According to UnivDatos, the surging data center construction, growing adoption of high-density computing and AI workloads, Government digital initiatives and cloud-first policies, rising investments from global hyperscalers, energy efficiency and PUE optimization targets, expansion of edge and modular data centers, and growing focus on green and sustainable data centers drive the Southeast Asia Data Center Cooling market. As per the “Southeast Asia Data Center Cooling Market” report, the Market was valued at ~USD 279.20 million in 2024, growing at a CAGR of about 15.45% during the forecast period from 2025 to 2033 to reach USD million by 2033.

The data center cooling market of Southeast Asia is developing into a serious momentum as the region is becoming a cloud development, AI-driven workload, and hyperscale development hotspot. The increased heat-density and stricter energy-efficiency requirements are making operators re-evaluate their thermal-performance management strategy. Additionally, cooling is a strategic growth driver that defines design, investment, and competitive positioning, as well as an operational necessity. However, the emergence of new technologies and bigger market opportunities in the region.

Surging Data Center Construction is Fueling Cooling Demand

The surging data center construction is providing the cooling market with a direct boost, as each new facility requires high-performance, energy-efficient thermal control. The emergence of hyperscale campuses, edge sites, and large colocation facilities in Southeast Asia is generating significant pressure for more efficient cooling solutions that can support higher rack densities and AI-intensive workloads. As countries such as Singapore, Indonesia, and Malaysia are now emerging as digital infrastructure locations of choice, developers are shifting their attention towards those solutions that reduce the PUE and adhere to stringent environmental guidelines. The intense construction also promotes greater control of liquid cooling, as well as modular and hybrid cooling systems. With investments flowing into new data centers, the vendors of cooling receive a broader technology runway and increased growth power throughout the region.

On June 17, 2025, EDGNEX Data Centers by DAMAC, a global digital infrastructure company backed by the DAMAC Group, a global conglomerate headquartered in Dubai, announced the development of a next-generation AI-powered data center in Jakarta, Indonesia, its second in the market. This milestone project marks one of Southeast Asia’s largest AI-dedicated developments, with a future projected capacity of 144 MW and a total investment of USD 2.3 billion.

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Following the land acquisition completed in March 2025 by DAMAC, the site has entered early construction phases, with the facility’s phase one expected to be ready for service by December 2026.

Shift Toward Liquid and Immersion Cooling Systems

The rising shift in the market towards liquid and immersion cooling is progressively emerging amid the increased workload and heat output in the data centers. The systems are more efficient than traditional air cooling, particularly in high-density environments. Furthermore, companies are adopting them to reduce energy consumption, enhance thermal performance, and meet stricter sustainability requirements. This trend is now becoming the focus of new data centers in the region as the company relies on cloud services and artificial intelligence processing.

On 24 April 2025, ST Telemedia Global Data Centres (STT GDC), a leading data centre service provider in Asia, announced the launch of a direct-to-chip liquid cooling showcase at its flagship STT Bangkok 1 data centre facility. Showcasing advanced cooling technologies already supporting operational AI clusters, high-density racks, and live customers at Thailand’s first NVIDIA DGX-Ready data centre.

On May 15, 2025, Equinix, Inc. inaugurated its first International Business Exchange (IBX) data center in Jakarta, a joint venture with PT Astra International Tbk (“Astra”). This high-performance data center, known as JK1, offers access to over 50 global and local network service providers and internet exchanges, creating a robust ecosystem that supports businesses expanding in Indonesia. JK1 incorporates sustainability into its design, leveraging innovative technologies such as Cooling Array and liquid cooling technology, ensuring efficient heat management for high-density and high-performance computer workloads such as AI.

DCI Indonesia officially launched JK6 on June 3, 2025, the eighth data center, located at the DCI-H1 Campus in Cibitung, West Java. With a capacity of 36 megawatts, JK6 is the largest single-built data center in Indonesia. JK6 sets a new standard in Indonesia’s colocation data center with 36 megawatts of AI-ready capacity by its liquid cooling systems, designed to support high-performance computing needs. This brings DCI’s total capacity to 119 MW across 3 locations, and is a concrete response to Indonesia's growing demand for reliable, secure, and scalable digital infrastructure.

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Investment Momentum Transforming the Market

The market is experiencing a surge of investments from hyperscale operators, cloud giants, and regional colocation providers, who are investing substantial budgets in new cooling technologies. The trend towards creating green data centers is gaining momentum, with investments dedicated to the development of chillers powered by renewable sources, the use of sustainable refrigerants, and the implementation of AI-based thermal management systems. This trend is being facilitated by governments through the promotion of carbon-neutral projects and energy-efficient architectures. These investments enhance efficient operation but also compel the vendors to innovate more quickly and produce a more dynamic and competitive ecosystem. Further accelerating the process of innovation in cooling solutions in Southeast Asia are strategic alliances, technology, and cross-country expansion initiatives.

Southeast Asia’s Rapid Rise in Next-Gen Data Center Thermal Innovation

The market of data center cooling in Southeast Asia will experience long-term growth due to the digital acceleration of demand and more advanced infrastructure. To enable the development of AI, cloud, and hyperscale, operators are evidently moving to more efficient and lower-carbon cooling and toward increasing the number of cooling units. As investments intensify, new buildings are built, and demands on sustainability rise, the cooling technologies are changing their basic infrastructure to performance and scale, enabling strategies. The future of the region will be defined by the solutions that will combine effectiveness, trustworthiness, and environmental friendliness, making Southeast Asia one of the rapidly developing locations of next-generation data center cooling innovation.

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