Is Southeast Asia’s data centre boom headed for a PR crisis?

• By Prayaank Gupta - Executive Director, Ellerton & Co. Public Relations
• As seen on e27

As billions in investment pour into Southeast Asia’s data centre sector, US$6.3 billion to be specific, a rising tide of public scepticism over energy and land consumption has been raised at the Singapore-Johor-Riau (SIJORI) dialogue.

This, in turn, could create a critical public relations challenge – for digital infrastructure investors, operators and players, this could create a wider Public Relations problem on how they engage meaningfully with regulators.

Southeast Asia is aggressively building the engine rooms of the digital economy. With a staggering US$6.3 billion invested in the sector in 2024 alone, the race to power AI, cloud computing, and digital banking is undeniable. Hotspots like Johor in Malaysia are booming, absorbing demand from constrained neighbours, while Thailand and the Philippines are rolling out the red carpet for hyperscale operators. Malaysia, in particular, is taking a leading role. Its digital investments surged 125 per cent quarter on quarter in the second quarter of 2025, per the Malaysian Digital Economic Corporation.

But beneath the headline figures lies a potential disconnect. As government and industry leaders conceded at the recent SIJORI dialogue, immense strains on energy grids, water resources, and land availability – with a lack of viable solutions – could create friction, breaking momentum. This is also, in part, fuelling a perception gap where communities see only resource-intensive black boxes, not strategic assets. This disconnect is fast becoming a significant business risk, escalating into a looming public relations crisis for the industry.

According to industry analysts, this perception problem is largely self-inflicted. The historical model of development prioritised speed and discretion over public dialogue, creating a communications vacuum. This is a reactive situation that a specialised PR agency that works closely with media and other stakeholders are brought in to carefully manage, rather than a proactive strategy to build trust from the outset.

From technical problem to PR solution

The tough questions about sustainability are now driving policy. In Singapore, where data centres strain the power grid, the government’s post-moratorium criteria heavily favour green efficiency, a direct response to public and environmental pressure. For operators, navigating this complex landscape now requires more than just engineering excellence; it demands sophisticated communications, often leading them to seek specialist PR experts to help articulate their value proposition.

Forward-thinking developers argue that the solution to these challenges is a new, holistic development model, built around sustainability. We talk to technology leaders – from hybrid cooling systems to quantum computing innovators; water treatment providers; renewable energy providers – all focused and committed towards sustainable, responsible growth.

This strategy transforms an infrastructure project into a positive PR story. New development models, for instance, are integrating vast green spaces, contributing to local community funds, and sharing network capacity to boost rural connectivity. In the process these infrastructure operators and partners are creating jobs, and becoming a visible community partner.

The next wave demands a new narrative

The need for a better public relations strategy is being amplified by the arrival of next-generation technology. The immense power and stability required by AI and quantum computing render the old development model obsolete.

This future is already here: For instance, BDx Data Centres recently announced the launch of Singapore’s first commercial use of quantum computing within its facilities, with the potential to drive further advancements in technology innovation and sustainability. This highlights the region’s technological ambition, but also underscores the urgent need for a public mandate to support such powerful infrastructure.

Ultimately, the entire region requires a more cohesive communications strategy. The scale and cross-border nature of the industry suggest a growing need for a strategic PR across Southeast Asia that can tailor a compelling narrative to the unique cultural and political nuances of each market.

Data centre operators, governments and developers must urgently reframe the conversation. They must proactively explain not just what data centres are, but what they do for society. If the industry continues to treat community engagement as an afterthought, it will find its path to growth blocked not by a lack of capital, but by a lack of trust. The race for Southeast Asia’s digital future will be won not just by building infrastructure, but by building understanding.