What happened
Microsoft expands its data centre footprint across Southeast Asia, including a US$1.7 billion investment in Indonesia, to meet AI demand. This regional expansion, also involving Amazon, Google, Alibaba, and Tencent, drives a projected tripling of Southeast Asia's data centre capacity by 2030, fuelled by a tenfold increase in AI use. Microsoft's Jakarta facilities use closed-loop water cooling systems and adapt designs for higher-performance chips, with the company committing to raise Indonesia's renewable energy capacity by 200MW over a decade.
Why it matters
Data centre expansion will increase demand on Southeast Asia's power grids and water resources. Infrastructure architects and procurement teams must account for increased electricity demand; Indonesia's data centre power consumption could quadruple by 2030, with nearly 70% of its electricity from coal. Water supplies face increased demand, particularly in regions like Jakarta, which experiences groundwater extraction issues. This follows Singapore's 2019-2022 moratorium on new data centres due to energy and water concerns, shifting development to neighbouring countries.
Subscribe for Weekly Updates
Stay ahead with our weekly AI and tech briefings, delivered every Tuesday.
