The digital landscape of South and Southeast Asia is undergoing a transformation, fueled by the explosion of artificial intelligence (AI) – and the rise of domestic AI initiatives.

According to 451 Research, data center capacity in Malaysia, Thailand, Indonesia, Vietnam and India is forecasted to increase at a 10-28 percent CAGR over the next five years, but it is already starting to look like some of these forecasts may be conservative as additional players enter the market.

The surge is driving an accelerating data center boom leading to a phenomenal growth in data processing power that presents both exciting opportunities and significant challenges.

As the data center market in the region expands at a rapid pace, there are several factors to be considered by data center operators.

Generative AI and sovereign AI: The need for local processing

Generative AI, with its ability to transform industries and reshape entire sectors, is growing by leaps and bounds. The region’s data centers will need to handle the immense processing power required to keep up with AI demands in order to lead the way in this evolution.

Globally, governments are fostering sovereign AI initiatives as a key competitive advantage across a wide range of industries, with a view to deploy the required AI capabilities using local infrastructure, workforce, and networks.

The wellbeing of entire nations is at stake, since successful AI initiatives will define future competitiveness, attract investment, foster innovation, and create high-skilled jobs.

In the context of the region’s data center boom, this translates to a focus on building data centers that are designed to nurture the development of domestic AI ecosystems while catering for regional and local needs.

The cooling challenge: How can your data center keep up?

The exponential growth in data processing power to support AI models brings significant challenges including heat dissipation and power. Traditional air-cooling methods struggle once the power density exceeds 10-15 kW per rack.

Generative AI can increase power consumption by more than 10 times. Since overall power considerations should cater for several generations of network equipment, new data centers will need to be prepared for a radical shift towards new technologies such as liquid-cooling solutions to support increasing GPU power requirements and achieve optimal efficiency.

High bandwidth, high density, high performance: Rip-and-replace or future proof?

As data volumes and processing needs skyrocket, so too does the demand for faster transmission speeds. The rapid adoption of 400Gbps, 800Gbps, and even 1.6Tbps optical speeds is revolutionizing data center connectivity.

Historically, application-specific Direct Attach Cables (DAC) and Active Optical Cables (AOC) may have been used for back-end networks, but removing and upgrading those cables can result in significant downtime, along with a significant volume of non-recyclable materials for each network upgrade.

Looking ahead, data center connectivity needs to be ready to handle the increasing speeds with the right combination of multimode and singlemode fiber structured cabling links, while avoiding rip-and-replace scenarios that negatively impact efficiency and sustainability.

New data centers will need a high-density, high-performance fiber optic infrastructure. The trend towards increasing link densities and higher speeds is pushing the industry towards innovative solutions like 16-fiber MPO assemblies and Very Small Form Factor connectors to maximize capacity and efficiency.

Consideration should also be given to deploying angled MPO8 and MPO16 connectors, which are required to support the high performance requirements of lossless Infiniband or next generation Ethernet networks.

Building for success: The ecosystem advantage

Building a future-proof data center infrastructure requires more than just high-quality components. A successful deployment hinges on a carefully selected vendor and partner ecosystem.

Collaborating with the right combination of ecosystem partners – including equipment vendors, infrastructure suppliers, systems integrators, installation partners and others – is critical in the race towards on-time delivery, seamless installation, and optimal performance.

Accelerating data center deployments: The road to digital transformation

The data center boom in South and Southeast Asia is a testament to the region's burgeoning digital economy. To harness the power of AI, and to unlock the region’s full digital potential, data centers will increasingly deploy innovative solutions for heat dissipation, high-speed connectivity, and high-density infrastructure, delivered by a robust ecosystem of vendors and partners. Are you ready?

Join us at DCD>Connect | Bali to discuss the latest trends and innovations in data center infrastructure and see how our solutions and our partner ecosystem can help you build a future-proof data center that meets the demands of the future, today.