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
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[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.”
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
Near sell-out launches in March boost developer sales to 1,300 units after four slow months
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025
