Luke Hahn
Following the 47th Association of Southeast Asian Nations’ (ASEAN) Summit in Kuala Lumpur, Southeast Asia–along with several international nations–reaffirmed its commitment towards a sustainable future. In a declaration made on Oct 28, 2025, ASEAN announced its aims to improve its efforts to “reduce, mitigate and address the degradation of the natural environment, and continue to share good practices in fulfilling the right to a safe, clean, healthy and sustainable environment.” Malaysian Prime Minister Anwar Ibrahim’s goals towards a more sustainable future resonated with world leaders, alongside ASEAN’s efforts towards developing its technological advancements throughout the region, including artificial intelligence (AI) and data center storage. However, ASEAN’s burgeoning digital infrastructure industry runs the risk of hindering its environmental aims in the wake of international demand. In advancing the growth of domestic data centers, ASEAN member-states must not sacrifice their environmental goals at the expense of rapid industrial innovation.
The global AI industry in Southeast Asia has faced unprecedented growth this past year alone, with AI-related investment expected to surpass US$110 billion by 2028. In Malaysia alone, investment into data centers is projected to rise 185% by the end of 2025, with over 30,000 jobs being created by 2030. As a result of increased international demand from major powers, a growing population, and a rising role as a manufacturing hub, Southeast Asia is primed to become the next major outsourcing hub for scalable, high-performance data infrastructure for major investors. For member-states, this means short-term increased job growth and development towards financial technology (fintech) industries, while supporting both Chinese and American demands for data storage and AI energy reserves.
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