ASEAN Needs Rp2,706 Trillion to Build Data Centres

Jakarta, CNBC Indonesia — The Asian Development Bank (ADB) says ASEAN countries—Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste and Vietnam—will need US$584 billion in digital infrastructure investment through to 2040.

The total investment requirement is equivalent to 0.7% of the region’s gross domestic product. Most of it will go towards mobile broadband infrastructure, at US$311 billion, followed by data centres at US$150 billion, equivalent to Rp2,706.85 trillion at an exchange rate of Rp18,045 per US dollar, and fixed broadband at US$123 billion.

“The methodology for measuring investment needs focuses on the supply side of digital infrastructure and does not yet include demand-side considerations, such as subscriptions, devices and data centre capacity utilisation,” the ADB said in its report, ‘The $7 Trillion Challenge: Building ASEAN’s Future’, cited on Tuesday (10 November 2026).

The ADB said digital infrastructure in ASEAN needs to be expanded as broadband adoption, digital services and data traffic increase.

Fibre-optic backbone networks provide the high-capacity connectivity needed to link users, mobile and cable networks, data centres and international gateways.

Developing digital backbone infrastructure is becoming increasingly important, the ADB said, as digital services become more data-intensive and infrastructure such as cloud computing platforms and data centres expands.

Strong domestic and cross-border connectivity allows this capacity to be accessed efficiently and supports the growing volume of digital traffic.

The ADB’s latest estimates show that intercity fibre-optic backbone networks across Asia and the Pacific need to be upgraded by 35% to support universal broadband availability and enable data centre expansion. Central and West Asia have the largest fibre-backbone gaps because of the long distances between population centres across desert, semi-desert and mountainous terrain.

Regional corridors

Regional digital corridors and shared infrastructure can further strengthen backbone networks by connecting economies to neighbouring markets and international routes.

Regional fibre-optic connectivity can widen access to high-capacity networks, particularly for landlocked economies. Shared infrastructure can also be more efficient than building large-scale domestic capacity independently, especially where backbone, investment or energy constraints persist.

Submarine cables

Submarine cables are critical infrastructure for international connectivity, carrying most global data traffic and linking national networks to regional and global digital markets.

As demand grows for broadband, cloud computing, data centres and digital services, reliable and resilient international connectivity is becoming increasingly important to each country’s digital transformation.

Co-ordinated investment in cable systems, cable landing stations and terrestrial backhaul networks can improve connectivity, strengthen network resilience and expand access to international capacity, particularly in underserved markets.