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Southeast Asia's data center market is projected to attract $35.08 billion in cumulative investment by 2031, driven by a 14.3% CAGR

Executive summary: Arizton released a report forecasting Southeast Asia data center investment to grow from $15.72 billion in 2025 to $35.08 billion by 2031, a CAGR of 14.32%. The surge signals robust demand for cloud and AI infrastructure, positioning the region as a key growth hub for global data center operators and related supply chains.

Who is involved: Arizton (research firm), data center investors and operators in Malaysia, Indonesia, Thailand, Singapore and the broader Southeast Asia region.

Likely next: Continued capital inflows, potential government incentives, and expansion of hyperscale facilities through 2030.

Arizton’s latest report shows the region’s data center investment rising from $15.72 billion in 2025 to $35.08 billion by 2031, reflecting a compound annual growth rate of 14.32%. The forecast underscores strong demand for cloud and AI infrastructure across Malaysia, Indonesia, Thailand and Singapore. Analysts note that the expansion will likely spur ancillary investments in power, cooling and construction services.

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