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Where Are Southeast Asia's Data Centres?

Malaysia accounts for over half of Southeast Asia's under-construction data centre capacity, driven by streamlined permitting and rising AI and cloud computing demand.

  • Leading the region, Malaysia accounts for over half of under-construction data centre capacity among five countries, with rapid growth in Johor and tighter resource requirements; Freeman said Malaysia 'moves faster largely because of its streamlined, standardised permitting system and predictable utility allocation,' Freeman told AFP.
  • Because of soaring AI and cloud demand, Singapore halted new data-centre developments between 2019 and 2022, prompting tech firms to invest elsewhere, as Freeman said, `In contrast, Thailand, Indonesia, and the Philippines each face structural barriers that slow project timelines, despite strong demand and growing investment interest`.
  • Permitting and utility clarity give Malaysia an edge, as Michael Freeman, regional director for Malaysia, Thailand and Vietnam at Turner and Townsend, said, `In contrast, Thailand, Indonesia, and the Philippines each face structural barriers that slow project timelines, despite strong demand and growing investment interest`.
  • Cloud giants are signing renewable and infrastructure deals, with a US company investing $1.7 billion in Indonesia and Google launching a Bangkok cloud region in January, contributing over $40 billion in economic value.
  • KPMG says emerging markets including Thailand, India, Indonesia and the Philippines are nascent but have immense growth potential, while Freeman said Indonesia faces slow renewable approvals and unreliable power.
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Where are Southeast Asia's data centres?

New data centres are springing up worldwide as demand soars for artificial intelligence and cloud computing, with Asia one of the sector's fastest growing regions.

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rtl.lu broke the news in Luxembourg City, Luxembourg on Thursday, February 26, 2026.
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