Southeast Asia’s AI boom has a power problem — and it’s being underestimated

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The artificial intelligence (AI) boom is often framed as a race for compute power, talent and investment. But beneath the surface, a different constraint is emerging; one that is far less visible and harder to scale. Energy.

The rapid expansion of AI infrastructure globally is beginning to test the limits of power grids, water systems and public tolerance.

Data centers, once treated as neutral enablers of the digital economy, are now at the center of a growing tension between technological ambition and physical reality. Southeast Asia is not yet at the center of that tension. But it is moving quickly in that direction.

Across the region, governments are positioning themselves as the next hubs for AI infrastructure. Investments are pouring into data centers, semiconductor ecosystems and AI-enabled industrial zones.

Global cloud providersare expanding aggressively, drawn by policy support, improving connectivity and proximity to fast-growing markets. For now, the momentum...

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