Kuala Lumpur & Jakarta data centre markets to surge by 2030

Structure Research has published new market reports profiling the data centre sectors in Kuala Lumpur and Jakarta, analysing regional growth drivers and future trends in Southeast Asia.

The Kuala Lumpur DCAI Report 2025 and Jakarta DCI Report 2025 contain projections indicating strong market momentum in both cities, with regional spillover from Singapore's current capacity limits acting as a catalyst for development.

Colocation market growth

According to Structure Research, the value of Kuala Lumpur's colocation market is expected to reach $300 million in 2025 and is forecast to grow to $1.1 billion by 2030, representing a compound annual growth rate (CAGR) of 31%. This anticipated expansion is attributed to the ongoing hyperscale cloud deployments, rising AI infrastructure investments, and Kuala Lumpur's geographic proximity to Singapore and Johor.

The Jakarta market shows a similar upward trend, though at a moderate pace compared to Kuala Lumpur. Structure Research projects Jakarta's data centre colocation market will be valued at $507.2 million in 2025, rising to $856 million by 2030, with an expected CAGR of 11%. The report notes the continuation of market growth following a period of slower expansion, along with the renewed capital expenditure from Chinese cloud providers and increasing regional activity from hyperscale and AI-native firms.

Regional infrastructure buildout

"Southeast Asia is entering a transformative phase of infrastructure buildout, and both Kuala Lumpur and Jakarta are becoming central to the next wave of growth," said Philbert Shih, Managing Director of Structure Research. "Hyperscale and AI infrastructure platforms are reshaping deployment models, and these markets are well-positioned to support new demand patterns, regional redundancy, and diverse workloads."

Structure Research's Kuala Lumpur report details the expansion of global cloud operators - such as Alibaba Cloud, AWS, Microsoft, and Google - in the Malaysian capital. These companies are adopting a range of strategies including colocation, build-to-suit solutions, and self-build facilities, signalling a competitive and differentiated market approach. The report also captures data on self-build and leasing activity, current and forecasted market inventory, demand segmentation, and interconnection trends.

Kuala Lumpur's proximity to Singapore and Johor is identified as a key advantage, with data centre operators in the city increasingly attracting AI inference and cloud infrastructure workloads. This trend is expected to continue as vendors seek regional alternatives to Singapore's limited capacity.

Jakarta's market realignment

The Jakarta market is forecast to see over 65MW of new hyperscale colocation inventory added during 2025, with total market capacity projected to double by 2030. The report states that Chinese cloud providers, after a recent downturn, have resumed significant CapEx investments, while major US-based hyperscalers and AI-specialist platforms are also expanding their footprint in the Indonesian capital.

Renewed interest in interconnection is noted, particularly from global operators and enterprises aiming to diversify their deployments across Southeast Asia. Jakarta's data centre ecosystem is reported to be adapting, with enhanced regional interconnection options and the emergence of more geographically clustered facilities.

Data-driven insights

Both the Kuala Lumpur and Jakarta reports supply stakeholders with data on market value, hyperscale leasing and self-build trends, regional interconnection, and the development of geographic clusters. Structure Research's datasets are designed to inform planning and investment strategies for data centre operators, cloud providers, and infrastructure investors.

Bangkok report preview

In addition to the Kuala Lumpur and Jakarta findings, Structure Research is preparing to publish an updated report on Bangkok's data centre sector. Previous analysis valued the Bangkok market at $165 million in 2024 with just over 56MW of operational capacity. Bangkok is projected to experience rapid growth, reaching $540 million by 2029, fuelled by further hyperscale cloud deployments and emerging AI-driven demand.

The upcoming Bangkok report is expected to provide updated figures and insights for those tracking the digital infrastructure market in Southeast Asia.