The Southeast Asian data center market is experiencing rapid growth, with expectations to reach $17.73 billion by 2029, up from $10.24 billion in 2023, according to a new report titled “Southeast Asia Data Center Market Landscape 2024-2029”.
Major investors in this market include AirTrunk, Digital Edge, ST Telemedia Global Data Centers, Chindata Group, DCI Indonesia, Digital Realty, Equinix, GDS Services, Keppel Data Centres, NTT DATA, Viettel IDC, and others. Additionally, prominent support infrastructure vendors such as ABB, Airedale, Schneider Electric, Cummins, Legrand, Siemens, Eaton, Rittal, and Vertiv are playing significant roles in this growing industry.
New entrants like CtrlS Data Centres, EdgeConneX, Yondr, YTL Data Center, i-Berhad, Gaw Capital, and Evolution Data Centres are making their mark in the Southeast Asia data center market, potentially disrupting the existing landscape and bringing fresh competition to the sector.
Key trends driving the growth of this market include digitalization gaining momentum, with countries like Singapore, Malaysia, Indonesia, Thailand, and the Philippines prioritizing digital initiatives. The adoption and expansion of 5G services and connectivity are also playing vital roles in driving the market forward.
Moreover, the increasing adoption of cloud-based services from global providers like Amazon Web Services, Google, Microsoft, Tencent Cloud, and others is fueling demand for data center services in the region. Technologies such as Artificial Intelligence (AI) and machine learning workloads are further contributing to the growth of the Southeast Asia data center market.
In terms of segmentation, the market is seeing a rise in the establishment of data centers with Uptime Tier III and IV certifications in countries like Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Investments in innovative power and cooling systems focusing on sustainability are also on the rise, with vendors developing more energy-efficient products to meet market demands.
Geographically, countries like Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam are witnessing significant investments and expansions in their data center capabilities. While Singapore remains a top location for data centers, other countries like Malaysia, Indonesia, and others are also becoming attractive destinations for data center investments.
Overall, the Southeast Asia data center market is poised for substantial growth in the coming years, driven by digitalization initiatives, the adoption of cloud-based services, and the expansion of key infrastructure components. With new entrants and major investors entering the market, competition is expected to intensify, leading to further innovations and advancements in the region’s data center industry.
Some key data center markets in the southeastern United States include Alabama, Florida, Virginia, Texas, and Tennessee. These regions have seen significant growth in data center investment and development in recent years. As demand for data storage and processing continues to increase, companies are looking to expand their presence in these key markets to support their digital infrastructure needs. The Southeast Asia data center market is also experiencing rapid growth, with increasing investment and development in countries such as Singapore, Malaysia, and Indonesia. This market is driven by factors such as increasing cloud adoption, digital transformation initiatives, and the rise of data-intensive technologies like AI and IoT. As businesses in both the US and Southeast Asia continue to invest in data center infrastructure, these regions are poised for continued growth in the coming years.