- Southeast Asia expands AI data centre capacity as governments and operators invest across the region
- Power and grid capacity are emerging as major obstacles to the deployment of new AI data centres
Fact
Southeast Asia has more than 2,000 data centres in operation, with hundreds more under construction. Turner & Townsend estimates that regional investment could reach US$30 billion by 2030. Meeting this demand will require more power, grid capacity and cooling as new facilities grow larger and consume more energy. Developers are responding by working closely with utilities and governments to secure the infrastructure needed to support new projects.
Assessment
Power has become the critical path for AI data centre development in Southeast Asia. Securing land, financing and planning approval no longer guarantees a project will enter service on schedule if the power infrastructure is not ready. Developers are now securing power capacity, grid connections and cooling infrastructure early in a project, alongside land and funding. Project timelines now depend on reliable power availability as much as they do on securing finance.
For BTW readers, the sequencing of data centre development is changing. Power planning is moving to the front of the project, alongside land and funding decisions. Markets that can deliver reliable power sooner are most likely to be the first to bring new AI capacity online.
What to watch
Watch for AI data centre projects that include dedicated power infrastructure, grid upgrades or partnerships with utilities. Projects that include dedicated power infrastructure or utility partnerships will show that developers are treating power planning as part of project delivery rather than waiting for grid connections.