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View all search resultsSoutheast Asia’s AI boom tests data center sustainability
Indonesia is emerging as a potential growth hub as Singapore and Malaysia expand their data center capacity, but power supply, cooling demands and cybersecurity remain key challenges.
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Computing infrastructure: A scale model of Delta’s data center microgrid solution, integrating energy storage, renewable energy and backup power systems, is displayed during the 12th edition of Tech Week Singapore, which ran from Sept. 29 to 30 at Marina Bay Sands Expo & Convention. (JP/Aruna Harjani)
T
he artificial intelligence boom is driving rapid expansion of digital infrastructure across Southeast Asia, raising questions about how to meet demand without increasing energy use and exacerbating environmental costs. These issues were evident at Tech Week Singapore from Sept. 29 to 30, where equipment suppliers drew crowds at exhibitions such as Data Center World Asia and Cloud and AI Infrastructure.
As AI systems become more complex, operators face mounting pressure to deliver greater computing capacity while curbing electricity and water consumption by the vast, stand-alone facilities being erected across the globe today.
"Data centers evolved from computer rooms used by governments, banks and large institutions during the 1950s and 1960s," said Srini Rao, head of ecosystems at Novagate Cloud.
The scale of this infrastructure varies considerably across Southeast Asia.
According to Pritesh Swamy, senior director at Cushman & Wakefield’s Asia Pacific Data Centre Group (DCG), Singapore had operational capacity of approximately 1,068 megawatts (MW) this year 2026, with another 232 MW in development and 200 MW allocated under its second Data Centre Call for Application.
Indonesia has 468 MW of operational capacity and nearly 2,000 MW in development.
Meanwhile, Malaysia leads the three markets with 1,318 MW operational capacity and 5,438 MW in its development pipeline.
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