Southeast Asia’s AI boom tests data center sustainability

Southeast Asia is experiencing a surge in artificial intelligence, prompting the rapid growth of digital infrastructure across the region. However, this expansion raises concerns about meeting the increased demand without escalating energy consumption and environmental impacts. Evidence of these issues surfaced during Tech Week Singapore, a tech event held from September 29th to 30th, where data center and cloud infrastructure suppliers attracted significant attention.

As AI systems become increasingly sophisticated, operators are under mounting pressure to deliver greater computing power while simultaneously reducing electricity and water usage in the vast, standalone facilities being constructed worldwide. The evolution of data centers from government, banking, and large institution facilities during the 1950s and 1960s marks a stark contrast to today's massive structures.

Data center capacity varies considerably across Southeast Asia. According to Srini Rao, head of ecosystems at Novagate Cloud, Singapore currently has around 1,068 megawatts (MW) of operational capacity, with an additional 232 MW under development and 200 MW allocated through its second Data Centre Call for Application. Indonesia boasts 468 MW of operational capacity, complemented by nearly 2,000 MW in development.

Malaysia, however, leads the three markets with 1,318 MW of operational capacity and 5,438 MW in its development pipeline.