BMI

Vietnam is emerging as a credible secondary data center hub in Southeast Asia over the next five years, benefiting from rapid cloud adoption and a spillover of investment from more constrained markets such as Singapore and Malaysia, BMI Country Risk & Industry Research said on Monday.

As electric vehicle (EV) adoption accelerates across South East Asia, ASEAN is evolving from an emerging demand center into an increasingly important manufacturing and supply-chain hub, BMI Country Risk and Industry Research said Thursday.

Thailand’s data center sector is set to sustain strong medium-term growth, driven by a rapidly expanding pipeline of hyperscale investments and supportive government policies, even as execution risks around power supply, grid readiness and costs begin to emerge, BMI Country Risk & Industry Research said Monday.

BMI Country Risk and Industry Research said it has made further upward growth forecast revisions in East Asia amid artificial intelligence (AI) capital expenditure (capex) boom.

Asia Pacific (APAC) data center growth will remain strong through 2028, but future capacity expansion is expected to become increasingly concentrated in markets and operators capable of supporting artificial intelligence (AI)-grade workloads, large-scale financing and execution discipline, BMI Country Risk and Industry Research said Monday.

Accelerating distributed generation across several Asian markets has driven a downward revision to its on-grid electricity demand forecasts, as more supportive rooftop solar policy and persistently high retail tariffs erode grid-based consumption, BMI Country Risk and Industry Research said in its recent report.

Indonesia’s data center sector is entering a structurally differentiated growth phase, with Batam increasingly positioned as a regulatory compliance and Singapore-linked overflow hub, while Jakarta continues to anchor core hyperscale and enterprise demand, according to BMI Country Risk and Industry Research.

The Strait of Hormuz disruption has prompted Asia-Pacific power systems to prioritize energy security, boosting coal and nuclear generation in the short term while accelerating structural investment in renewables and storage, BMI Country Risk and Industry Research said last Thursday.

While momentum builds for ASEAN Power Grid (APG), the regional initiative designed to interconnect the electricity grids of Southeast Asian nations to enhance energy security, sustainability, and reliability, BMI Country Risk And Industry Research sees financing, geopolitical and supply chain remain bottlenecks.

Malaysia's artificial intelligence (AI)-focused approval strategy will accelerate market consolidation in Johor, which is converging into an oligopolistic structure dominated by 3-5 well-capitalized platforms backed by large buyout funds, BMI Country Risk And Industry Research said last Friday.