The data center colocation market in Southeast Asia is poised for remarkable growth, with projections indicating a compound annual growth rate (CAGR) of 18.88% from 2024 to 2030. The market is anticipated to expand from a valuation of $3.88 billion in 2024 to approximately $10.96 billion by 2030.
Singapore continues to lead as the primary hub for data center development in the region, while Malaysia, Indonesia, Thailand, and the Philippines are emerging as significant locations for investment. Notably, Malaysia is at the forefront in terms of installed power capacity, contributing notably to the region”s overall growth, alongside Indonesia.
The emphasis on sustainability is a key trend within the market, with companies increasingly prioritizing renewable energy sources to comply with regulatory requirements and attract environmentally conscious investments. The adoption of artificial intelligence (AI) is also transforming data center operations, improving energy management and predictive maintenance capabilities.
Market analysts anticipate robust investments in data centers across Malaysia, Thailand, and other Southeast Asian countries, which will facilitate substantial increases in power capacity by 2030. The region currently houses approximately 270 operational colocation data centers, with expectations for this number to grow as both established and new companies plan to invest in the area.
Particularly in Indonesia, the colocation sector is expected to thrive, driven by the government”s digitalization initiatives, the establishment of robust infrastructure, and a stable economic environment. Currently, Indonesia”s colocation vacancy rate stands at around 12%, which is comparatively higher than that of several South Asian countries, including Singapore.
The report titled “Southeast Asia Data Center Colocation Market – Supply & Demand Analysis 2025-2030,” now available through ResearchAndMarkets.com, details various aspects of the market, including utilized white floor area, IT power capacity, and occupancy rates in colocation facilities. It also provides insights into trends, potential growth opportunities, and challenges facing the industry.
Key areas of focus include an analysis of existing and upcoming colocation facilities, competitive landscapes, and the overall demand for colocation services across different industries. The study emphasizes the critical role of cloud connectivity and sustainability in shaping the future of data centers in Southeast Asia.
For further information about this comprehensive market analysis, visit ResearchAndMarkets.com.
