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The datacentre arms race hits pause in south-east Asia

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The Guardian - Australia
By Arundhati Hazra
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The datacentre arms race hits pause in south-east Asia
Photo / Coverage: The Guardian - AustraliaCredit: Arundhati Hazra
EXECUTIVE SUMMARY

Power and water constraints are pressuring what seemed like a juggernaut of growth for the region just months ago In early 2026, Thailand’s datacentre industry was on a roll. The country’s board of investment had recently announced approval of datacentre projects from Tiktok, a UAE-based Skyline datacentre and Singapore’s Bridge datacentres, totalling a planned investment of $27bn. As the year has passed, however, what once seemed like a new industrial juggernaut has ground to a halt. Thailand p

Key Takeaways

  • The datacentre arms race hits pause in south-east Asia.
  • Power and water constraints are pressuring what seemed like a juggernaut of growth for the region just months ago In early 2026, Thailand’s datacentre industry was on a roll.
  • As the year has passed, however, what once seemed like a new industrial juggernaut has ground to a halt.

Power and water constraints are pressuring what seemed like a juggernaut of growth for the region just months agoIn early 2026, Thailand’s datacentre industry was on a roll. The country’s board of investment had recently announced approval of datacentre projects from Tiktok, a UAE-based Skyline datacentre and Singapore’s Bridge datacentres, totalling a planned investment of $27bn.As the year has passed, however, what once seemed like a new industrial juggernaut has ground to a halt. Thailand paused construction on 49 projects and approval decisions on 117 more in September 2026, amidst growing concern about the lack of sufficient details for regulation and monitoring. It is not alone in reconsidering datacentre projects. In neighbouring Indonesia, the governor of the country’s most populous province of West Java halted construction on a datacentre due to lack of permits and an incomplete environmental assessment process. Continue reading...

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