Curated News
By: NewsRamp Editorial Staff
August 27, 2025
Southeast Asia Data Center Markets Boom: KL & Jakarta Lead $2B Growth Surge
TLDR
- Structure Research's reports reveal Kuala Lumpur's data center market will grow 31% CAGR to $1.1B by 2030, offering investors first-mover advantage in Southeast Asia's emerging AI hub.
- The reports analyze market size, hyperscale leasing, self-build capacity, and interconnection dynamics using detailed data projections through 2030 for strategic planning.
- These infrastructure developments support regional digital inclusion, enabling better connectivity and technological access across Southeast Asia for future generations.
- Kuala Lumpur's data center market is projected to triple in value by 2030, driven by AI and cloud expansion near Singapore.
Impact - Why it Matters
This research matters because Southeast Asia's rapid digital infrastructure expansion directly impacts global technology deployment, business operations, and economic development. The massive growth in data center capacity—projected to reach billions in market value—signals increased regional connectivity, improved cloud services accessibility, and enhanced AI capabilities for businesses and consumers. For investors and technology companies, these markets represent critical expansion opportunities, while for end-users, they promise faster digital services, better connectivity, and more reliable cloud infrastructure across the region. The strategic positioning of these hubs also supports regional redundancy and workload diversification, making digital services more resilient and accessible throughout Southeast Asia.
Summary
Structure Research, a leading independent research firm specializing in cloud and data center infrastructure, has released two comprehensive reports analyzing Southeast Asia's fastest-growing data center markets. The Kuala Lumpur DCAI Report 2025: Data Centre Colocation, Hyperscale Cloud, AI & Interconnection and Jakarta DCI Report 2025: Data Centre Colocation, Hyperscale Cloud & Interconnection provide in-depth insights into these strategic regional hubs. Kuala Lumpur's market is projected to grow from $300 million in 2025 to $1.1 billion by 2030 with a remarkable 31% CAGR, driven by hyperscale cloud expansion and AI infrastructure development, while Jakarta's market is expected to reach $856 million by 2030 with an 11% CAGR, supported by renewed Chinese cloud investments and AI-native providers entering the region.
According to Philbert Shih, Managing Director of Structure Research, both cities are becoming central to Southeast Asia's transformative infrastructure buildout, with hyperscale providers including Alibaba Cloud, AWS, Microsoft, and Google expanding their presence through various strategies. Kuala Lumpur is emerging as a strategic AI and cloud hub leveraging its proximity to Singapore, while Jakarta is experiencing steady growth with over 65MW of hyperscale colocation inventory coming online in 2025 and capacity projected to double by 2030. Both reports provide detailed data on market size, hyperscale leasing, self-build capacity, and interconnection dynamics, offering valuable insights for investors and operators guiding expansion strategies in the region.
The reports also highlight renewed interest in interconnection from global operators and enterprises seeking regional diversification, with Structure Research offering executive summaries and full reports for purchase. Additionally, the firm previewed an upcoming Bangkok 2025 Report to be released in Q4, noting that Bangkok's market was valued at $165 million in 2024 and is expected to reach $540 million by 2029, driven by hyperscale cloud expansion and early AI-driven demand, positioning it as one of Southeast Asia's most promising emerging data center hubs.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Southeast Asia Data Center Markets Boom: KL & Jakarta Lead $2B Growth Surge
