An AI bonanza is in full swing in Southeast Asia, and everyone’s trying to strike while the iron’s hot.
It’s WAY cheaper to build and operate in the region compared to North America or Europe, thanks to lower land, labor and energy costs. For example, the electricity prices for business in the US or Germany could be 2-3 times more expensive than Vietnam or Indonesia, according to data provider GlobalPetrolPrices.
And that’s why the OGs are coming. OpenAI will open an office in Singapore at the end of the year, while Nvidia is set to open a research center in Vietnam. In Malaysia and Indonesia, Microsoft is putting nearly $4 billion into cloud and AI infrastructure.
But it’s not just the Americans coming to the party. Alibaba Cloud is expanding in Indonesia and Thailand, with plans to partner with 100 local businesses by 2025. Tencent Cloud is also making a big push, investing $500 million in Indonesia, with plans to launch a THIRD data center in the country.
Spillover effect
As more 💰💰💰 flows into AI and cloud tech, the increased competition should translate into cheaper cloud services, better support and faster scaling opportunities for businesses in the region.
“There’s a cloud war brewing, and it’s a blessing for startups,” says Dave Richards from Capria Ventures, adding that more players means better services at competitive prices.
There will also be a positive spillover effect, “boosting AI expertise in these countries,” Roshan Raj, partner at Redseer, tells MONIIFY. Think data science, cybersecurity and engineering, which are seeing wages rise despite a global tech winter.
Companies such as Alibaba Cloud and Microsoft also have ambitions of churning out fresh cloud-computing talent.
