UOB: AI Infrastructure Drives Southeast Asia's Economic Growth

Artificial intelligence (AI) is now an economic growth engine in Southeast Asia, according to United Overseas Bank (UOB) executives at the ASEAN Conference 2026. The focus is shifting from adopting AI tools to building the necessary physical infrastructure. Hyperscalers, which operate large-scale data centers, are rapidly expanding capacity in the region, with Malaysia leading recent growth, followed by Thailand, Indonesia, and Vietnam. Singapore faces land and energy constraints affecting its status as a premium hub. Southeast Asia currently hosts numerous AI-focused facilities with several gigawatts of operational and planned capacity. Wood Mackenzie projects data-center power demand could rise from 2.6 gigawatts in 2025 to 10.7 gigawatts by 2035. The e-Conomy SEA 2025 study estimates over 4,600 megawatts of new capacity, indicating 180% growth, outpacing the rest of Asia-Pacific. Building this infrastructure requires reliable power, advanced cooling, land, and robust grid connections. UOB's Edmund Leong estimates about 150 billion dollars could be invested in regional energy infrastructure over the next five years, focusing on renewables and energy-transition projects. Financial institutions play a crucial role in mobilizing capital and connecting developers with regulators and utilities. Not all projects are bankable, and success relies on technical expertise and long-term vision. Market dynamics may help lower costs and improve efficiency over time. Southeast Asia's digital economy is projected to exceed 300 billion dollars, with AI potentially adding up to 1 trillion dollars to regional GDP by 2030.