•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Southeast Asia is at the center of an ongoing wave of data center construction, with demand for artificial intelligence expected to grow tenfold. Capacity in the region is forecast to triple by 2030 as technology companies commit billions of dollars to expand cloud and AI infrastructure.
While governments across the region are welcoming investment and positioning data centers as engines of economic growth and digital sovereignty, the physical infrastructure needed to support the expansion is under strain—particularly electricity supply. Data centers serving AI require high-density, continuous power, and aging grids are being asked to handle workloads they were not designed for.
Energy intensity is a key challenge. In addition, Southeast Asia’s tropical climate increases cooling demand: cooling can consume up to 40% of a data center’s total energy, tightening operating margins.
The International Energy Agency (IEA) projects that energy consumption in ASEAN will more than double by 2030 compared with 2024 levels. Several countries face sharper increases. Malaysia, for example, is described as one of the region’s fastest-growing data center hubs, with electricity demand potentially rising sevenfold by 2030—an increase equivalent to Singapore’s entire 2023 consumption.
Indonesia’s situation is complicated by its energy mix, which still relies on coal for more than 60% of total supply. That creates additional pressure for sustainability commitments as companies face mounting scrutiny.
To improve efficiency and meet stringent energy-use standards, an increasing share of operators are turning to real-time monitoring and optimization technologies to manage power usage effectiveness (PUE). Nearly two-thirds of Asia-Pacific investors plan to deploy smart-building technology and AI-driven optimization within the next five years.
Energy access is also becoming a more prominent site selection criterion. As a result, capital is shifting toward secondary markets where land and power availability are more favorable, including Ho Chi Minh City.
Tropical conditions are pushing countries to raise standards for adaptive measures and to redefine what responsible data center development means in practice. Singapore is studying near-shore floating data centers that use seawater for cooling to reduce dependence on freshwater and improve energy efficiency. In Hong Kong, the approach is to retrofit industrial buildings into data centers and adapt existing assets.
The article outlines three prominent routes to address the energy gap without undermining environmental goals or slowing investment momentum.
A tri-country AI corridor was announced earlier this year, following the Johor-Singapore Economic Zone launch in 2024. In this model, Singapore is positioned as the advanced technology hub, Johor provides land and accessible electricity for large-scale AI facilities, and Batam helps optimize costs and expand the market through proximity to Indonesia’s demand.
Operators are increasingly signing long-term power purchase agreements (PPAs) for future renewable energy capacity. These 10–25 year contracts are designed to lock in prices and provide financial certainty for capital-intensive projects. As regional energy prices rise due to fuel volatility, the defensive value of long-term procurement is described as growing alongside its green attributes.
The article also notes that operators may broaden beyond renewables to other low-carbon energy sources, including ammonia or hydrogen. In parallel, Asian groups and governments are testing the feasibility of small modular reactors (SMRs) to deliver continuous power at the scale needed for AI infrastructure.
Unbalanced policies are described as hindering investment flows. Southeast Asia remains a patchwork of regulatory environments, with differences in renewable access and grid maturity limiting investment in some markets. Singapore, for example, is said to command high data center rents due to policy certainty and strict PUE standards under its Green DC roadmap, while Indonesia faces licensing bottlenecks and a coal-heavy energy mix.
Overall, the expansion of data centers across Asia is accelerating, but the challenge of powering the next generation of digital infrastructure is only beginning. The leading markets, the article concludes, will be determined less by land availability or fiber speed and more by the ability to provide stable, scalable, and environmentally friendly electricity.
According to Nikkei Asia
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
