The AI boom has catapulted Malaysia’s NationGate to the top of the Fortune Southeast Asia 500 list as the fastest-growing company. The electronics manufacturing services provider saw its revenue skyrocket by over 720% last year, reaching 5.27 billion Malaysian ringgit ($1.6 billion). This dramatic growth earned NationGate the 243rd spot on the prestigious list.
NationGate’s success is closely tied to the surge in AI-related investments in Southeast Asia, particularly in data centers. The region has attracted significant attention from tech giants like Google, Oracle, and Microsoft, with Malaysia emerging as a key beneficiary. The company’s data computing segment was the primary driver of its revenue growth, accounting for 88% of its business this year, up from 17% in 2023.
As Nvidia’s only original equipment manufacturing partner in Southeast Asia, NationGate has a unique advantage in assembling AI products. The company integrates Nvidia’s highly sought-after graphics processing units (GPUs) into AI servers, positioning itself for continued growth in the rapidly expanding data center market. NationGate sees “immense potential” in AI and expects to tap into “double digit” annual growth in data center investments both regionally and globally.
However, the AI boom also brings risks. Malaysia and Singapore have faced scrutiny over allegations that they might be used as channels for controlled U.S. chips to reach China. While NationGate has distanced itself from these investigations and clarified it was not involved, the controversy has spooked investors. The company’s shares have dropped by about 40% this year.
Despite these challenges, NationGate’s strong performance in the AI sector positions it well for future growth. The company’s diverse client base, which includes the automotive and telecommunications sectors, adds to its stability. With more than half of its revenue coming from Malaysia and another third from Singapore – the two countries considered Southeast Asia’s data center hubs – NationGate is well-placed to capitalize on the region’s growing demand for AI infrastructure.
