Southeast Asia Data Center Investments to Surpass USD 35.08 Billion by 2031 as Malaysia, Indonesia, and Thailand Lead Expansion | Arizton

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According to recent research by Arizton, the Southeast Asia data center market is expected to attract investments of USD 35.08 billion by 2031, growing at a CAGR of 14.32% during the forecast period. The region is witnessing strong infrastructure expansion as operators increase colocation capacity, secure power-ready locations, and expand hyperscale developments across key markets. Malaysia continues to lead the region in data center development, while Indonesia, Thailand, Vietnam, and the Philippines are gaining momentum as new investments accelerate across Southeast Asia.

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Southeast Asia Data Center Market Size and Share
Market Investment (2031): USD 35.08 Billion
Market Size - Investment (2025): USD 15.72 Billion
CAGR - Investment (2025-2031):14.32%
Market Size - Area (2031):5.83 Million Square Feet
Power Capacity (2031):1,435 Mw
Historic Year:2022-2024
Base Year:2025
Forecast Year:2026-2031
Market Segmentation: Facility Type, Infrastructure, It Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standard, Geography
Geographic Analysis: Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, And Rest of Southeast Asia Countries

Power Availability Is Redefining Where Southeast Asia Data Center Capacity Gets Built
The Southeast Asia data center market is increasingly being shaped by power availability and electricity costs, influencing where new capacity gets built. While Singapore remains a major digital infrastructure hub, higher power costs and limited expansion capacity are encouraging data center investments in markets such as Malaysia, Indonesia, and Thailand. In 2025, Malaysia accounted for 67.23% of total power capacity added across Southeast Asia, followed by Indonesia at 14.29% and Thailand at 7.99%, while Singapore contributed less than 1% to overall expansion. Batam, Indonesia, is also gaining momentum due to its reliable power supply, with DayOne developing a new data center campus with around 72 MW of IT load capacity, highlighting the growing shift toward markets with stronger power readiness and room for expansion.

Billion-Dollar Investments Are Expanding Southeast Asia's Data Center Capacity
• In September 2025, ZDATA Technologies sought a $500 million loan to support its upcoming Johor, Malaysia data center project, highlighting rising investment interest near the Singapore border.

• Vantage Data Centers raised $1.6 billion to expand its APAC footprint, including the acquisition of a Johor data center campus expected to scale to 300 MW at full buildout.

• DayOne secured over $3.54 billion in financing to support the expansion of its Johor data center operations, reinforcing Malaysia's growing role in regional infrastructure growth.

• Thailand approved six new data center projects worth $3.6 billion in 2025, signaling increasing investor confidence and new market entry.

Competition is Intensifying Across Southeast Asia's Colocation Data Center Market
Competition in the Southeast Asia colocation market is increasing as operators expand capacity and strengthen long-term development plans to meet rising demand for wholesale and hyperscale colocation services. Major providers, including Digital Realty, Equinix, Bridge Data Centres, ST Telemedia Global Data Centres, NTT DATA, AirTrunk, Princeton Digital Group, and Vantage Data Centers, are actively expanding their footprint to increase colocation capacity across key markets. Operators are also acquiring large land parcels and existing industrial buildings to support future developments, although securing sites with reliable power supply remains a growing challenge. While Singapore continues to be one of the region's most established colocation hubs, high development costs and limited land availability are encouraging operators to explore neighboring markets with stronger expansion potential.

Discover Insights on 465 Data Center Facilities Across 9 Key Countries in Southeast Asia: https://www.arizton.com/market-reports/southeast-asia-data-center-market-facilities

Southeast Asia's Data Center Market Continues to Expand
• Southeast Asia hosts around 303 existing data centers, with countries like Singapore, Malaysia and Indonesia having a strong presence in the region.
• Malaysia dominates the existing market with a power capacity of more than 1 GW, driven by major players like Vantage Data Centers, DayOne (GDS Services), Bridge Data Centers, and Princeton Digital Group.
• Southeast Asia's upcoming data center capacity is nearly four times the current operational capacity.
• Emerging markets like the Philippines and Vietnam are entering rapid expansion phases, diversifying the overall regional footprint.
• Malaysia leads Southeast Asia's upcoming data center expansion with over 6 GW in the pipeline, followed by Thailand at approximately 3.5 GW, positioning both countries at the forefront of the region's hyperscale growth cycle.

Major Companies in the Southeast Asia Data Center Market
• The Southeast Asia data center market has the presence of key investors such as Bridge Data Centres, Digital Realty, Equinix, AirTrunk, NTT DATA, Princeton Digital Group, DayOne, ST Telemedia Global Data Centres, Vantage Data Centers, and others.
• New Entrants include A-FLOW, Aslan Energy Capital, Beeinfotech PH, BRIGHT RAY, BW Digital, CloudHQ, CtrlS Datacenters, DAMAC Digital, NEXTDC, ZDATA Technologies, STACK Infrastructure and several others.

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What Key Findings Will Our Research Analysis Reveal?
• How big is the Southeast Asia data center market?
• What is the growth rate of the Southeast Asia data center market?
• What is the estimated market size in terms of area in the Southeast Asia data center market by 2030?
• What are the key trends in the Southeast Asia data center market?
• How much MW of power capacity is expected to reach the Southeast Asia data center market by 2030?
• What is the estimated market size in terms of area in the Southeast Asia data center market by 2030?

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Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.

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Source: Arizton Advisory & Intelligence

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