Kuala Lumpur and Jakarta Emerge as Key Data Center Hubs in Southeast Asia

What's Happening?

Kuala Lumpur and Jakarta are rapidly becoming significant data center markets in Southeast Asia, driven by hyperscale cloud expansion and increasing demand for AI infrastructure. According to a report by Structure Research, Kuala Lumpur's data center market is projected to grow from $300 million in 2025 to $1.1 billion by 2030, with a compound annual growth rate of 31%. Jakarta's market is expected to rise from $507 million in 2025 to $856 million by 2030, expanding at a CAGR of 11%. The growth is fueled by renewed investment from Chinese and U.S. hyperscalers and AI-native platforms, positioning both cities as strategic hubs for regional infrastructure development.

Why It's Important?

The emergence of Kuala Lumpur and Jakarta as key data center hubs highlights Southeast Asia's transformative phase in infrastructure buildout. This development is crucial for supporting the region's growing digital economy and accommodating the increasing demand for cloud and AI services. The strategic positioning of these cities enables new deployment and interconnection patterns, offering regional redundancy and diverse workloads. The expansion of hyperscale and AI infrastructure platforms is expected to drive economic growth and attract further investments, reinforcing the region's role in the global digital landscape.

What's Next?

As Kuala Lumpur and Jakarta continue to expand their data center capacities, stakeholders can anticipate increased investment from global operators and enterprises seeking regional diversification. The growth of hyperscale and AI infrastructure is likely to spur further technological advancements and collaborations, enhancing the region's digital capabilities. The ongoing development may also lead to new regulatory frameworks and policies to support the burgeoning data center industry.