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Southeast Asia questions the cost and speed of its AI data center push

Analysts say the rapid buildout is straining power grids, land supply, and regulatory systems even as governments pursue jobs and AI infrastructure.

Reported · Written up by our desk · Asia

Southeast Asian governments are reassessing the rapid data center buildout they have spent years courting to support cloud and AI, with analysts warning the push is now creating strains on local systems, according to SCMP Economy.

The outlet reports that while data centers promise jobs, digital infrastructure, and a stronger foothold in the AI economy, the pace of construction is stressing power grids, land availability, and regulatory capacity.

Policy researcher Mark Manantan, a research fellow at La Trobe University’s Centre for Global Security, said governments are increasingly asking, “at what cost and at what speed,” as they weigh benefits against the challenges of scaling infrastructure quickly.

Political economist Alvin Camba, a non-resident fellow at the Atlantic Council’s Indo-Pacific Security Initiative, said governments originally moved aggressively to attract investment to avoid falling behind, but the competition now forces a closer look at tradeoffs, SCMP Economy reported.

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