Data Center Market Potential in ASEAN

The latest research data shows that the data center market for server delivery in Asia Pacific will be the world’s largest in value surpassing the North American market size, reaching US$ 28 billion by 2024. In particular, the main growth driver comes from the ASEAN region. ASEAN is the fifth largest economy in the world in terms of GDP size with about 680 million people, member countries have always promoted the development of the digital economy and e-commerce, especially after the covid-19 pandemic. ASEAN is becoming the focus of attracting a large number of investment flows to build and develop data centers in Asia.

The data center development market in ASEAN is growing at about 14% in the period from 2019 to 2023 and this is considered a land with a lot of room to exploit.

The Southeast Asia Data Market Report 2022 indicates that there are currently about 200 server-providing data centers operating in ASEAN, with about 50 others under construction and operational by 2025. The focus of the world’s major cloud service providers such as Amazon and Microsoft on the ASEAN market also makes the demand for renting data centers exceed the supply in the market. In addition to leasing, the strategy of building data centers in the locality is also causing capital flows into this market. It is forecast to increase to US$3 billion per year in ASEAN.


Dean of School of Electrical and Data Engineering, University of Technology Sydney Australia

If we consider data as the main fuel in the digital economy, then data centers are the storage of this important fuel so every country needs to own as many data centers as possible. To be at the forefront of this industry, ASEAN needs to invest in three elements. The first is that the data storage infrastructure means that the scale must be large enough. The second is to invest in data transmission, which is that the system of high-speed fiber optic cables to international must be stable. Finally, data analysis requires a human resource to respond when an emergency occurs, only when these 3 factors are met, will ASEAN’s position in data centers take off.

Singapore and Malaysia are major data centers in the top 10 in the Asia Pacific region. However, new players are emerging as bases for building new data centers such as Indonesia, Vietnam, Thailand. Behind but these countries are having advantages such as lower rental space prices,  Tax support.


General Director of Nokia Vietnam

Vietnam has an advantageous position as a connection point between the Pacific and Indian Oceans, which has advantages over the data center located in Penang, Malaysia in terms of weather and soil conditions. This will help develop reliable data centers in Vietnam.

In addition, the trend of greening is also being implemented by many ASEAN countries when building data centers to maximize energy efficiency and minimize environmental impact.  Thailand is leading the most advanced greening data centers in the region for cloud services and server leasing.

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