Asia-Pacific hotbed for AI and cloud investments, says GlobalData

Tech giants target APAC to step up AI and cloud investments, reveals GlobalData

Tech giants target APAC to step up AI and cloud investments, reveals GlobalData

Asia-Pacific (APAC) is rapidly emerging as a global artificial intelligence (AI) powerhouse, with strategic investments fueling its ascent. Major tech companies pouring billions of dollars into the region to accelerate cloud and AI adoption is indicative of the immense potential and opportunities in this dynamic market. This evolution, driven by the region’s growing technological capabilities and robust digital infrastructure, is reshaping the region’s AI landscape, according to GlobalData, a leading data and analytics company.

An analysis of GlobalData’s News Database reveals that the APAC region has been a hotbed of AI investments in recent months. With the support of tech giants and the region’s strong economic and technological foundations, APAC is set to lead the way in AI and cloud adoption.

Tejal Hartalkar, Senior Disruptive Tech Analyst at GlobalData, comments: “The influx of AI and cloud investments in APAC signals more than a temporary boom. It is a significant realignment that could position the region at the forefront of AI innovation. Countries like Singapore, Malaysia, Indonesia, and Thailand are leveraging strategic investments to build AI-driven economies. The substantial backing from big techs aimed at accelerating cloud and AI adoption in APAC is a testament to the region’s capability to attract and execute large-scale technology projects.”

Tech Companies

Some of the key investments attracted by the APAC region include:

Microsoft

Microsoft announced significant investments across Southeast Asia and Japan to boost cloud and AI infrastructure in 2024 so far. These include $2.2 billion in Malaysia to establish a national AI Center of Excellence and enhance cybersecurity; $1.7 billion in Indonesia for data centers and AI skilling for 840,000 individuals; and $2.9 billion in Japan for expanding hyperscale computing and AI training for over 3 million people. Additionally, the company plans to develop new AI infrastructure and skill over 100,000 people in Thailand. These initiatives are expected to help Microsoft reach its goal of equipping 2.5 million people with AI skills in Southeast Asia by 2025.

Amazon

Amazon outlined substantial investments in APAC cloud infrastructure in 2024. The company announced a $12.7 billion cloud investment in India by 2030 and plans to establish a new infrastructure region in Taiwan by early 2025 to meet the high demand for cloud services. Additionally, Amazon’s AWS will invest $8.88 billion in Singapore’s cloud infrastructure over the next four years and over $5 billion in Thailand by 2037, with plans to launch the AWS Asia Pacific (Bangkok) Region by early 2025. These expansions aim to support advanced technologies like generative AI and machine learning (ML).

Google

Google also boosted its infrastructure investments in Southeast Asia. In June this year, the company increased its total investment to $6.7 billion in Singapore, following the completion of its fourth data center in the region. Additionally, in May, Google pledged $2 billion for a hyperscale data center and a new Google Cloud region in Malaysia to enhance its AI service delivery to enterprises.

NVIDIA

NVIDIA announced initiatives to enhance AI capabilities in Asia in 2024. In May, the company revealed a collaboration with Japan’s digital infrastructure providers, supported by a $740 million investment from Japan’s Ministry of Economy, Trade and Industry, to develop generative AI infrastructure, boost AI adoption, enhance workforce skills, and support local startups. Additionally, in April, NVIDIA committed to establishing a $200 million AI Center in Indonesia.

Hartalkar concludes: “The rapid advancements in AI across APAC are not only addressing immediate technological needs but are also paving the way for a data-driven, innovative, and sustainable future. However, the region faces several challenges in cloud and AI growth, including significant disparities in AI readiness among countries, inconsistencies in internet connectivity in many parts of the region, varying regulatory frameworks, and a lack of skilled talent.

“Despite these hurdles, there is a strong commitment across the region to harness cloud and AI for inclusive growth and sustainable development, offering incredible opportunities for investors and indicating a promising path forward.”