Kuala Lumpur and Jakarta Data Center Markets Show Strong Growth Projections Through 2030
August 27th, 2025 3:31 PM
By: Newsworthy Staff
Structure Research's 2025 reports project significant expansion in Southeast Asian data center markets, with Kuala Lumpur expected to grow at 31% CAGR and Jakarta at 11% CAGR, driven by hyperscale cloud expansion and AI infrastructure development.

Structure Research has released comprehensive reports analyzing the Kuala Lumpur and Jakarta data center markets, projecting substantial growth through 2030. The Kuala Lumpur data center colocation market is projected to be worth USD $300 million in 2025 and is expected to reach $1.1 billion by 2030, representing a five-year compound annual growth rate of 31%. This growth is driven by hyperscale cloud expansion, AI infrastructure development, and Kuala Lumpur's strategic positioning near Singapore and Johor.
The Jakarta data center colocation market shows different dynamics, projected to be worth USD $507.2 million in 2025 and expected to grow at a five-year CAGR of 11% through 2030, reaching $856 million. The market continues to grow steadily, with hyperscale cloud stabilizing after a period of deceleration, Chinese cloud platforms resuming CapEx investment, and AI-native providers entering the region. Over 65MW of hyperscale colocation inventory is expected to come online in 2025, with overall capacity projected to double by 2030.
According to Philbert Shih, Managing Director of Structure Research, Southeast Asia is entering a transformative phase of infrastructure buildout, with both Kuala Lumpur and Jakarta becoming central to the next wave of growth. Hyperscale cloud providers including Alibaba Cloud, AWS, Microsoft, and Google are expanding their presence in Kuala Lumpur with a mix of colocation, built-to-suit, and self-build strategies. The city is poised to attract AI inference and cloud infrastructure workloads, leveraging its proximity to Singapore and Johor.
In Jakarta, Chinese clouds are recovering from a downturn and re-engaging with new investments, while U.S.-based hyperscalers and AI-focused platforms are increasing market presence. The city is seeing renewed interest in interconnection, particularly from global operators and enterprises seeking to diversify deployments across the region. Both reports provide detailed data on market size, hyperscale leasing, self-build capacity, interconnection, and geographic clustering, equipping investors, operators, and stakeholders with insights to guide expansion strategies in Southeast Asia.
The reports are available through Kuala Lumpur DCAI Report 2025 and Jakarta DCI Report 2025. Structure Research also announced that the Bangkok 2025 Report will be released in Q4, providing updated insights into one of Southeast Asia's most promising emerging data center hubs, following their 2024 report which valued the Bangkok market at approximately USD $165 million with expectations to reach $540 million by 2029.
Source Statement
This news article relied primarily on a press release disributed by citybiz. You can read the source press release here,
