Opinion | As AI takes the world by storm, Asia stands to benefit

Driven by industries ranging from finance to healthcare and manufacturing, worldwide demand for artificial intelligence infrastructure is rapidly increasing. Global AI spending is projected to reach US$632 billion by 2028. This rise is particularly evident in Southeast Asia, where governments and the private sector are embracing AI and cybersecurity to secure digital assets, improve automation and boost economic resilience.

Cybersecurity is becoming a critical focus in the region. Global cybercrime costs are estimated to be as high as US$10.5 trillion next year, creating a pressing need for enhanced security frameworks.

Southeast Asia is becoming a key player in the global digital infrastructure landscape, driven by a booming demand for AI and cybersecurity. Major technological firms are increasingly choosing to host their data centres in the region, fuelling the growth of digital services, cloud computing and AI capabilities.

Southeast Asia has quickly emerged as an ideal destination for data centres, thanks to the lower operational costs, access to renewable energy and political neutrality. Singapore, Malaysia, Thailand, Indonesia and Vietnam are leading the way with digital infrastructure enhancements. Demand for data centres is expected to grow by 20 per cent annually in Southeast Asia over the next few years, largely driven by the need to support AI innovations and cloud computing services.

Singapore remains the top destination for data centres, offering superior infrastructure and a stable regulatory regime. Despite a moratorium between 2019 and 2022 due to environmental concerns, Singapore now houses around 1.4 gigawatts (GW) of data centre capacity and expects to add 300 megawatts in the coming years. Recent projects include those by Microsoft, Equinix and ByteDance.