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ASEAN Data Center Trends Driving Growth and Investment Opportunities (2025-2028)

Report Code: DC-20256-5
Author : DCPulse
Published On - Jun, 2025
Last Updated On - Jun, 2025
Report Covered
  • Data-Driven Insights
  • Competitive Landscape
  • Market Trends
Tags :
ASEAN Data Center Singapore Malaysia

The ASEAN Colocation Data Center Market Size

The ASEAN colocation data center market is growing from USD 2,284.8 million in 2024 to an estimated USD 7,788.6 million in 2028. This is an impressive compound annual growth rate (CAGR) of about 20.7%. The ASEAN region is rapidly emerging as a key hub for data center colocation, propelled by the swift uptake of digital technologies, rising demand for cloud and IT services, and the expanding influence of AI applications. While Singapore continues to lead in capacity and infrastructure sophistication, countries like Malaysia and Indonesia are witnessing remarkable growth. For instance, Tenaga Nasional Berhad (TNB) estimates, Malaysia's data center capacity was nearly non-existent in 2019 but it is currently projected to reach 5,000 megawatts (MW) by 2035, surpassing Singapore's projected growth rate of just 10%.

This rapid expansion is driven by government incentives and affordable land prices, attracting major hyperscale companies such as YTL, AWS, and Meta. However, sustainability concerns, especially regarding water and energy usage, are beginning to emerge.


Table of contents

Executive Summary
Introduction
Market Overview
Increasing spike in data consumption
Surge in Digital Economy Fuels Data Center Demand
Hyperscale Expansion
Rising penetration of internet & social media
Accelerating Demand for AI, Edge Computing, and 5G Infrastructure
Decentralization Beyond Singapore
Data Sovereignty Fuels Localised Infrastructure
Geopolitical Shifts Drive Investment
Government Initiative Drive
The data center industry will be dominated by data center operators who are capable of managing their capex per MW for two primary reasons:
Overview
Average Asean Greenfield Investment in Communications, Data Processing And Hosting Services, (USD Million), 2016-2023
Zoning, Water and Land Use Restrictions
Balancing Growth with Sustainability
Network latency and subsea connectivity gaps
Complex Regulatory Frameworks and Inconsistent Policies
Top key player operating in ASEAN Region
Net-zero commitments of key data-centre operators active in ASEAN
Data Centre Operators
Data Centre Investors

About the Author

DCPulse is a leading provider of data center market research and analysis. Specializing in infrastructure trends, cloud and colocation insights, and emerging technologies, the firm delivers actionable intelligence to support strategic decisions across the global data center industry.

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