launching.

Super Micro Computer, Inc.

SMCI

Current price

$30.90

Super Micro Computer is a leading manufacturer of high-performance servers optimized for AI, which are fundamental components for equipping the new da...

Super Micro Computer is a leading manufacturer of high-performance servers optimized for AI, which are fundamental components for equipping the new data centers in Malaysia and the Philippines.

Dell Technologies Inc

DELL

Current price

$149.91

Dell is a major provider of servers, storage, and networking systems that form the backbone of large-scale cloud infrastructure, positioning it to ben...

Dell is a major provider of servers, storage, and networking systems that form the backbone of large-scale cloud infrastructure, positioning it to benefit from Alibaba's expansion.

Equinix, Inc.

EQIX

Current price

$971.47

Intel Corporation

INTC

Current price

$45.25

GDS Holdings Ltd

GDS

Current price

$42.82

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Your Basket's Financial Footprint

Market capitalisation breakdown for a 15-stock basket focused on data centre, hardware and related infrastructure companies.

Key Takeaways for Investors:

Large-cap dominance generally implies lower volatility and performance tracking of broader markets, likely offering more stable returns.
Use this basket generally as a core, long-term holding rather than a speculative, short-term allocation.
Expect steady, likely long-term value growth rather than rapid, explosive gains.

Total Market Cap

VRT: $66.83B
SMCI: $32.58B
DELL: $100.15B
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+24.33%

≈

About This Group of Stocks

Our Expert Thinking

Alibaba Cloud's new AI data centers in Malaysia and the Philippines signal a massive digital infrastructure build-out across Southeast Asia. This creates significant opportunities for companies providing the essential hardware, networking equipment, cooling systems, and real estate needed for these facilities to function.

What You Need to Know

These stocks represent various parts of the data center ecosystem, from server manufacturers and networking specialists to power management providers and digital infrastructure developers. They offer direct exposure to the growing capital expenditure being poured into Southeast Asia's expanding digital economy.

Why These Stocks

Each company in this group was specifically selected for its role in supplying critical components or services needed for large-scale data center projects. They're positioned as direct beneficiaries of Alibaba's expansion and similar investments by other tech giants in the region.

Group Performance Snapshot

24.33%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 24.33% over the next year.

12 of 14

Stocks Rated Buy by Analysts

12 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🌏

The Southeast Asia Digital Boom

Southeast Asia's digital economy is growing at hyperspeed, with Alibaba's new data centers signaling just the beginning of massive infrastructure investment. These stocks let you tap into this regional growth story early.

🤖

AI's Hidden Infrastructure Play

While everyone talks about AI software, these companies provide the essential physical foundation that makes AI possible. As AI adoption accelerates, the demand for specialized data centers and hardware will only increase.

🔄

Beyond Just Alibaba

These companies don't just benefit from Alibaba - they're positioned to capture growth from all tech giants expanding in the region. The Southeast Asia digital infrastructure buildout is a multi-year trend supported by multiple big spenders.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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Alibaba's Southeast Asia Data Expansion

Top Picks from This Group

Your Basket's Financial Footprint

12 Month Growth Potential

About This Group of Stocks

Our Expert Thinking

What You Need to Know

Why These Stocks