Shifts in Global Data Center Investment: ASEAN Gains Ground Amid Middle East Tensions
The escalating conflict in the Middle East is prompting a shift in global data center investments towards Southeast Asia, particularly Indonesia. This transition reflects not only geopolitical factors but also the region's growing digital economy and favorable government policies.
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Investment in data centers in the Middle East is projected to reach approximately USD 33.79 billion between 2025 and 2030, with nearly 195% growth from 2024. However, hyperscalers like Microsoft and Amazon are now favoring the more geopolitically stable ASEAN region for expansion.
Indonesia's data center market is expected to grow from USD 3.49 billion in 2025 to USD 7.96 billion by 2031, supported by a large domestic market and favorable conditions for data center development. Risks include energy bottlenecks and regulatory challenges, which could impact investment levels. The demand for data centers remains strong due to local needs, and geopolitical dynamics continue to play a role in shaping investment decisions across the region.
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