APAC data-center expansion faces financing, permitting and power constraints

APAC’s data-center buildout is encountering simultaneous constraints in capital markets, regulation and power infrastructure, with recent developments across Australia, the Philippines, Indonesia, Thailand and Malaysia highlighting execution risks for new capacity.

Firmus withdrew its planned AU$7.1 billion IPO, equivalent to US$4.97 billion, and now intends to seek up to US$3 billion through private fundraising. Separately, CDC Data Centers removed Firmus from a joint Australian AI-infrastructure project, citing concerns over Firmus’s expansion in Southeast Asia. The episode underscores the sensitivity of large-scale infrastructure plans to financing availability and investor confidence.

In the Philippines, PLDT has postponed the planned listing of its Vitro data-center REIT until 2027, citing market conditions and higher interest rates. The listing had been expected to raise up to PHP24.2 billion, or US$385.1 million. The Philippine central bank had recently raised interest rates by 25 basis points, adding to funding-cost pressure for capital-intensive digital-infrastructure assets.

Permitting is also affecting project execution. Authorities in Indonesia’s West Java province halted Singapore-based BDX’s 640 MW project because key approvals, including an environmental assessment, were absent. The 640 MW figure is reported as total project capacity; the available material does not specify whether it refers to IT load, total campus power or another measure. No timeline for a potential restart has been provided.

Thailand has suspended 166 data-center projects while developing new industry rules. Of these, 49 were under construction and 117 were awaiting approval. The suspension does not establish whether, or when, the projects will proceed.

Power availability is emerging as a parallel constraint. According to the head of the Malaysian Energy Commission, annual electricity-demand growth has increased from roughly 1.5–2% to nearly 10%, attributed to data-center development. The statement does not provide a measurement period or methodology.

Taken together, these developments could point to greater capital selectivity and slower progression from announced projects to construction and operations across APAC. Long-term power arrangements, environmental and other permitting requirements, and the availability of financing may become as consequential to project delivery as underlying demand.