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China’s AI firms are going regional for compute power – and South-east Asia is cashing in

US chip curbs are pushing these innovators to the region, driving a wave of data centre deals, long-term leases and JVs

Jamille  Tran
Published Fri, May 9, 2025 · 12:00 PM
    • Demand from China began surging in the third quarter of last year, with investor interest in Johor, Malaysia, and Batam, Indonesia, fuelled by favourable regulations, lower costs and generous subsidies, says Dedi Iskandar, Asia-Pacific regional director at datacenterHawk.
    • Demand from China began surging in the third quarter of last year, with investor interest in Johor, Malaysia, and Batam, Indonesia, fuelled by favourable regulations, lower costs and generous subsidies, says Dedi Iskandar, Asia-Pacific regional director at datacenterHawk. PHOTO: BT FILE

    [HO CHI MINH CITY] Chinese firms are ramping up artificial intelligence (AI) infrastructure leases across South-east Asia in a long-term push to globalise compute workloads as tighter US controls on Nvidia’s advanced chips drive demand to digital hubs such as Singapore, Malaysia, Indonesia – and increasingly Vietnam and Thailand.

    Industry sources note that Chinese hyperscalers such as Alibaba Cloud, Tencent and Huawei have also been steadily deepening their presence in South-east Asia through joint ventures (JVs) as they seek to sidestep geopolitical friction and secure scale.

    Mickael Driol, chief executive at Mekong Partners, a Shanghai-based advisory firm specialising in corporate services, said: “We’re already seeing targeted capacity reservations by Chinese clients that stretch five to seven years into the future, particularly for AI-focused data centres in Malaysia and Indonesia.” 

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