The Southeast Asia data center construction market is projected to expand significantly, with an estimated CAGR of 17.83% between 2025 and 2031. Key trends include a shift towards sustainability, with renewable energy sources like green hydrogen and solar power gaining traction. Liquid cooling and advanced data center technologies are being adopted to support high-density computing and AI workloads. Geographically, Malaysia is set to dominate by 2031, thanks to strong connectivity and infrastructure. Meanwhile, Indonesia and Thailand are seeing substantial investments. Major players such as AirTrunk, Equinix, and Microsoft are driving innovation and growth in the region.

Southeast Asian Data Center Construction Market

Dublin, May 14, 2026 (GLOBE NEWSWIRE) -- The "Southeast Asia Data Center Construction Market - Industry Outlook & Forecast 2026-2031" report has been added to ResearchAndMarkets.com's offering.

The Southeast Asia data center construction market size by investment is expected to grow at a CAGR of 17.83% from 2025 to 2031

In Southeast Asia data center construction market, Malaysia is expected to be the largest market in 2031 in terms of power capacity, with a share of around 47% in 2031. Several key drivers are propelling the growth of data centers in Malaysia. The strategic location of the country offers significant connectivity, allowing for efficient access to critical regional markets. This connectivity is enhanced by a well-developed infrastructure that supports seamless data transmission. Malaysia at present has 24 operating submarine cables, with an additional six of them slated for launch in the coming three to four years.

Indonesia emerges as a key player in the Southeast Asia data center market, showcasing substantial growth potential. The proactive digital transformation initiatives by the government, alongside the increasing implementation of AI technologies and growing submarine connectivity, drive significant investments in the data center infrastructure of the country. As of 2025, the construction cost of data centers in Indonesia ranged from $8 million to $9 million per MW, making it a more affordable option compared to other regional hubs such as Singapore and Malaysia.

In Thailand, the Thai Board of Investment (BOI) is committed to promoting key sectors, which include the development of clean energy solutions. They are at present establishing a Direct PPA, specifically for the data center industry, as well as refining digital regulations and laws to support the advancements in AI and digital technologies.

In the month of May-June of 2025, six new projects were approved by Thailand BOI with a cumulative investment of $3.6 billion (521.2 billion baht). Five among them are the new entrants to the Thailand market that include Galaxy Data Centers, Galaxy Peak Data Centers, ZDATA Technologies (Stratus Technologies), Vistas Technologies, and Digital Edge DC. The one existing investor is Bridge Data Centres.

The data center area addition in the Philippines is on a consistent growth trajectory. In 2025, the country witnessed a data center area addition of 185 thousand sq ft, and is expected to garner 2.26 million sq ft of area addition between 2026 and 2031.

SEA DATA CENTER CONSTRUCTION MARKET VENDOR LANDSCAPE

The Southeast Asia data center construction market continues to attract large-scale investments from major operators. For example, in June 2025, DayOne obtained more than $3.54 billion (RM15 billion) in new debt financing to enhance its operations in Malaysia's data center sector. The investment is aimed at bolstering the infrastructure of the company to meet the growing demands for data processing and storage services in the region.
In Indonesia, Microsoft launched its first data center in May 2025 and is expected to contribute around $2.5 billion to the economy and create 60,000 jobs by 2028. In addition, it is also likely to support digital training for one million people, with 840,000 already participating in AI capability-building.
In June 2025, Equinix completed the acquisition of three data centers in Manila, Philippines, from Total Information Management (TIM), a prominent technology solutions provider, marking the official entry of the company into the Philippine market. The cost of the acquisition was around $180 million.

SOUTHEAST ASIA DATA CENTER CONSTRUCTION MARKET KEY TRENDS

Sustainability Initiatives and Renewable Energy

Data centers are heavy consumers of energy, contributing significantly to emissions. Nevertheless, the impact of these emissions can be reduced by transitioning to sustainable energy sources such as green hydrogen and solar power. Most of the data is currently being stored in data centers worldwide. It is estimated that data centers alone are likely to account for approximately 8% of the total energy consumption by 2030.
Indonesia aims to achieve its net-zero carbon emissions target by 2060; hence, it focuses on producing its electricity from renewable sources significantly. The country is committed to generating over 48% of its electricity through renewables by 2030. Furthermore, the country is making significant efforts to generate around 23% of electricity from renewable sources in 2025. In July 2025, NeutraDC partnered with Medco Power, a renewable energy developer, to deploy solar power at its data center facility in Batam, Indonesia.
Singapore aims to reduce its greenhouse gas emissions to around 60 million tons of CO2 equivalent by 2030, to reach net-zero emissions by 2050. Under the Singapore Green Plan 2030, the key targets include increasing the adoption of renewable energy, enhancing energy efficiency across industries, transforming 80% of buildings into green structures by 2030, and deploying at least 2 GWp of solar energy by 2030. These initiatives reflect the strong commitment of Singapore to sustainability, energy transition, and climate resilience, which are in alignment with the global decarbonization goals.

Adoption of Liquid Cooling and Innovative Data Center Technologies

The rising demand for high-density computing, AI workloads, and edge deployments in Southeast Asia pushes data centers to adopt innovative technologies such as advanced cooling systems and next-gen generators. Hot and humid climates, coupled with increasing energy costs, make efficiency and sustainability quite critical. As uptime expectations grow, operators will invest in resilient infrastructure to meet the performance and environmental goals.
As AI workloads increase and rack power density rises, liquid cooling is likely to become essential for data center operators. For example, AirTrunk has implemented liquid cooling in the initial phase of its JHB1 campus in Malaysia, resulting in notable energy efficiency improvements. Also, in May 2025, Equinix JK1, situated in the Central Business District of Jakarta, integrated sustainability into its design by utilizing advanced technologies such as cooling arrays and liquid cooling systems.
YTL Data Center's development in Johor, Malaysia, supported by partnerships within the AI ecosystem, including the NVIDIA-aligned AI infrastructure deployments, is being built with provisions for liquid cooling at scale. The site is promoted as a sustainable digital hub, powered by renewable energy sources to reduce the total operational emissions.

KEY QUESTIONS ANSWERED

How big is the Southeast Asia data center construction market?
What is the estimated market size in terms of area in the Southeast Asia data center construction market by 2031?
What is the growth rate of the Southeast Asia data center construction market?
What are the key trends in the Southeast Asia data center construction market?
How many MW of power capacity is expected to reach the Southeast Asia data center construction market by 2031?

Key Attributes:

Report Attribute	Details
No. of Pages	284
Forecast Period	2025 - 2031
Estimated Market Value (USD) in 2025	$6.59 Billion
Forecasted Market Value (USD) by 2031	$17.65 Billion
Compound Annual Growth Rate	17.8%
Regions Covered	Asia Pacific

Key Data Center Support Infrastructure Providers

ABB
Aggreko
Airedale
Bosch
Caterpillar
Cummins
Cyber Power Systems
Delta Electronics
Eaton
EKG M & E
Fuji Electric
HITEC Power Protection
Johnson Controls
Legrand
Mitsubishi Electric
Narada
Piller Power Systems
Rehlko
Rittal
Rolls-Royce
Schneider Electric
Siemens
Socomec Group
STULZ
Systemair
TECO Electric & Machinery
Trane
Vertiv
ZTE

Key Data Center Contractors & Subcontractors

Advance Power Engineering
AECOM
AEON SERVICES
Aesler Grup
AO Construction
Apave
Arcadis
Archetype Group
Architects 49
ARKONIN
Arup
Asdi Swasatya
Asima Architects
AtkinsRealis
Aurecon
AVO Technology
AWP Architects
BECA
B-Global Tech
Binastra Corporation
CCIE Engineering
Chaan
Comfac
Critical Holdings Berhad
CSF Group
CTC-Global
Cundall
Cyclect Group
Data Center Design Corporation (DCDC)
DCD Technology
Design Coordinates
DSCO Group
Endec Group
Exyte (M+W Group)
Finishing Touch Design Studio
First Balfour
Fortis Construction
Gammon Construction
Gamuda
GCM Technologies
Gensler
Greatians Consulting
GreenViet
HSS Engineers
IJM Corporation
Infraset
INHERIT TECHNOLOGY ENGINEERING
ISG
Jaya Karya Integrasi
JSLA Architects
Jurutera JRK
Kienta Engineering Construction
Kajima Corporation
LandArc Associates
Leighton Asia
Linesight
LSK Engineering
Mace
Meg Consult
Megawide Construction Corporation
Meinhardt Group
MES Group
Mitrajaya Holdings
MN Holdings
Monocrete
Nakano Corporation
NTT Facilities
OWH Consulting
Parker, van den Bergh
PKT Quantity Surveyors
Plan Architect
PM Group
PMX Malaysia
Powerware Systems
PT Acset Indonusa Tbk
PT AtoZ Teknik
PT Berca Buana Sakti
PT Indokoei International
PT Jaya Obayashi
PT Jaya Teknik Indonesia
PT PP
PT SMI
PT Sumaraja Indah
PT Total Bangun Persada Tbk
PPS Group
PRONET
QTCG
Ramboll
RDC Arkitek
RED Engineering
S5 Engineering
Sato Kogyo
Shaw Architect
SOL E&C
Sunway Construction Group
Syntec Construction
Syska Hennessy Group
Taikisha
Tarnas
Tetra
Thornton Tomasetti
Turner & Townsend
Unique Central
USDC Technology
Vale Architects
VINCI Energies
WT Asia

Key Data Center Investors

AIMS Data Centre
AirTrunk
AIS Business
Alibaba Cloud
AWS
BDx Data Centers
Bitera Data Centers
Biznet Data Center
Bridge Data Centres
China Mobile
CMC Telecom
Converge ICT Solutions
Datacomm Diangraha
DayOne
DCI Indonesia
Digital Edge DC
Digital Hyperspace Indonesia
Digital Realty
DITO Telecommunity
EdgeConneX
Elitery
Empyrion Digital
Epsilon Telecommunications
ePLDT
Equinix
Etix Everywhere
FPT Telecom
Global Switch
Google
Hanoi Telecom (ECODC)
IDC Indonesia
IndoKeppel Data Centres
Internet Thailand
Iron Mountain
K2 Strategic
Keppel Data Centres
Mapletree
MettaDC
Microsoft
Nxera
NTT DATA
OneAsia Network
Open DC
Princeton Digital Group
Pure Data Centres
Racks Central
SM+
ST Engineering
ST Telemedia Global Data Centres
SUPERNAP Thailand
Telehouse
Telekom Malaysia
Telin Singapore
Telkom Indonesia (NeutraDC)
Tencent Cloud
True Internet Data Center (True IDC)
Vantage Data Centers
Viettel IDC
VNPT
VNTT
WHA group
YTL Data Center Holdings

New Entrants

A-FLOW
Aslan Energy Capital
Beeinfotech PH
BRIGHT RAY
BW Digital
CloudHQ
CtrlS Datacenters
CURRENC Group
DAMAC Digital
Digital Halo
Diode Ventures
Doma Infrastructure Group
Epoch Digital
Evolution Data Centres
FutureData
Galaxy Data Centers
Gaw Capital
Global Telecommunications
Haoyang Data
i-Berhad
Infinaxis Data Centre Holdings
Infracrowd Capital
Minoro Energi
NEXTDC
SC Zeus Data Centers
SEAX Global
Siagon Asset Management
STACK Infrastructure
TikTok
YCO Cloud
ZDATA Technologies

The Report Includes the Investment in the Following Areas

Facility Type

Hyperscale Data Centers
Colocation Data Centers
Enterprise Data Centers

Infrastructure

Electrical Infrastructure
Mechanical Infrastructure
General Construction

Electrical Infrastructure

UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure

Mechanical Infrastructure

Cooling Systems
Racks
Other Mechanical Infrastructure

Cooling System

CRAC & CRAH Units
Chillers Units
Cooling Towers, Condensers, and Dry Coolers
Other Cooling Units

Cooling Techniques

Air-based Cooling Technique
Liquid-based Cooling Technique

General Construction

Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM/BMS Solutions

Tier Standards

Tier I & Tier II
Tier III
Tier IV

Geography

Singapore
Indonesia
Malaysia
Philippines
Vietnam
Thailand
Other Southeast Asian Countries

For more information about this report visit https://www.researchandmarkets.com/r/uxw2kf

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Southeast Asian Data Center Construction Market

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Southeast Asia Data Center Construction Industry Outlook Report 2026: Investments are Expected to Grow at a CAGR of 17.83% During 2025-2031, Driven by Attraction from Major Operators