{
  "id": 12108150,
  "title": "Southeast Asia starts to rethink its AI data centre boom: ‘at what cost?’",
  "url": "https://urgent.news/2026/10/05/southeast-asia-starts-to-rethink-its-ai-data-centre-boom-at-what-cost",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-05T08:11:25.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/week-asia/economics/article/3369788/southeast-asia-starts-rethink-its-ai-data-centre-boom-what-cost"
  },
  "original_language": "en",
  "account": "Southeast Asian governments have learned that the rapid growth of data centres they once welcomed could have significant downsides. Analysts warn that the boom promises jobs, digital infrastructure, and a foothold in the AI economy, but it is straining power grids, land, and regulatory systems. \"There is this enthusiasm to attract investments, but now it raises the question: at what cost and at what speed?\" said policy researcher Mark Manantan from La Trobe University.\n\nInitially, governments aggressively pursued data centre investments to secure large funds, cloud and AI infrastructure, and maintain their competitive edge. However, they underestimated the downstream costs and found that not having enough capacity looked worse than having too much. BDx, a Singapore-based data centre company, halted construction of a 640-megawatt AI data centre campus in Indonesia due to missing environmental permits. Thailand, too, paused 166 data centre projects, including 49 under construction and 117 awaiting approval, while developing nationwide standards for resource use, locations, safety, and economic benefits.\n\nThe issue is not that governments understood the upside of data centres less; they simply did not anticipate the costs. \"Investors do not necessarily need the most permissive regulatory environment,\" said Alvin Camba, a political economist at the Atlantic Council, \"as long as they know they can secure power, water, permits, and connectivity and continue operating predictably.\"\n\nCountries with reliable infrastructure and predictable rules may be more competitive than those with loose rules. Singapore, for example, has managed its regulatory environment well, while Johor is following suit. Public backlash is also emerging, with protests against data centre projects in Malaysia and the Philippines leading to their withdrawal. While public opposition may not be the primary driver of government decisions, addressing criticism is crucial to mitigating the political costs of these projects.\n\nCamba argues that the pushback reflects a broader question about who ultimately bears the costs of AI data centre buildouts. These investments consume scarce resources, and once enough projects arrive, those resources stop being abundant. As a result, Southeast Asian governments are rethinking their approach to data centre investments, seeking to balance the benefits with the potential costs.",
  "summary": "Southeast Asian governments are learning some hard truths about the data centre boom they spent years working to attract, analysts say – it promises jobs, digital infrastructure and a foothold in the AI economy, but the rapid buildout is also straining power grids, land and regulatory systems. “There is this enthusiasm to attract investments, but now it raises the question: at what cost and at…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "e27",
        "title": "Why Southeast Asia’s AI coding race is moving from models to infrastructure",
        "url": "https://urgent.news/2026/10/05/why-southeast-asias-ai-coding-race-is-moving-from-models-to",
        "published": "2026-10-05T03:58:37.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}