New Delhi: Global investors are turning their attention to East and Southeast Asia amid rising demand for artificial intelligence (AI), with India, Singapore and Malaysia quickly emerging as leading destinations for data centre infrastructure and chip manufacturing, according to a new report by Moody’s Analytics.
Titled AI Is Beating the Odds, the report notes that even as cross-border investments wane and global trade faces increasing fragmentation, capital expenditure on AI technologies continues to defy the downturn.
A growing gap between the soaring demand for AI and the limited global supply of infrastructure is pushing companies to invest aggressively in semiconductor projects and data centres.
The analysis highlights that developed and emerging markets in East and Southeast Asia are particularly well-positioned to benefit from this trend.
However, India, in particular, is becoming a central hub due to its large digital talent pool, rapidly expanding economy and government-backed initiatives aimed at boosting tech infrastructure.
Singapore and Malaysia also feature prominently, offering cost efficiencies, strong policy support and increasing regional demand for AI-enabled services.
Moody’s Analytics observed that US technology firms are leading the charge, with outbound AI-related investments from the US surpassing inbound flows. This indicates a strategic move by American tech companies to extend their operations globally, especially in high-potential Asian markets.
