The rapid expansion of artificial intelligence infrastructure is generating significant new revenue opportunities for telecommunications companies as data centres and enterprises across Southeast Asia demand faster, more reliable connectivity.
During a virtual media briefing on 30 July, networking equipment provider Ciena outlined how the growing scale of AI data centre networks is reshaping demand for high-capacity connectivity services worldwide. The company said revenue from such services is forecast to grow at a compound annual rate of 18 per cent from 2025 to 2030. Southeast Asia is expected to outpace the global market, with annual growth projected at 22 per cent over the same period.
“We believe that service providers who are well-prepared to take advantage of these opportunities will unlock this new revenue growth curve by enabling this AI ecosystem,” said Francisco Sant’Anna, senior adviser for market intelligence at Ciena.
Key Drivers Behind Rising Demand for AI Data Centre Networks
Ciena identified three primary sources of demand fuelling growth in AI data centre networks and high-capacity connectivity. The first is the scale of investment by hyperscale and AI-focused cloud providers. According to the company, major cloud operators are expected to invest a combined $600 billion in new data centres in 2026 alone. When spending by smaller cloud providers specialising in AI computing referred to as “neoscalers” is factored in, total AI infrastructure investment could exceed $1 trillion.
These investments will require network providers to connect large data centres used for training and running AI models, as well as link increasingly distributed computing facilities. Smaller AI cloud providers may also need flexible bandwidth and managed connectivity services as their operations scale.
The second driver is the growing geographic distribution of data centres. The physical requirements of AI data centre networks, including access to land, power, and water are pushing facilities farther from major urban centres. At the same time, data sovereignty regulations and the need to reduce latency are encouraging companies to establish more facilities closer to their end users. Ciena said this trend is already visible in Southeast Asia, particularly in Indonesia, Malaysia, and the Philippines.
The third source of demand comes from enterprise AI adoption. As companies deploy more inference workloads, existing networks can become bottlenecks in moving data between users, cloud platforms, and computing facilities.
Southeast Asia Emerges as a Growth Hub for AI Infrastructure
Alex Wong, Ciena regional managing director for Asean, Hong Kong, and Taiwan, said Southeast Asia has the land, power, water, fibre infrastructure, and cross-border links needed to support the expansion of AI data centre networks. He also pointed to continuing investments and a developing regulatory environment across the region.
The Philippines, in particular, could benefit from several submarine cable systems expected to land in the country, strengthening its links to regional and global data centres. Ciena said it is working with local telecommunications companies including PLDT, Globe, and Converge to develop networks capable of supporting hyperscale investments. Additional data centres are also under construction in the country to meet anticipated AI demand.
Operators Must Adapt Networks for AI Workloads
However, Wong cautioned that telecommunications companies must recognise that AI applications impose different requirements from conventional internet traffic.
“AI workloads are much more dynamic, much more sensitive to latency, and the infrastructure is becoming more distributed, so operators have to think beyond simply adding more bandwidth,” Wong said.
He added that an AI-ready operator is one that can deliver more than basic connectivity. “They can provide high-performance networks that can move huge volumes of data quickly, reliably, and predictably between the distributor and compute locations. That is what separates an AI-ready network from a traditional one,” he said.
The growing investment in AI data centre networks across Southeast Asia signals a substantial shift in what telecom operators must deliver, with high-capacity connectivity and network flexibility becoming essential capabilities for those seeking to capture new revenue from the AI ecosystem.