As competition between the United States and China over artificial intelligence intensifies, ASEAN faces a critical strategic challenge: ensuring that Southeast Asia becomes more than a host for global AI infrastructure and develops sufficient technological capabilities to maintain control over its own digital future.
In an analysis published by the South China Morning Post, Dr AbdulWahed Jalal Nori, assistant professor at the International Islamic University Malaysia and coordinator of the Centre for Foresight Studies, argues that ASEAN’s central question is no longer whether it will participate in the AI revolution, but whether it can retain meaningful control over the infrastructure, knowledge and systems increasingly shaping its economies and societies.
Southeast Asia Emerges as a Major AI Infrastructure Hub
ASEAN is rapidly becoming an important physical centre for the global AI economy.
Investment in data centres, cloud infrastructure and digital connectivity is accelerating across the region, with Malaysia and Singapore emerging as significant hubs while Indonesia and Thailand seek to capture a greater share of the expanding digital infrastructure market.
The scale of this transformation is significant. The International Energy Agency expects electricity demand from data centres in Southeast Asia to more than double by 2030, demonstrating how quickly AI and cloud computing are reshaping the region’s infrastructure requirements.
This expansion creates substantial opportunities for investment, employment and economic development. However, it also raises an important question about how much of the underlying technology ASEAN itself controls.
The Risk of Becoming Infrastructure Without Technological Control
ASEAN countries may increasingly provide the land, electricity, connectivity, consumers and physical infrastructure required to support AI development while continuing to depend heavily on external suppliers for advanced semiconductors, foundational AI models, cloud platforms and technological standards.
This creates a new form of strategic dependency.
A country may retain political sovereignty while becoming increasingly reliant on foreign-controlled technologies to operate important economic, governmental and social systems.
For ASEAN, the challenge is therefore not simply attracting more AI investment. The region must also strengthen its ability to understand, develop, govern and adapt the technologies being deployed within its economies.
US–China Technology Competition Raises the Stakes
The challenge is becoming more urgent as the United States and China develop increasingly distinct technology ecosystems.
The article notes that Washington is seeking to encourage participants in its Pax Silica initiative towards US-aligned technology frameworks, while China continues expanding its AI engagement with Southeast Asia through infrastructure, research, training and industrial applications.
For ASEAN, being forced into an exclusive technological alignment could undermine the strategic flexibility that has long characterised the region’s international relations.
ASEAN has traditionally sought constructive relationships with multiple major powers rather than positioning itself exclusively within one geopolitical bloc. AI infrastructure, however, could make maintaining that flexibility increasingly complicated.
Strategic Autonomy Does Not Mean Technological Isolation
Securing ASEAN’s technological autonomy does not require Southeast Asia to build every semiconductor, AI model or cloud platform independently.
Instead, the objective should be to maintain sufficient agency, capability and choice so that ASEAN countries are not permanently dependent on a single external technological ecosystem.
This could involve diversifying technology partnerships, supporting regional AI development, investing in local research capabilities and ensuring critical systems remain interoperable across different technology providers.
Such an approach would allow ASEAN to continue benefiting from investment and expertise from both Western and Chinese technology companies while protecting its ability to make independent strategic decisions.
ASEAN Needs Stronger Regional AI Capabilities
Building genuine autonomy will also require investment in the region’s own technological capabilities.
Southeast Asia already possesses several important foundations, including rapidly expanding digital economies, significant data-centre investment, growing technology talent and increasingly sophisticated manufacturing ecosystems.
The next phase should involve strengthening capabilities in areas such as AI research, semiconductor design, cloud computing, cybersecurity, data governance and advanced digital skills.
Regional cooperation could be particularly important because individual ASEAN economies may struggle to achieve sufficient scale independently.
A coordinated ASEAN approach could allow member states to combine their respective strengths while creating a larger market capable of supporting regional technology companies and research ecosystems.
Data Governance Becomes a Strategic Priority
AI systems depend heavily on data, making governance another central component of technological sovereignty.
As governments and businesses increasingly deploy AI across healthcare, finance, transportation, public administration and other critical sectors, decisions surrounding where data is stored, how it is processed and who can access it become matters of strategic importance.
ASEAN therefore faces the challenge of creating frameworks that encourage innovation and cross-border digital commerce while maintaining appropriate safeguards over sensitive information.
The region’s evolving digital integration agenda provides an opportunity to establish stronger common principles around data governance, cybersecurity and responsible AI development.
ASEAN’s Economic Opportunity Remains Enormous
The strategic risks should not overshadow the enormous economic opportunities created by AI.
Southeast Asia’s young population, expanding digital economy, manufacturing capabilities and rapidly developing infrastructure make the region highly attractive to global technology companies.
Malaysia and Singapore’s emergence as major data-centre locations demonstrates how ASEAN can benefit from the global AI investment cycle. Indonesia, Thailand and other regional economies are similarly positioning themselves to attract technology infrastructure and digital investment.
The challenge is ensuring that this investment produces deeper economic capabilities rather than leaving ASEAN primarily responsible for supplying physical infrastructure.
Greater participation in research, software, AI applications, advanced manufacturing and intellectual property could allow Southeast Asian economies to capture more value from the technology revolution.
Turning ASEAN Centrality Into Digital Strategy
For decades, ASEAN centrality has provided the region with a diplomatic framework for engaging competing global powers without becoming exclusively aligned with any one of them.
Artificial intelligence now creates an opportunity — and necessity — to extend that principle into the technological sphere.
Digital strategic autonomy could mean maintaining diverse partnerships while developing enough domestic and regional capability to ensure that ASEAN retains meaningful choices over its technology architecture.
This approach would not require rejecting US or Chinese investment. Instead, ASEAN could seek to ensure that partnerships contribute to local capabilities through research cooperation, talent development, technology transfer and investment in regional innovation ecosystems.
Looking Ahead
The global AI competition presents ASEAN with a defining economic and strategic choice.
Southeast Asia is already becoming an increasingly important location for the infrastructure powering artificial intelligence. But hosting data centres and attracting technology investment alone will not guarantee long-term technological strength.
ASEAN’s larger objective must be ensuring that the region develops the skills, institutions, infrastructure and technological capabilities necessary to exercise genuine agency over its digital future.
The region does not need to choose between technological isolation and dependence, nor necessarily between the United States and China. Instead, it can pursue a strategy that welcomes international investment while strengthening its own capabilities and preserving flexibility between competing technology ecosystems.
As AI becomes increasingly intertwined with economic competitiveness, national security and public infrastructure, ASEAN’s ability to maintain technological choice could become as important to its future strategic autonomy as trade, energy and defence.
