Malaysia's utilities sector is expected to benefit from accelerating data-center developments, which are driving sustained growth in electricity demand, Hong Leong IB analyst Daniel Wong says in a note. Geopolitical shifts have encouraged Western data-center operators to diversify away from Middle East to Southeast Asia, he notes. 2H's utilities demand could remain strong, driven by continued ramp-up in data-center deployments, he says. He expects continued investment in power plants, renewable energy, battery storage and liquefied natural gas infrastructure to support rising demand. Hong Leong maintains an overweight rating on Malaysia's utilities sector, citing the sector's earnings and dividend sustainability. It pegs Tenaga Nasional and YTL Power International as its top picks. (yingxian.wong@wsj.com)