Southeast Asia sees record loans for data centres

Southeast Asia is becoming a major hub for data centres as global tech companies move away from China due to rising geopolitical tensions. This shift is leading to record loans in the region. The growing interest in data centres is attracting different types of investors, including banks and real estate firms. Demand is being driven by the rapid growth of artificial intelligence. According to Cushman and Wakefield, a real estate services firm, demand for data centres in Asia is expected to grow by about 32 percent each year until 2028. This outpaces the United States, which is expected to see growth of 18 percent. However, changes in U.S. tariff policy could impact the industry. Yemi Tepe, a partner at Morrison Foerster, noted that the increased demand for data centre capacity is attracting a wide variety of capital investors across the Asia-Pacific region.