Gorilla Swings 13% Higher on $1.4B Freyr Deal in Southeast Asia

Core Insights - Gorilla Technology Group Inc. (GRRR) shares increased by 13.1% following the announcement of a significant $1.4 billion contract with Freyr to develop AI-driven data centers in Southeast Asia [1][7] Company Developments - The three-year agreement involves Gorilla leading the construction, deployment, and management of AI data centers in Indonesia, Malaysia, and Thailand, starting with a $300 million initial phase in Indonesia set for Q4 2025 [2][7] - Gorilla will operate the data centers, ensuring service levels and uptime, while Freyr will support regional expansion [2] - The deal is designed for scalability, with potential extensions of up to two additional years and new projects valued at $2.5 billion anticipated beyond the initial contract [3] Market Position - The Southeast Asian data center market is projected to exceed $12-$15 billion, positioning Gorilla at the forefront of this growth by securing a prominent customer and collaborating with Freyr [4] - Gorilla's proprietary AI stack will be deployed, enhancing performance across co-location facilities [3] Financial Performance - Despite the recent share price increase, Gorilla Technology has only gained 11.1% year-to-date, underperforming the broader industry [6] - The company trades at a forward price-to-sales ratio of 3.41X, slightly below the industry average of 3.50X [9] - The Zacks Consensus Estimate predicts a 115.8% year-over-year improvement in earnings for 2025, followed by a 12.4% growth in the subsequent year [9][10]