ARB IOT GROUP LIMITED SECURES ORDER WORTH APPROXIMATELY US$45 MILLION FOR AI DATA CENTRE SERVER SOLUTION
Rhea-AI Summary
ARB IOT Group (NASDAQ: ARBB) has secured a significant AI Products Supply Agreement through its subsidiary ARB IOT Group Sdn Bhd with Gajah Kapitalan Sdn Bhd (GKSB). The deal, valued at approximately US$45.0 million, involves supplying 500 units of ARB-222 AI servers to provide high-performance immersible computer servers.
The agreement represents a strategic move into the expanding data center sector, positioning ARB IOT to capitalize on the growing demand for digital assets and AI server solutions. GKSB, focused on technological innovation in Malaysia, aims to empower local businesses through advanced computing systems for enterprises, research institutions, and developers.
The collaboration is expected to deliver cost savings and operational efficiencies to customers while demonstrating the increasing market demand for AI Products.
Positive
- Secured major contract worth US$45 million
- Large-scale order of 500 AI server units
- Strategic expansion into growing data center sector
- Demonstrates strong market demand for AI products
Negative
- None.
Insights
ARB IOT's $45 million AI server supply agreement represents a transformative deal that's nearly 4x the company's current $11.7 million market cap. This massive order for 500 ARB-222 AI servers significantly strengthens ARB's position in the high-growth AI infrastructure market.
The deal's magnitude cannot be overstated - securing an order of this size typically signals strong product differentiation and competitive positioning. For a company of ARB's size, this single contract could dramatically alter its financial trajectory and production capacity requirements.
This agreement with Gajah Kapitalan represents potential validation of ARB's AI server technology in the Malaysian enterprise market. The deployment of 500 high-performance servers suggests GKSB is making a substantial infrastructure investment, positioning ARB as a credible supplier in the AI data center space.
While execution risks remain regarding production, delivery timelines, and margin preservation, this order significantly enhances ARB's revenue visibility. The deal's focus on immersible server technology aligns with growing demands for energy-efficient cooling solutions in high-density AI computing environments - a critical differentiator as data centers struggle with power consumption challenges.
This deal positions ARB IOT in the rapidly expanding market for specialized AI compute infrastructure. The ARB-222 immersible servers indicate the company is targeting the liquid cooling segment - important technology as AI workloads generate exponentially more heat than traditional computing.
The Malaysian market represents an interesting strategic choice, as Southeast Asia is emerging as a significant data center hub due to favorable climate conditions, improving digital infrastructure, and growing regional compute demands. GKSB's focus on serving Malaysian enterprises suggests ARB is targeting domestic compute needs rather than hyperscaler deployments.
The 500-unit order size indicates substantial capacity expansion, likely supporting multiple client deployments or a significant dedicated AI infrastructure buildout. The $90,000 per-server pricing positions these as mid-to-high tier solutions, competitive with similarly configured systems from established players.
ARB's technology success will depend on their thermal management efficiency, power consumption metrics, and compatibility with leading AI accelerators. The company's ability to secure this large deployment suggests their value proposition is resonating in at least one segment of the market. Key metrics to watch will be delivery timeline achievement, additional order flow, and whether this partnership expands regionally beyond Malaysia.
Kuala Lumpur, Malaysia, March 04, 2025 (GLOBE NEWSWIRE) -- ARB IOT Group Limited (“ARB IOT” or the “Company”) (NASDAQ: ARBB) today announced that it has, through its indirect wholly owned subsidiary, ARB IOT Group Sdn Bhd, signed an artificial intelligence (AI) Products Supply Agreement with Gajah Kapitalan Sdn Bhd (“GKSB”), an entity dedicated to empowering Malaysian businesses through technological innovation, with a focus on delivering advanced computing systems for enterprises, research institutions and developers in Malaysia. This agreement paves the way for ARB IOT to supply 500 units of state-of-the-art ARB-222 AI servers (“AI Products”) to provide high-performance immersible computer servers to GKSB in a deal valued at approximately US
This milestone highlights ARB IOT’s commitment to expanding its presence in the rapidly growing data center sector. By tapping into the rising demand for digital assets and leveraging its expertise in AI server solutions, the Company is strategically positioned to seize new opportunities driven by the latest advancements in AI, fostering sustainable growth and value creation for its stakeholders.
Dato’ Sri Liew Kok Leong, CEO of ARB IOT expressed, "Our collaboration with GKSB strengthen our mission to provide leading-edge AI server solutions and to deliver significant cost savings and operational efficiencies to the customers. Such order represents a significant milestone for the Company and highlights the growing demand for the AI Products. This not only strengthens our collaboration but also drives our continued growth and expansion in the market.
As we carry out this agreement with GKSB, our commitment to excellence and innovation remains unwavering. The trust placed in ARB IOT to deliver these state-of-the-art AI Products reflects our shared dedication to enhancing the operational capabilities”.
Muhammad Badrun Almuhaimin Bin Baharon, Director of GKSB emphasised, “We look forward to enhancing our technological capabilities and providing valuable market insights that will enable ARB IOT to better serve the needs of our target audience where AI is universally accessible, leading to diverse applications and breakthroughs across industries”.
About GKSB
GKSB is dedicated to empowering Malaysian businesses through technological innovation, focusing on delivering advanced computing systems for enterprises, research institutions and developers.
About ARB IOT Group Limited
ARB IOT Group Limited is a provider of complete solutions to clients for the integration of Internet of Things (“IoT”) systems and devices from designing to project deployment. We offer a wide range of IoT systems as well as provide customers a substantial range of services such as system integration and system support service. We deliver holistic solutions with full turnkey deployment from designing, installation, testing, precommissioning, and commissioning of various IoT systems and devices as well as integration of automated systems, including installation of wire and wireless and mechatronic works.
Safe Harbor Statement
This press release contains “forward-looking statements” that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, such as statements regarding our estimated future results of operations and financial position, our strategy and plans, and our objectives or goals, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including, but not limited to, those that we discussed or referred to in the Company’s disclosure documents filed with the U.S. Securities and Exchange Commission (the “SEC”) available on the SEC’s website at www.sec.gov, including the Company’s Annual Report on Form 20-F as well as in our other reports filed or furnished from time to time with the SEC. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forwardlooking statements, other than as required by applicable law.
For further information, please contact:
ARB IOT Group Limited
Investor Relations Department
Email: contact@arbiotgroup.com
FAQ
What is the value of ARB IOT's (ARBB) recent AI server supply agreement?
How many AI servers will ARBB deliver under the new supply agreement?
What type of AI servers is ARB IOT (ARBB) providing in the US$45M deal?
Who is the customer for ARBB's US$45M AI server contract?
