Thailand and Indonesia are emerging as the newest data centre hotspots amid rising activity across Southeast Asia, according to Peter Jones, the newly appointed head of the Asia technology, media and telecommunications (TMT) practice at Herbert Smith Freehills Kramer (HSF Kramer).
Geopolitical tensions were prompting hyperscalers – large cloud computing service providers – to diversify their data centre locations, said Jones, adding that costs and access to reliable energy were also key drivers of investment.
“Data centre investment continues to increase across Asia – largely driven by demand curves including as driven by AI adoption. We’re seeing a clear uptick in a number of jurisdictions, including Thailand and Indonesia, in addition to existing investments in Malaysia and the Philippines,” he told Asia Business Law Journal.
“In very general terms, countries that can offer a lower cost base, access to dependable energy, and shorter planning processes will likely see high demand. Data sovereignty requirements may also impact location requirements. Continued diversification of data centre locations by hyperscalers in particular is also expected, focusing on issues such as resilience, redundancy and stability amidst unpredictable geopolitical tensions as well as in-country demand.”
Jones also touched on another major trend in the technology space – artificial intelligence (AI). With Vietnam’s Law on Artificial Intelligence taking effect on 1 March 2026, Jones expects other jurisdictions in the region to follow suit.
“It’s a case of when, not if, across the region, but the precise approach taken will differ between different governments depending on their respective policy positions and broader economic considerations – and the outcome will likely be influenced by a view of AI as a threat, an opportunity or somewhere in between,” he said.
AI will also shape data privacy and cybersecurity, acting as a double-edged sword – enhancing the sophistication of cyberattacks while aiding defences against them.
“We are already seeing AI enhancing the sophistication of targeted cyberattacks (especially using deep synthesis approaches), but AI also provides important counter-technology to detect patterns and risks and to facilitate effective defensive responses at scale and speed,” Jones added.
Critical infrastructure faced similar threats from nation states and quasi-state actors, he said.
“Certain nation states and quasi-nation state actors with high levels of sophistication are also looking at pre-positioning attacks, where cyber payloads are installed, often in critical infrastructure, and with the intention that the payload will be deployed at some time in the future (for example, where geostrategic tensions rise),” he said.
Having outlined these key trends, Jones said his goal during the next 12 months would be to position HSF Kramer to advise clients on emerging issues.
“That means adding our expertise to advice on digital infrastructure, data centres and energy tech; on essential cybersecurity and regulatory advice; and to the increasingly complex tech elements of M&A transactions and disputes,” he acknowledged.
Jones, who will relocate from Sydney to Singapore, will step into his new role with more than 30 years of legal experience in the Asia-Pacific region, including in Japan, Indonesia, Malaysia, Singapore and Hong Kong.
Specialising in cyber preparedness, resilience, simulations and incident response, Jones has previously advised major Asian corporations such as PCCW, Singtel and Vodafone Japan.
