South-east Asian data centres face internal challenges

Significance

These developments are part of a larger trend in South-east Asia: as the fastest-growing digital market in the world, the region is also booming as a destination for foreign investment in data centres.

Impacts

• Data centre growth in South-east Asia will require aggressive strategies to expand power supply and develop sustainable ‘green’ facilities.
• As data centres grow, international firms will face challenges from South-east Asia’s evolving, country-specific regulatory frameworks.
• Investors will seek to address labour shortages in the region by offering major skills training programmes for local populations.
• Data centre investments will support South-east Asian countries’ own digital development goals, particularly in healthcare and education.