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.
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