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

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Key Takeaways

  • Gorilla signed a $1.4B three-year contract with Freyr to deploy AI-driven data centers in Southeast Asia.
  • The partnership launches with a $300M Indonesia phase in Q4 2025, where Gorilla will be the main operator.
  • The scalable deal may extend two years and could expand into $2.5B in additional regional projects.

Gorilla Technology Group Inc. (GRRR - Free Report) shares jumped 13.1% yesterday after it announced that it has secured a landmark deal that places it in the spotlight of Southeast Asia’s AI infrastructure race. The company signed a three-year contract worth $1.4 billion with Freyr in Singapore, an infrastructure platform.

Under this agreement, Gorilla will take the lead in building, deploying and managing a backbone of AI-driven data centres across Indonesia, Malaysia and Thailand. The partnership begins with a $300 million initial phase in Indonesia scheduled to start in the fourth quarter of 2025. Gorilla’s role is not limited to construction; it will be the main operator, overseeing service levels, uptime commitments, and GPU-as-a-Service infrastructure, while Freyr acts as the regional expansion partner.

The deal is structured for scalability. After the initial three years, extensions of up to two additional years are available, and the alliance is already eyeing new data centre projects valued at $2.5 billion beyond this contract. Gorilla will deploy its proprietary AI stack, including orchestration software and real-time monitoring tools, ensuring performance across co-location facilities. The partnership highlights Gorilla’s deep regional knowledge, technical strength and ability to execute on large-scale AI projects.

Southeast Asia’s data centre market is projected to cross $12-$15 billion in the future. By securing a high-profile customer and aligning with Freyr, Gorilla positions itself at the core of this growth wave. With site selection and systems integration already underway, AI services are scheduled to go live early next year.

How Are GRRR’s Rivals Accelerating Global Growth?

Top peers, such as Palo Alto Networks, Inc. (PANW - Free Report) and Zscaler, Inc. (ZS - Free Report) , are rapidly expanding globally via strategic acquisitions. Palo Alto acquired the startup Protect AI, enhancing its AI security posture management capabilities and strengthening its Prisma AIRS platform. Meanwhile, Zscaler is bolstering its Zero Trust Exchange architecture through several key buyouts. It acquired Red Canary, a longtime leader in managed detection and response, expanding its ability to detect, investigate and respond to threats across endpoints, network, cloud and identity domains. Zscaler earlier purchased Avalor, a data-fabric security startup.

Gorilla Technology’s Price Performance, Valuation and Estimates

Despite the recent jump, shares of Gorilla Technology have gained only 11.1% year to date, underperforming the broader industry.

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From a valuation standpoint, Gorilla Technology trades at a forward price-to-sales ratio of 3.41X, below the industry average of 3.50X. GRRR carries a Value Score of F.

The Zacks Consensus Estimate for Gorilla Technology’s 2025 earnings implies a 115.8% improvement year over year, followed by 12.4% growth next year.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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