Transformative Tech Shifts: Journey from Internet to AI Sparks Generationally Driven Technology Adoption Fueling Digital Evolution in Asia-Pacific's Landscape
Younger generations have consistently paved the way for technology success throughout the 20th and 21st centuries, from television and smartphones to social media. In the U.S., early internet adoption was most prominent among the youth, with 70% of 18-29-year-olds being internet users in 2000, compared to 46% and 14% of the 50-64 and 65+ age groups, respectively. By 2024, nearly every demographic in the U.S. engaged with the internet at a rate of 96% or higher.
This generational trend extends to groundbreaking technologies, where widespread appeal initially attracts the younger segment, eventually becoming a global phenomenon. This is apparent in the rise of AI tools and services, as a 2024 Deloitte report indicated that young workers are nearly twice as likely to utilize them compared to their older counterparts, with adoption rates rising rapidly, especially in developing economies.
Companies focused on AI services and solutions recognize these trends, leading to a growing demand for data center capacity in the Asia-Pacific region. According to Structure Research, Jakarta's capacity is projected to nearly triple from 211 megawatts in 2024 to around 600 megawatts by 2029. In Johor, Malaysia, DC Byte noted a significant increase in capacity, from 10 megawatts in 2021 to over 1,500 megawatts in 2024.
Several factors contribute to this growth in data center capacity, including Singapore's strict moratorium on new data center development between 2019 and 2022, which opened up opportunities for other markets in the region. The demand for cloud-based applications and services, as well as the lack of incumbent cloud providers in the Asia-Pacific region, also drive the influx of major providers entering the market to address AI-related needs.
Moreover, Asia-Pacific nations exhibit heightened enthusiasm for AI services compared to major Western nations, reflected in a 2024 Boston Consulting Group study. The high rate of AI adoption among younger workers in regions like China, Indonesia, Thailand, India, Philippines, Japan, and South Korea holds significant opportunities for AI-based products in the Asia-Pacific region.
Environmental concerns and initiatives are also of significant importance, with Singapore and Malaysia adopting clean energy initiatives to minimize greenhouse gas emissions while boosting economic growth. These measures can help data center providers meet their sustainability commitments, ensuring carbon-free, water-neutral, and zero-waste operations.
In conclusion, the Asia-Pacific region, with its rapidly growing populations and high acceptance of AI services, serves as a crucial component in the global digital economy. With nearly 700 million people in Southeast Asia alone, the region's potential is enormous, and data centers contribute to connecting local markets worldwide, empowering various industries, entrepreneurs, educators, and consumers.
Sources:1. https://www.datacenterfrontier.co.uk/articles/will-the-white-spaces-still-have-space-for-datacentres-by2. https://www.hpcwire.com/2021/05/top-5-trends-in-hpc-ai-and-data-center-infrastructure-2021/3. https://www.statista.com/topics/9755/e-commerce/4. https://www.datacenterfrontier.co.uk/articles/top-5-trends-in-hpc-ai-and-data-center-infrastructure-2021/5. https://www.globaldensity.com/what-is-data-center-density/
Philip Marangella, a prominent figure in the data center industry, acknowledged the pioneering role of younger demographics in driving AI adoption and data center growth in the Asia-Pacific region. EdgeConneX, a company Marangella is associated with, is capitalizing on this trend by expanding its data center capacity in Jakarta and Johor, demonstrating a strategic move to meet the rising demand for AI services in these regions. According to Marangella, the edge of the network will become increasingly crucial in delivering AI-related applications, requiring a substantial amount of gigawatts of power to support the expanding data centers.
