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August 6, 2026
Billions of dollars are pouring into data centre infrastructure across ASEAN and India. But securing land, capital, and power is no longer enough to get a project built. Discover why public affairs, from navigating government regulations and AI chip compliance to managing community pushback, has become the sector's ultimate bottleneck, and how operators can secure their licence to operate.
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Data centres were once seen merely as large buildings filled with servers. Today, they are as important to national economies as power grids, ports and telecommunications systems.
McKinsey estimates that the world will need to invest US$6.7 trillion in data centres between 2025 and 2030. By the end of the decade, Asia-Pacific could account for around 34% of global demand. Major Western cloud companies, including Amazon Web Services, Google, Microsoft and Oracle, have already committed more than US$160 billion to AI infrastructure in the region since January 2024. Much of this investment is moving into ASEAN and India.
However, money alone is not enough to get a data centre built. Developers still need suitable land and a reliable electricity supply, but they increasingly need something else: permission.
This means approval from governments, support from local communities, and the ability to navigate complex US-China tech rivalry to access advanced computer chips.
In short, data centre public affairs has emerged as the sector's defining bottleneck. Public affairs refers to how a company works with governments, regulators, communities and other groups that can influence whether a project moves forward. Companies that manage these relationships early are likely to build faster, while those who ignore them face costly delays.
Asia’s data centre operators are attracting levels of investment once reserved for major energy, transport and telecommunications companies. We are also seeing momentum build for the next major data centre IPO Asia has to offer.
Alongside these giants is a newer group of specialist cloud providers known as "neoclouds," which focus on providing the powerful GPUs required for AI.
These companies are searching for locations with available electricity, suitable land, supportive governments and rules that allow them to serve customers across borders. Markets such as Johor, Jakarta, Chonburi, and Mumbai are attracting intense attention from these players.
The next generation of data centres will not necessarily be built in the same places as the previous one.
According to figures by JPMorgan, Malaysia’s data centre development pipeline through 2030 stands at approximately 12,695 megawatts.
While Malaysia dominates the regional development pipeline, Singapore remains the region’s premium market. Monthly rents in Singapore can reach US$330 to US$475 per kilowatt, and construction costs sit around US$12 million per megawatt (compared to ~$7 million in Malaysia).
This price disparity is driven by policy. Singapore strictly limits new capacity and pushes for highly efficient facilities with a Power Usage Effectiveness (PUE) of 1.3 or better. PUE compares the total electricity used by a data centre with the electricity used directly by its computers. The closer the number is to 1, the more efficiently the facility uses power.
These restrictions keep Singaporean data centre space scarce and valuable, while encouraging overflow into neighboring Johor.
Three non-technical risks are converging, and none can be solved by engineering alone:
The United States restricts the export of certain advanced AI chips to China. In June 2026, the US government clarified that these restrictions can also apply to overseas subsidiaries of companies headquartered in, or owned by a parent company in, China.
This matters to data centre operators in Southeast Asia because some facilities may serve Chinese-owned technology companies or receive equipment through complex international supply chains.
Malaysia has introduced its own controls. Since July 2025, exports, transshipments and transit movements involving high-performance US-origin AI chips have been subject to a Strategic Trade Permit. Malaysia introduced the measure to prevent its territory from being used to bypass international export controls.
For operators and investors, chip compliance can no longer be treated as a small legal issue. Operators must clearly explain their supply chain compliance to both governments and partners.
Data centres require large amounts of electricity and, depending on their cooling systems, water. Communities are therefore asking practical questions:
What will the project contribute to the local economy? How many permanent jobs will it create? Will it increase pressure on electricity or water supplies? Who will pay for new infrastructure? Will local residents face higher costs?
These concerns are already becoming more visible in Malaysia. Protests and political debates in Johor and Selangor have focused on water use, electricity demand, environmental effects and whether local communities receive enough economic benefit from the projects.
Similar questions are being raised in India. At the groundbreaking for Google’s Visakhapatnam hub, India’s technology minister called on the industry to manufacture more equipment locally and reduce the amount of power and water used by data centres.
A general promise to “create jobs” is no longer enough. Operators need to provide clear information about local hiring, skills development, tax contributions, water management, renewable energy and support for nearby businesses.
Governments across ASEAN and India are still deciding how much data centre development they want and what conditions should apply.
Possible changes include restrictions on new projects, longer waits for grid connections, higher electricity tariffs, tougher sustainability standards and changes following elections.
S&P Global recently noted that Malaysia's data centre boom is entering a "reset" as regulators tighten efficiency requirements and raise utility costs and penalties.
S&P Global estimates that Malaysia may need more than US$20 billion over the next three years to finance around two gigawatts of new data centre capacity. This does not include the cost of advanced AI chips.
A developer may therefore secure land and financing but still face delays if electricity, water or political support is not available.
A company’s licence to operate does not only refer only to a legal permit, it entails the wider trust and acceptance a company needs to continue operating successfully.
Communications and public affairs should be planned alongside financing, power procurement, site selection and construction.
In practice, this means five things.
Operators should engage regulators, investment agencies, local authorities and electricity providers early. This helps identify possible restrictions before major capital has been committed.
Companies should be able to explain who their customers are, how equipment is sourced and how they comply with US, local and international rules
Local hiring, water use, renewable energy, infrastructure investment and community benefits should have measurable targets. Local spokespeople should also be able to explain this in the local language.
Opposition may begin on Reddit, HardwareZone in Singapore, Lowyat in Malaysia, Kaskus in Indonesia or local Facebook groups long before it is reported by a national newspaper.
Social listening can help companies identify concerns while there is still time to respond constructively.
A company considering an IPO will face detailed questions about customers, financing, energy supply, sustainability, regulatory exposure and political risk. Financial communications should therefore begin well before the listing process.
"We work with data centre operators, private equity investors, quantum computing players building the region's ecosystem, and renewable energy companies. Sitting at the forefront of innovation and of the policy discussions around it, we are closely clued into the space and its conversations. Our job is to make sure our clients are not just part of those conversations. They have a front row seat at the table."
Prayaank Gupta, Executive Director, Ellerton & Co.
Data centres have moved beyond specialist technology publications and into the mainstream public debate. The BBC, The New York Times, and CNN now regularly cover the sector. Hashtags such as #IndiaAIImpactSummit2026 and #ViksitBharatBudget also show how closely data centre investment has become connected with national technology, economic and industrial policies.
Ellerton & Co.’s media intelligence desk tracked 781,832 editorial and social media items concerning data centres across ASEAN and India between 1 January and 21 July 2026 (+11.4% YoY). The potential reach of this coverage rose by 61.6% to 1.13 trillion. (Potential reach is a cumulative estimate based on the possible audiences of publications, websites and social media accounts; one audience member can be counted more than once across different articles and platforms.)
Editorial and social mentions of data centres in ASEAN and India, year to date vs the preceding period
Indian media platforms generated approximately 155,000 items, with Mumbai and Maharashtra leading location associations. Within Southeast Asia, Malaysian media produced the largest volume of coverage, followed by Indonesia, Singapore, and Thailand. We’re seeing that the location of the coverage broadly matches the location of the investment.
Data centre mentions published by in-market media, Jan 1 - jul 21, 2026
Crucially, 49.1% of the conversation is neutral, this means public opinion has not fully settled.
This gives operators an opportunity to explain their projects before concerns over electricity, water, land and foreign control become fixed in the public debate. Companies that wait may have to respond to a narrative that has already been created by others.
Sentiment of 781,832 data centre mentions across ASEAN and India, Jan 1 - Jul 21, 2026
The capital has already begun moving into ASEAN and India.
However, access to financing will not be the only factor that separates successful projects from delayed ones. That "licence to operate" must be earned through clear communication, responsible business practices, and sustained local engagement.
Planning a data centre investment, market entry or listing in ASEAN or India? Speak to our team about building the government, media and community support your project needs.
Malaysia has the largest reported pipeline, with approximately 12,695 MW planned through 2030.
Strict government restrictions on available land and energy efficiency (PUE) keep supply extremely tight, driving up rents and valuations.
The main risks include government policy changes, delays in receiving electricity, US-China chip controls, higher utility costs and community concerns about electricity, water and land use.
Government approval, regulatory compliance and community support can determine how quickly a project is completed. Public affairs helps companies understand these groups, explain their plans and address concerns before they cause delays.
Operators should combine conventional media monitoring with social listening across Reddit, local forums, vernacular news outlets and community Facebook groups. Concerns often appear on these platforms before they reach national media or government officials.
Stay ahead with analysis and communications insights from teams working across SEA, India, and Europe.
Stay informed with Ellerton & Co.’s latest updates and expert insights at the intersection of PR and business.
