The accelerating data centre boom in Southeast Asia: Are you Prepared?

The digital landscape across South and Southeast Asia is rapidly evolving, driven in large part by the explosion of artificial intelligence (AI) and the rise of domestic AI initiatives. As these initiatives gain momentum, they carry significant implications for national well-being, economic competitiveness, and the creation of high-skilled jobs.

"The wellbeing of entire nations is at stake since successful AI initiatives will define future competitiveness, attract investment, foster innovation, and create high-skilled jobs," says Matias Peluffo from CommScope.

According to 451 Research, the data centre capacity in countries like Malaysia, Thailand, Indonesia, Vietnam, and India is expected to grow at a compound annual growth rate (CAGR) of 10-28% over the next five years. However, these projections could be conservative, with more players entering the market and driving even faster expansion.

The current surge is leading to unprecedented growth in data processing capabilities, presenting both exciting opportunities and notable challenges for operators in the region.

Generative AI and Sovereign AI: The Push for Localized Processing

Generative AI has the potential to transform industries, pushing the region's data centres to new heights. To keep pace with the demands of AI, these centres will need to be equipped with the immense processing power required to support AI-driven transformation.

Globally, governments are advancing sovereign AI initiatives to gain a competitive edge across various sectors. These initiatives aim to deploy cutting-edge AI technologies using local infrastructure, workforce, and networks.

"The wellbeing of entire nations is at stake, since successful AI initiatives will define future competitiveness, attract investment, foster innovation, and create high-skilled jobs."

For data centres in Southeast Asia, this means focusing on building infrastructure that supports the development of domestic AI ecosystems while addressing regional and local processing needs.

Cooling Challenges: Keeping Up with the Heat

The rapid increase in data processing power to support AI presents another challenge: heat management. As power densities rise, traditional air-cooling methods are becoming inadequate, particularly when exceeding 10-15 kW per rack.

Generative AI can drive power consumption up by over 10 times. As future network generations will require even more power, data centres must shift to advanced cooling technologies like liquid-cooling solutions, which are crucial for managing the demands of high-performance GPUs while maximizing energy efficiency.

High Bandwidth, High Density, High Performance: Future-Proofing Your Infrastructure

As data volumes continue to soar, so does the demand for higher transmission speeds. The adoption of 400Gbps, 800Gbps, and even 1.6Tbps optical speeds is revolutionizing data centre connectivity.

Historically, Direct Attach Cables (DAC) and Active Optical Cables (AOC) were used for back-end networks. However, upgrading these cables can result in significant downtime and produce large amounts of non-recyclable waste.

Looking forward, data centres must implement a blend of multimode and single-mode fibre-structured cabling systems. This future-proofing strategy will help operators avoid "rip-and-replace" scenarios, which can undermine both operational efficiency and sustainability.

The shift towards high-density fibre optic infrastructures is leading to innovations like 16-fibre MPO assemblies and Very Small Form Factor connectors, which enhance capacity and efficiency. Angled MPO8 and MPO16 connectors are also becoming essential to support the performance demands of lossless Infiniband and next-generation Ethernet networks.

Building for Success: Leveraging the Ecosystem Advantage

Establishing a future-ready data centre requires more than just advanced technology. Success depends on a well-coordinated ecosystem of vendors, suppliers, and integrators. Working with the right partners ensures seamless installation, on-time delivery, and optimized performance.

Accelerating Deployments: Driving Digital Transformation

The ongoing data centre boom across South and Southeast Asia is a testament to the region's rapidly growing digital economy. To fully leverage the potential of AI and drive digital transformation, data centres will need to deploy cutting-edge solutions for heat dissipation, high-speed connectivity, and high-density infrastructure. This will be achieved through collaboration with a strong ecosystem of partners.