Southeast Asia’s data centres and AI infrastructure imperative
Capitalising on a once-in-a-generation opportunity
In a world of growing geopolitical tensions, the ability to store, process, and secure data onshore is critical. This raises urgent questions. Where will all this data reside? Who will power it? How can Southeast Asia build the infrastructure it needs – and do so before it falls behind?
Artificial intelligence (AI) is fuelling an unprecedented surge in data demand – and Southeast Asia is not yet ready to meet this challenge.
Across industries such as manufacturing, mobility, and logistics, next-generation AI applications are starting to replace traditional sensors with high-resolution images, videos, and other data-intensive inputs.
These visual applications require immense computing power and low latency networks to work in real time. As a result, the region is seeing a massive spike in data capacity requirements, far beyond what its existing infrastructure can support.
At the same time, data is becoming a strategic asset and currency. In a world of growing geopolitical tensions, the ability to store, process, and secure data onshore is critical.
The emerging AI value chain
Along with the rise of next-generation AI applications is a value chain that is emerging to support it (see figure below). On the surface, it looks similar to the traditional AI value chain – with the exception of foundational models. But it is this very difference that drives differential value creation across the value chain.
Given the rapid pace of AI’s evolution, all players must continuously reassess their value creation models while adapting and responding to disruptions that can occur at any time.
Move now, and move quickly
National governments, local telecommunications and energy players, and investors must recognise data centres and other AI infrastructure as critical assets of tomorrow – and move now, and move quickly, to build these assets on their shores.
