Southeast Asia Data Center Construction Market - Industry Outlook & Forecast 2026-2031
Description
The Southeast Asia data center construction market size by investment is expected to grow at a CAGR of 17.83% from 2025 to 2031.
SOUTHEAST ASIA DATA CENTER CONSTRUCTION MARKET KEY TRENDS
Sustainability Initiatives and Renewable Energy
1. How big is the Southeast Aisa data center construction market?
2. What is the estimated market size in terms of area in the Southeast Aisa data center construction market by 2031?
3. What is the growth rate of the Southeast Aisa data center construction market?
4. What are the key trends in the Southeast Aisa data center construction market?
5. How many MW of power capacity is expected to reach the Southeast Aisa data center construction market by 2031?
SOUTHEAST ASIA DATA CENTER CONSTRUCTION MARKET KEY TRENDS
Sustainability Initiatives and Renewable Energy
- Data centers are heavy consumers of energy, contributing significantly to emissions. Nevertheless, the impact of these emissions can be reduced by transitioning to sustainable energy sources such as green hydrogen and solar power. Most of the data is currently being stored in data centers worldwide. It is estimated that data centers alone are likely to account for approximately 8% of the total energy consumption by 2030.
- Indonesia aims to achieve its net-zero carbon emissions target by 2060; hence, it focuses on producing its electricity from renewable sources significantly. The country is committed to generating over 48% of its electricity through renewables by 2030. Furthermore, the country is making significant efforts to generate around 23% of electricity from renewable sources in 2025. In July 2025, NeutraDC partnered with Medco Power, a renewable energy developer, to deploy solar power at its data center facility in Batam, Indonesia.
- Singapore aims to reduce its greenhouse gas emissions to around 60 million tons of CO₂ equivalent by 2030, to reach net-zero emissions by 2050. Under the Singapore Green Plan 2030, the key targets include increasing the adoption of renewable energy, enhancing energy efficiency across industries, transforming 80% of buildings into green structures by 2030, and deploying at least 2 GWp of solar energy by 2030. These initiatives reflect the strong commitment of Singapore to sustainability, energy transition, and climate resilience, which are in alignment with the global decarbonization goals.
- The rising demand for high-density computing, AI workloads, and edge deployments in Southeast Asia pushes data centers to adopt innovative technologies such as advanced cooling systems and next-gen generators. Hot and humid climates, coupled with increasing energy costs, make efficiency and sustainability quite critical. As uptime expectations grow, operators will invest in resilient infrastructure to meet the performance and environmental goals.
- As AI workloads increase and rack power density rises, liquid cooling is likely to become essential for data center operators. For example, AirTrunk has implemented liquid cooling in the initial phase of its JHB1 campus in Malaysia, resulting in notable energy efficiency improvements. Also, in May 2025, Equinix JK1, situated in the Central Business District of Jakarta, integrated sustainability into its design by utilizing advanced technologies such as cooling arrays and liquid cooling systems.
- YTL Data Center’s development in Johor, Malaysia, supported by partnerships within the AI ecosystem, including the NVIDIA-aligned AI infrastructure deployments, is being built with provisions for liquid cooling at scale. The site is promoted as a sustainable digital hub, powered by renewable energy sources to reduce the total operational emissions.
- The electrical infrastructure is witnessing several innovations in the UPS systems, generators, transfer switches & switchgears and other electrical equipment. Some of such innovations include HVO fuel for generator sets which reduces emission as a measure to curb emissions.
- Additionally, several innovative UPS batteries such as Nickel-Zinc (NiZn) and Sodium-Ion batteries are gaining traction in the market due to their high power density, safety, sustainability, and other factors.
- Liquid cooling is becoming a significant trend that major colocation operators are implementing in their data center facilities. It is emerging as a key differentiator for colocation providers as AI and compute-intensive workloads continue to grow. Companies like Equinix, Princeton Digital Group, Microsoft, and Bridge Data Centres are leading the way by offering scalable and energy-efficient solutions that can support the increasing demands of high-performance computing.
- In Southeast Asia data center construction market, Malaysia is expected to be the largest market in 2031 in terms of power capacity, with a share of around 47% in 2031.
- Several key drivers are propelling the growth of data centers in Malaysia. The strategic location of the country offers significant connectivity, allowing for efficient access to critical regional markets. This connectivity is enhanced by a well-developed infrastructure that supports seamless data transmission. Malaysia at present has 24 operating submarine cables, with an additional six of them slated for launch in the coming three to four years.
- Indonesia emerges as a key player in the Southeast Asia data center market, showcasing substantial growth potential. The proactive digital transformation initiatives by the government, alongside the increasing implementation of AI technologies and growing submarine connectivity, drive significant investments in the data center infrastructure of the country. As of 2025, the construction cost of data centers in Indonesia ranged from $8 million to $9 million per MW, making it a more affordable option compared to other regional hubs such as Singapore and Malaysia.
- In Thailand, the Thai Board of Investment (BOI) is committed to promoting key sectors, which include the development of clean energy solutions. They are at present establishing a Direct PPA, specifically for the data center industry, as well as refining digital regulations and laws to support the advancements in AI and digital technologies.
- In the month of May-June of 2025, six new projects were approved by Thailand BOI with a cumulative investment of $3.6 billion (521.2 billion baht). Five among them are the new entrants to the Thailand market that include Galaxy Data Centers, Galaxy Peak Data Centers, ZDATA Technologies (Stratus Technologies), Vistas Technologies, and Digital Edge DC. The one existing investor is Bridge Data Centres.
- The data center area addition in the Philippines is on a consistent growth trajectory. In 2025, the country witnessed a data center area addition of 185 thousand sq ft, and is expected to garner 2,260 thousand sq ft of area addition between 2026 and 2031.
- The Southeast Aisa data center construction market has the presence of key investors such as AirTrunk, Alibaba Cloud, AWS, Bridge Data Centres, DayOne, DCI Indonesia, Digital Edge DC, Digital Realty, Equinix, Google, Keppel Data Centres, Microsoft, Nxera, Princeton Digital Group, ST Telemedia Global Data Centres, Vantage Data Centers, YTL Data Center and others.
- The Southeast Asia data center construction market continues to attract large-scale investments from major operators. For example, in June 2025, DayOne obtained more than $3.54 billion (RM15 billion) in new debt financing to enhance its operations in Malaysia's data center sector. The investment is aimed at bolstering the infrastructure of the company to meet the growing demands for data processing and storage services in the region.
- New Entrants include A-FLOW, Beeinfotech PH, BRIGHT RAY, BW Digital, CloudHQ, CtrlS Datacenters, CURRENC Group, DAMAC Digital, Digital Halo, Doma Infrastructure Group, Epoch Digital, Evolution Data Centres, Galaxy Data Centers, Gaw Capital, Global Telecommunications, Haoyang Data, i-Berhad, Infinaxis Data Centre Holdings, Infracrowd Capital, NEXTDC, SC Zeus Data Centers, SEAX Global, Siagon Asset Management, STACK Infrastructure, TikTok, YCO Cloud, ZDATA Technologies and several others.
- In Indonesia, Microsoft launched its first data center in May 2025 and is expected to contribute around $2.5 billion to the economy and create 60,000 jobs by 2028. In addition, it is also likely to support digital training for one million people, with 840,000 already participating in AI capability-building.
- In June 2025, Equinix completed the acquisition of three data centers in Manila, Philippines, from Total Information Management (TIM), a prominent technology solutions provider, marking the official entry of the company into the Philippine market. The cost of the acquisition was around $180 million.
- Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
- Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
- Cooling System
- CRAC & CRAH Units
- Chillers Units
- Cooling Towers, Condensers, and Dry Coolers
- Other Cooling Units
- Cooling Techniques
- Air-based Cooling Technique
- Liquid-based Cooling Technique
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
- Tier Standards
- Tier I & Tier II
- Tier III
- Tier IV
- Geography
- Singapore
- Indonesia
- Malaysia
- Philippines
- Vietnam
- Thailand
- Other Southeast Asian Countries
- ABB
- Aggreko
- Airedale
- Bosch
- Caterpillar
- Cummins
- Cyber Power Systems
- Delta Electronics
- Eaton
- EKG M & E
- Fuji Electric
- HITEC Power Protection
- Johnson Controls
- Legrand
- Mitsubishi Electric
- Narada
- Piller Power Systems
- Rehlko
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- Socomec Group
- STULZ
- Systemair
- TECO Electric & Machinery
- Trane
- Vertiv
- ZTE
- Advance Power Engineering
- AECOM
- AEON SERVICES
- Aesler Grup
- AO Construction
- Apave
- Arcadis
- Archetype Group
- Architects 49
- ARKONIN
- Arup
- Asdi Swasatya
- Asima Architects
- AtkinsRealis
- Aurecon
- AVO Technology
- AWP Architects
- BECA
- B-Global Tech
- Binastra Corporation
- CCIE Engineering
- Chaan
- Comfac
- Critical Holdings Berhad
- CSF Group
- CTC-Global
- Cundall
- Cyclect Group
- Data Center Design Corporation (DCDC)
- DCD Technology
- Design Coordinates
- DSCO Group
- Endec Group
- Exyte (M+W Group)
- Finishing Touch Design Studio
- First Balfour
- Fortis Construction
- Gammon Construction
- Gamuda
- GCM Technologies
- Gensler
- Greatians Consulting
- GreenViet
- HSS Engineers
- IJM Corporation
- Infraset
- INHERIT TECHNOLOGY ENGINEERING
- ISG
- Jaya Karya Integrasi
- JSLA Architects
- Jurutera JRK
- Kienta Engineering Construction
- Kajima Corporation
- LandArc Associates
- Leighton Asia
- Linesight
- LSK Engineering
- Mace
- Meg Consult
- Megawide Construction Corporation
- Meinhardt Group
- MES Group
- Mitrajaya Holdings
- MN Holdings
- Monocrete
- Nakano Corporation
- NTT Facilities
- OWH Consulting
- Parker, van den Bergh
- PKT Quantity Surveyors
- Plan Architect
- PM Group
- PMX Malaysia
- Powerware Systems
- PT Acset Indonusa Tbk
- PT AtoZ Teknik
- PT Berca Buana Sakti
- PT Indokoei International
- PT Jaya Obayashi
- PT Jaya Teknik Indonesia
- PT PP
- PT SMI
- PT Sumaraja Indah
- PT Total Bangun Persada Tbk
- PPS Group
- PRONET
- QTCG
- Ramboll
- RDC Arkitek
- RED Engineering
- S5 Engineering
- Sato Kogyo
- Shaw Architect
- SOL E&C
- Sunway Construction Group
- Syntec Construction
- Syska Hennessy Group
- Taikisha
- Tarnas
- Tetra
- Thornton Tomasetti
- Turner & Townsend
- Unique Central
- USDC Technology
- Vale Architects
- VINCI Energies
- WT Asia
- AIMS Data Centre
- AirTrunk
- AIS Business
- Alibaba Cloud
- AWS
- BDx Data Centers
- Bitera Data Centers
- Biznet Data Center
- Bridge Data Centres
- China Mobile
- CMC Telecom
- Converge ICT Solutions
- Datacomm Diangraha
- DayOne
- DCI Indonesia
- Digital Edge DC
- Digital Hyperspace Indonesia
- Digital Realty
- DITO Telecommunity
- EdgeConneX
- Elitery
- Empyrion Digital
- Epsilon Telecommunications
- ePLDT
- Equinix
- Etix Everywhere
- FPT Telecom
- Global Switch
- Hanoi Telecom (ECODC)
- IDC Indonesia
- IndoKeppel Data Centres
- Internet Thailand
- Iron Mountain
- K2 Strategic
- Keppel Data Centres
- Mapletree
- MettaDC
- Microsoft
- Nxera
- NTT DATA
- OneAsia Network
- Open DC
- Princeton Digital Group
- Pure Data Centres
- Racks Central
- SM+
- ST Engineering
- ST Telemedia Global Data Centres
- SUPERNAP Thailand
- Telehouse
- Telekom Malaysia
- Telin Singapore
- Telkom Indonesia (NeutraDC)
- Tencent Cloud
- True Internet Data Center (True IDC)
- Vantage Data Centers
- Viettel IDC
- VNPT
- VNTT
- WHA group
- YTL Data Center Holdings
- A-FLOW
- Aslan Energy Capital
- Beeinfotech PH
- BRIGHT RAY
- BW Digital
- CloudHQ
- CtrlS Datacenters
- CURRENC Group
- DAMAC Digital
- Digital Halo
- Diode Ventures
- Doma Infrastructure Group
- Epoch Digital
- Evolution Data Centres
- FutureData
- Galaxy Data Centers
- Gaw Capital
- Global Telecommunications
- Haoyang Data
- i-Berhad
- Infinaxis Data Centre Holdings
- Infracrowd Capital
- Minoro Energi
- NEXTDC
- SC Zeus Data Centers
- SEAX Global
- Siagon Asset Management
- STACK Infrastructure
- TikTok
- YCO Cloud
- ZDATA Technologies
1. How big is the Southeast Aisa data center construction market?
2. What is the estimated market size in terms of area in the Southeast Aisa data center construction market by 2031?
3. What is the growth rate of the Southeast Aisa data center construction market?
4. What are the key trends in the Southeast Aisa data center construction market?
5. How many MW of power capacity is expected to reach the Southeast Aisa data center construction market by 2031?
Table of Contents
284 Pages
- 1. ABOUT ARIZTON
- 2. ABOUT OUR DATA CENTER CAPABILITIES
- 3. WHAT’S INCLUDED
- 4. SEGMENTS INCLUDED
- 5. RESEARCH METHODOLOGY
- 6. MARKET AT GLANCE
- 7. PREMIUM INSIGHTS
- 8. INTRODUCTION
- 9. INVESTMENT OPPORTUNITIES
- 9.1. INVESTMENT: MARKET SIZE & FORECAST
- 9.2. AREA: MARKET SIZE & FORECAST
- 9.3. POWER CAPACITY: MARKET SIZE & FORECAST
- 10. MARKET DYNAMICS
- 10.1. MARKET OPPORTUNITIES & TRENDS
- 10.2. MARKET GROWTH ENABLERS
- 10.3. MARKET RESTRAINTS
- 10.4. SITE SELECTION CRITERIA
- 11. FACILITY TYPE SEGMENTATION
- 11.1. HYPERSCALE DATA CENTERS
- 11.2. COLOCATION DATA CENTERS
- 11.3. ENTERPRISE DATA CENTERS
- 12. INFRASTRUCTURE SEGMENTATION
- 12.1. ELECTRICAL INFRASTRUCTURE
- 12.2. MECHANICAL INFRASTRUCTURE
- 12.3. COOLING SYSTEMS
- 12.4. COOLING TECHNIQUES
- 12.5. GENERAL CONSTRUCTION
- 13. TIER STANDARDS SEGMENTATION
- 14. GEOGRAPHY SEGMENTATION
- 15. SOUTHEAST ASIA
- 15.1. MARKET SNAPSHOT & KEY HIGHLIGHTS
- 15.2. DATA CENTER MARKET BY SUPPORT INFRASTRUCTURE
- 16. SINGAPORE
- 16.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN SINGAPORE
- 16.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
- 16.3. MARKET BY INVESTMENT
- 16.4. MARKET BY AREA
- 16.5. MARKET BY POWER CAPACITY
- 16.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
- 16.7. LIST OF UPCOMING DATA CENTER PROJECTS IN SINGAPORE
- 17. INDONESIA
- 17.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN INDONESIA
- 17.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
- 17.3. MARKET BY INVESTMENT
- 17.4. MARKET BY AREA
- 17.5. MARKET BY POWER CAPACITY
- 17.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
- 17.7. LIST OF UPCOMING DATA CENTER PROJECTS IN INDONESIA
- 18. MALAYSIA
- 18.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN MALAYSIA
- 18.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
- 18.3. MARKET BY INVESTMENT
- 18.4. MARKET BY AREA
- 18.5. MARKET BY POWER CAPACITY
- 18.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
- 18.7. LIST OF UPCOMING DATA CENTER PROJECTS IN MALAYSIA
- 19. THAILAND
- 19.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN THAILAND
- 19.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
- 19.3. MARKET BY INVESTMENT
- 19.4. MARKET BY AREA
- 19.5. MARKET BY POWER CAPACITY
- 19.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
- 19.7. LIST OF UPCOMING DATA CENTER PROJECTS IN THAILAND
- 20. PHILIPPINES
- 20.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN THAILAND
- 20.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
- 20.3. MARKET BY INVESTMENT
- 20.4. MARKET BY AREA
- 20.5. MARKET BY POWER CAPACITY
- 20.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
- 20.7. LIST OF UPCOMING DATA CENTER PROJECTS IN PHILIPPINES
- 21. VIETNAM
- 21.1. IMPACT OF AI ON THE DATA CENTER INDUSTRY IN VIETNAM
- 21.2. GOVERNMENT RULE AND REGULATION FOR DATA CENTER
- 21.3. MARKET BY INVESTMENT
- 21.4. MARKET BY AREA
- 21.5. MARKET BY POWER CAPACITY
- 21.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
- 21.7. LIST OF UPCOMING DATA CENTER PROJECTS IN VIETNAM
- 22. REST OF SOUTHEAST ASIA
- 22.1. MARKET BY INVESTMENT
- 22.2. MARKET BY AREA
- 22.3. MARKET BY POWER CAPACITY
- 22.4. KEY SUPPORT INFRASTRUCTURE ADOPTION
- 23. MARKET PARTICIPANTS
- 23.1. KEY DATA CENTER SUPPORT INFRASTRUCTURE PROVIDERS
- 23.2. KEY DATA CENTER CONTRACTORS & SUBCONTRACTORS
- 23.3. KEY DATA CENTER INVESTORS
- 23.4. NEW ENTRANTS
- 24. QUANTITATIVE SUMMARY
- 25. APPENDIX
- 25.1. ABBREVIATIONS
- 25.2. DEFINITIONS
- 25.3. SEGMENTAL COVERAGE
Search Inside Report
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
