Hanoi (VNA) – The global artificial intelligence (AI) boom has bolstered economic fortunes across Asia, lifting Korean chipmakers, Southeast Asian data centre operators, Chinese AI startups, and Japanese component-makers alike, according to fortune.com.
Even the worst Middle Eastern conflict in decades isn’t slowing things down, the US magazine wrote, saying this week, Microsoft promised to invest 5.5 billion USD in cloud and AI infrastructure in Singapore, and an additional 1 billion USD into Thailand over the next few years.
In Southeast Asia, investment has focused more on assembly, precision manufacturing, and data storage. This provides a solid foundation for attracting further investment as global technology firms seek alternative locations.
However, the Middle East conflict is exerting mounting pressure. Higher energy and raw material prices are driving up the cost of AI infrastructure development, from chip production to data centre operations. Experts warn that higher expenses for power, cooling, shipping, and insurance could disrupt supply chains that are heavily reliant on Asia.
In the short term, the AI trade is strong enough to overcome worries over the Iran conflict. The Republic of Korea’s chip exports hit a record high of 32.8 billion USD in March, jumping more than 150% year on year, fortune.com cited government data released on April 1.
Over the longer term, however, the conflict is reshaping how AI development is approached. Growth models based on assumptions of abundant and inexpensive energy are being challenged, prompting companies to opitmise energy and resource use.
After investing heavily in the Middle East, AI companies are starting to look at Southeast Asia and India. This shift presents significant opportunities for regional economies to draw investment into data infrastructure and AI-related industries.
But when it comes to East Asia, data centre operators may face the longer-term challenge of limited power availability. AI businesses need to start pursuing “efficiency-first” design, reducing the energy and raw materials needed to foster AI.
Overall, despite cost pressures and supply chain risks, Southeast Asian countries are well positioned to deepen their participation in the global AI value chain as the industry gradually pivots toward more sustainability and efficiency./.
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