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Lawrence Yeo, ASEAN Solutions Director, Hitachi Vantara (Opinion)
In 2025, artificial intelligence (AI) became a tangible reality. Data centers expanded across Southeast Asia, graphics processing unit (GPU) procurement accelerated, and AI moved from concept to operational deployment.
But as adoption scaled, the constraints also became visible: power availability, operational cost, data management maturity and regulatory alignment. These realities are now shaping enterprise investment and national digital infrastructure policies.
For the past two years, many organizations approached AI as primarily a compute challenge. The assumption was that more accelerators would drive more capability. The surprise is that the limiting factor is no longer the model or the hardware. It is the ability to move, govern and secure data at scale. The true constraint is the data pipeline, the storage and network architecture that support it, and the operational discipline required to run these systems reliably.
The next phase of AI will be agentic, with systems making decisions and initiating actions in financial services, healthcare, logistics and manufacturing. For governments and regulated industries, this raises new questions of accountability, transparency and security. These systems require data that is accurate, governed and available in the right context, as well as infrastructure designed for high-throughput training, low-latency inference and continuous resilience.
This is where the conflict is emerging: regional demand for AI capability is rising, but the physical capacity to support it is finite.
Energy efficiency is becoming a strategic concern data center expansion in ASEAN — particularly in Singapore, Malaysia, Indonesia, Thailand and the Philippines — is now constrained by power and land availability. The region cannot simply scale capacity endlessly. Modernizing storage and compute platforms to dense, efficient architectures is now essential to ensuring that AI is economically and environmentally sustainable.
Data sovereignty is accelerating for similar reasons. Nations are strengthening expectations around residency, operational control and cybersecurity assurance. The future will not be a choice between public cloud and on-premises infrastructure, but hybrid models that combine local control with secure data mobility. What happens in Southeast Asia will matter globally, because the region is becoming a test case for how economies balance AI growth, sustainability and sovereignty.
The organisations and nations that lead in 2026 will treat data as a strategic asset. They will invest in energy-aware architecture, resilient data platforms and continuous talent development. AI maturity will not be defined by who has the most compute, but by who can operate the most disciplined and efficient data ecosystem.
ASEAN Solutions Director, Hitachi Vantara
Lawrence Yeo
Lawrence Yeo is responsible for developing and driving the adoption of Hitachi Vantara’s strategic solutions, key initiatives and overall GTM for business in ASEAN. He has over 10 years of experience in the IT industry and has extensive experience with many technologies and disciplines.
In his previous role as an IT architect, he was able to combine an understanding of business with near-expert technical knowledge over a very wide field. As a result, he has developed an expertise in researching new areas and coming up with workable solutions.
