When asked where we’re setting our sights next, my answer is unfailingly Southeast Asia (SEA). The region is full of potential, with a digital economy that grew 14% to US$89 billion in 2024. Driven by an urgency to shift toward sustainable revenue growth, businesses there have seen profits surge 2.5x since 2022, according to a report by Google, Temasek, and Bain. With the right policies and infrastructure, the region could become a US$1 trillion digital economy by 2030, offering significant opportunities for long-term investors.
Emerging sectors such as cloud, fintech, e-businesses, sustainability tech, and AI are set to lead the next wave of growth. These future tech businesses will require strong digital infrastructure, creating a major opportunity for cloud providers and hyperscalers to build the foundation that could propel the region into a global technology hub.
Fueling the region’s digital momentum
Despite Southeast Asia’s strong potential, digital inequality remains a challenge. Not all countries have the talent, regulatory environment, or infrastructure needed to support their digital economies. Those that do will soon face capacity constraints as demand for data localisation and cloud services grows. This is intensifying competition in the region’s consumer market, especially in areas such as IoT, 5G, and AI.
This presents a clear opportunity for data centre providers and hyperscalers to support emerging businesses as they scale. Demand is already rising — the region’s data centre market is projected to grow at a 12.3% CAGR through 2030. Malaysia, for instance, is expanding its data centre capacity from 1.6 GW to 5 GW by 2035, according to CNBC. Thailand, Indonesia, and Singapore continue attracting major cloud players, reinforcing SEA’s position as a digital growth engine.
Even so, there is still room to grow. Youthful curiosity, digital talent, and strong government backing are fuelling the increasing use of AI to drive productivity, innovation, and efficiency — with AI compute activity expected to increase tenfold by 2030. To meet this demand, newly launched sites such as NARRA1 in Manila and EDGE2 in Jakarta have been built to support higher power density deployments and accommodate AI workloads.
To sustain this AI momentum, SEA must continue scaling its data capacity as both public and private sectors integrate AI into operations. Currently, only six of the region’s ten member nations have made meaningful strides in AI adoption, according to the Southeast Asia Public Policy Initiative. Future demand will rise as the others catch up and build AI-empowered digital economies. In turn, demand for highly available, scalable data services will increase, opening further opportunities for digital infrastructure providers.
Regulatory pressures are shaping the future
As Southeast Asian governments introduce new policies around energy efficiency, environmental standards, and infrastructure performance, financial support is aligning accordingly. More than US$6.3 billion has already been allocated for data centres that meet these evolving requirements, according to CNBC, with further investments to come down the line.
Some may see these regulations as constraints, but I disagree. Employed strategically, sustainability and environmental certifications can differentiate industry players in the eyes of governments and investors. ESG certifications recognised in the region — such as EcoVadis ratings, EDGE renewable energy certifications, or LEED certifications — are becoming important markers of compliance and credibility for operators in Southeast Asia.
Innovations such as climate and energy-saving systems, along with close collaboration between data centre operators, utility providers, and regional stakeholders, will be critical to ensuring operations are scalable and compliant. Financing mechanisms that support sustainability-aligned infrastructure projects are also becoming increasingly important as the region works to modernise infrastructure while meeting evolving environmental and efficiency expectations.
Positioning for the future
SEA’s maturing digital economy presents huge opportunities for those who can position themselves as key enablers of growth. As competition intensifies — driven by surging investment, 5G and AI, and rising data demand — digital infrastructure providers must act fast or lose out.
By partnering with experienced data centre operators, they can meet growing needs for data localisation and cloud services while supporting sustainability goals. These collaborations offer more than market entry; they enable providers to help shape Southeast Asia’s digital future and secure a role in the innovation wave transforming the region into a global digital powerhouse.
