Southeast Asia’s Digital Economy to Reach $368B in 2026, but Data Rules Pose a Challenge - TechRepublic

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Southeast Asia’s projected $368 billion digital economy highlights the opportunities for regional expansion, even as differing national data rules complicate cross-border operations. Image: Z/Unsplash

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Southeast Asia’s digital economy is booming, but its borders remain a challenge for businesses trying to scale. A growing network of cloud and AI infrastructure must navigate data regulations that differ sharply between countries.

The region’s digital economy is projected to reach $368 billion in gross merchandise value (GMV) in 2026, up 17% year over year, according to an October 21 report from Google, Temasek and Bain & Company. The growth reflects expanding digital commerce and AI adoption, even as national data-transfer rules complicate cross-border operations.

Companies deploying regional cloud services and AI workloads...

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