Southeast Asia Data Center Colocation Market - Industry Outlook & Forecast 2026-2031

The Southeast Asia data center colocation market size by investment is expected to grow at a CAGR of 15.50% from 2025 to 2031.

SEA DATA CENTER COLOCATION MARKET OPPORTUNITIES & TRENDS

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 climate conditions, 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.
• The Indonesian market continues to witness a shift from traditional cooling capabilities to modern solutions. Liquid cooling uses fluid to absorb and release heat from high-performance computing workloads, as well as AI and ML workloads. The push of the government toward the "Making Indonesia 4.0" roadmap is focused on adopting advanced cooling techniques in data centers across Indonesia.
• In November 2025, Princeton Digital Group started the construction of JC3, a new data center campus in Jakarta. The data center buildings on the campus are estimated to support both liquid and air-cooling solutions
• In May 2025, Bridge Data Centres signed an MoU with EcoCeres, a biofuels company based in Hong Kong, to explore the use of HVO as a potential alternative to diesel in its backup generation systems. The two companies are estimated to collaborate on developing technical specifications and practical solutions to integrate HVO into their operations, thereby establishing Singapore as a central hub for this initiative.
• The advancements in cooling technologies, backup power solutions, and renewable energy sources are poised to significantly enhance the expansion of data centers throughout the region. These innovations not only facilitate the growth of these essential facilities but also align with the sustainability objectives set by the individual countries.

Renewable Energy and Sustainability Initiatives by Data Center Operators

• With the rapid growth in AI and cloud workloads, energy demand is increasing significantly. As a result, sustainability has become essential for managing carbon emissions, operating costs, and ensuring long-term grid stability. Data centers must prioritize sustainability, especially as local governments and residents are increasingly opposing projects that consume excessive energy, strain water resources, and contribute to higher emissions or noise levels.
• Indonesia aims to achieve its net-zero carbon emissions target by 2060; thus, 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, along with reaching 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.
• The Vietnamese government has set a goal to reach net-zero carbon emissions by 2050; it is aiming to increase the share of renewable energy in its national energy mix to 39.2% by 2030. Furthermore, Vietnam plans to set up two centers for renewable energy industries and services by 2030, focusing on electricity production, transmission, consumption, and the manufacturing of renewable energy equipment. The country aims to build a renewable energy ecosystem in the Northern region, the South-Central Coast, and the Southern region when the conditions are favorable.
• The Philippine government continues to take several initiatives to increase foreign investment in the renewable energy sector. For example, the Department of Energy (DOE) has introduced various financial incentives, including income tax holidays, duty-free imports, and a 0% VAT. In addition, non-financial measures such as Renewable Energy (RE) Portfolio Standards and the Green Energy Auction Program are in place; these initiatives aim to support and enhance the development of renewable energy in the country.
• AI data centers are changing sustainability standards in several ways, including raising acceptable power density limits, expanding metrics beyond Power Usage Effectiveness (PUE), driving the adoption of liquid cooling, tightening expectations for water use, requiring sourcing of carbon-free energy, promoting waste heat reuse, demanding grid-friendly operations, and emphasizing the full lifecycle impact.

SEA DATA CENTER COLOCATION MARKET SEGMENTATION INSIGHTS

• The electrical infrastructure is witnessing several innovations in UPS systems, generators, transfer switches & switchgears and other electrical equipment. Most data centers adopt N+1 diesel generators, providing backup fuel for up to 24 hours or more. For instance, the JK1 facility, part of the Singapore data center of Equinix, has four 2,000 kVA diesel generators with an N+1 redundancy standby power configuration.
• Additionally, several innovative UPS batteries such as Nickel-Zinc (NiZn) and Sodium-Ion batteries are gaining traction in the market due to their high-power density, safety, sustainability, and other factors.
• AI workloads are changing cooling standards in Southeast data centers, as traditional air cooling is insufficient to manage the heat output from GPU-dense clusters. The market is observing an increasing number of partnerships among data center operators, cooling technology vendors, chip manufacturers, and energy innovators; for instance, Digital Realty installed liquid-cooled servers in its SIN11 data center in Singapore. This reduces power consumption by up to 29%.

SEA DATA CENTER COLOCATION MARKET GEOGRAPHICAL ANALYSIS

• The data center colocation market in the Southeast Asia region is registering fast growth worldwide, fueled by rising cloud adoption, the expansion of edge computing, as well as the increasing use of technologies such as AI, big data, and the IoT.
• As of December 2025, Singapore hosts 45 operational data center facilities, spanning a total white floor space of 5,101.4 thousand square feet and six upcoming facilities, covering around 652.5 thousand square feet. Singapore is one of the most expensive markets in the world for developing data center facilities. In addition, land availability for data center development is very limited. Operators continue to purchase industrial plots to convert them into data centers; however, such activities remain relatively low in the market
• Malaysia continues to emerge as a prime destination for data center investments due to its location between major Southeast Asian markets and robust digital infrastructure. Furthermore, the comparative affordability of land and energy costs, especially when contrasted with neighbouring countries such as Singapore, continues to attract global technology companies to establish and grow their operations in Malaysia.
• In Indonesia, Batam is gaining momentum due to its reliable power grids and constant power supply. The island has many power plants, such as coal-fired, natural gas, and renewable energy plants, making it the best choice to set up facilities over other cities in Indonesia. DayOne is constructing a new data center campus in Batam, which will have a combined IT load capacity of around 72 MW.
• Thailand emerges as a key player in the Southeast Asia data center market, showcasing substantial growth potential. The upcoming data center projects in Thailand aim to address both local and wider ASEAN regional needs for data storage and cloud services. Once developed, these projects are estimated to enhance the capabilities of the country in cloud computing and AI, while also creating new employment opportunities.
• The Philippines is becoming an attractive alternative to more expensive regional markets, with a strategic location in Southeast Asia, expanding subsea connectivity, as well as government incentives further encouraging both local and foreign investors to enter the market. Its youthful workforce, expanding energy infrastructure, and strategic position within the APAC network corridor further strengthen its appeal.
• The Vietnamese government aims to achieve net-zero carbon emissions by 2050. It is planning to increase the share of renewable energy in its national energy mix to 39.2% by 2030. The Vietnamese government is committed to promoting key sectors; this includes the development of clean energy solutions.

SEA DATA CENTER COLOCATION MARKET VENDOR LANDSCAPE

• The Southeast Asia data center colocation market has the presence of key investors such as AirTrunk, Bridge Data Centres, Digital Realty, Equinix, NTT DATA, Princeton Digital Group, DayOne, ST Telemedia Global Data Centres, Vantage Data Centers, and others.
• New Entrants include A-FLOW, Aslan Energy Capital, Beeinfotech PH, BRIGHT RAY, BW Digital, CloudHQ, CtrlS Datacenters, DAMAC Digital, NEXTDC, ZDATA Technologies, STACK Infrastructure and several others.
• In the months 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, which 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 Centers. In November 2025, the Thailand BOI approved four additional data center projects with a total investment of $3.1 billion from Telehouse, ZDATA Technologies, NextGen Data Center and Cloud Services Co., Ltd., a subsidiary of Dubai-based DAMAC Digital and Zenith Data Center and Cloud Services.
• In July 2025, DAMAC Digital acquired 50,000 square meters of land in West Java, Indonesia, with an investment of $2.3 billion for its Jakarta Data Center 2. In May 2025, Racks Central announced its entry into the Indonesian data center market with the acquisition of 5.1 acres of land parcel in Nongsa Digital Park, Batam, for the development of its first data center in the country.

Prominent Colocation Operators

• AirTrunk
• Bridge Data Centres
• DayOne
• DCI Indonesia
• Digital Edge DC
• Digital Realty
• ePLTD
• Equinix
• Nxera
• NTT DATA
• Princeton Digital Group
• ST Telemedia Global Data Centres
• Telkom Indonesia (NeutraDC)
• True Internet Data Center (True IDC)
• Viettel IDC

Other Prominent Colocation Operators

• AIMS Data Centre
• AIS Business
• BDx Data Centers
• Bitera Data Centers
• Biznet Data Center
• China Mobile
• Converge ICT Solutions
• CMC Telecom
• Datacomm Diangraha
• Digital Hyperspace Indonesia
• DITO Telecommunity
• EdgeConneX
• Elitery
• Empyrion Digital
• Epsilon Telecommunications
• Etix Everywhere
• FPT Telecom
• Global Switch
• Hanoi Telecom
• IDC Indonesia
• IndoKeppel Data Centres
• Internet Thailand
• Iron Mountain
• K2 Strategic
• Keppel Data Centres
• Mapletree
• MettaDC
• OneAsia Network
• Open DC
• Pure Data Centres
• Racks Central
• SM+
• ST Engineering
• SUPERNAP Thailand
• Telin Singapore
• Telehouse
• Vantage Data Centers
• VNPT
• VNTT
• WHA Group
• YTL Data Center Holdings

New Entrants

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

Segmentation by Colocation Type

• Retail Colocation
• Wholesale Colocation

Segmentation by Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based Cooling
• Liquid-based Cooling

Segmentation by General Construction

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

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

Segmentation by Geography

• Southeast Asia
  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Philippines
  • Vietnam
  • Other Southeast Asian Countries

KEY QUESTIONS ANSWERED:

1. How big is the Southeast Asia data center colocation market?

2. What is the growth rate of the Southeast Asia data center colocation market?

3. What are the key trends in the Southeast Asia data center colocation market?

4. What is the estimated market size in terms of area in the Southeast Asia data center colocation market by 2031?

5. How much MW of power capacity is expected to reach the Southeast Asia data center colocation market by 2031?