KUALA LUMPUR, Jan. 22 (Xinhua) -- Maybank Investment Bank has estimated the Association of Southeast Asian Nations (ASEAN)'s data center market will grow at a compound annual growth rate (CAGR) of 20 percent by 2028.

The research house said in a note on Tuesday that it estimated about 14 percent of this growth will be driven by ASEAN's own needs, while 6 percent will be driven by global demand.

It sees ASEAN could emerge as a data center hub on the back of its favorable cost economics and power/water infrastructure.

While artificial intelligence (AI) provides long-term growth options within ASEAN, Maybank sees medium-term growth as being driven by ASEAN catching up in traditional data centers for cloud computing and storage.

It estimated ASEAN is 55 percent to 70 percent behind developed markets in data center infrastructure on a per capita basis or when adjusted for gross domestic product (GDP).

Following stringent new U.S. export controls to limit access to advanced AI technologies, Maybank chooses not to be overly negative and rather sees some pockets of potential optimism.

"Large AI-led data center announcements in ASEAN are U.S. hyper scaler-led, which we see as relatively better placed to navigate Tier-2 market sanctions," it says, adding that it sees potential for greater demand for GPU as a Service (GPUaaS) in ASEAN. Enditem

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