Bengaluru: Southeast Asia Data Centres are witnessing a sharp acceleration in equity funding, with companies across the region raising approximately $11.5 billion through 19 disclosed rounds, according to a new report from Tracxn.
Around 85% of the total capital has been raised since the beginning of 2024, highlighting the rapid expansion of the region’s data centre infrastructure market.
Tracxn, a global market intelligence platform for private company data, released The Infrastructure Shift: Southeast Asia’s Data Centres in August 2026.
The ecosystem snapshot examines capital, companies and exits across the region’s data centre sector, using data available as of August 25, 2026.
The report describes a market that has expanded rapidly rather than gradually.
Southeast Asia Data Centres companies raised approximately $11.5 billion in disclosed equity funding across 19 rounds, with roughly 85% of that capital arriving since the start of 2024.
The period has coincided with growing AI demand and changes in infrastructure requirements across the region. Funding is also highly concentrated, with the five most-funded companies accounting for approximately 98% of total equity funding.
The report noted that the capital backing Southeast Asia Data Centres is largely institutional in nature, with investments coming from sovereign wealth funds, pension capital, infrastructure firms and crossover growth investors.
Southeast Asia Data Centres Funding Accelerates
The funding history of Southeast Asia Data Centres remains relatively short but has expanded sharply in recent years.
Between 2020 and 2023, companies in the region’s data centre sector raised a combined $1.68 billion in disclosed equity funding. Since then, annual funding levels have increased substantially.
The sector raised $3.2 billion in 2024, followed by $1.9 billion in 2025. In 2026 year-to-date, funding has already reached $4.7 billion, making it the largest funding year on record.
The $4.7 billion raised in 2026 year-to-date has already exceeded the combined disclosed funding total for the 2020–2023 period. Similarly, the $1.9 billion raised in 2025 surpassed the entire four-year total recorded between 2020 and 2023.
The funding surge in Southeast Asia Data Centres has been driven by a limited number of large transactions.
KKR’s $806 million investment in Nxera accounted for nearly all of the sector’s funding total in 2023.
In 2024, DayOne’s first two funding rounds raised $1.9 billion, while a KKR-Singtel consortium invested $1.3 billion in ST Telemedia GDC.
Stonepeak’s $1.3 billion preferred equity investment represented roughly two-thirds of the sector’s funding in 2025. Meanwhile, DayOne’s $4.5 billion Series C accounted for approximately 96% of the sector’s 2026 year-to-date funding.
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Singapore Emerges as Funding Hub
Singapore plays a central role in the financing of Southeast Asia Data Centres, with all five of the region’s most-funded companies headquartered in the city-state.
DayOne has raised approximately $6.4 billion, followed by Princeton Digital Group with $2.2 billion, ST Telemedia GDC with $1.3 billion, Nxera with $806 million and Digital Edge with $640 million.
Together, these five companies account for approximately 98% of the sector’s total equity funding.
The concentration in Singapore reflects the location of corporate and financing headquarters, while actual data centre deployment extends across the broader Southeast Asian region.
For Southeast Asia Data Centres, Singapore therefore functions as a key financing domicile even as companies develop and operate facilities in multiple markets.
DayOne has committed more than RM28 billion, or approximately $7 billion, to Malaysia by the end of 2026. The company is also developing a 72MW campus in Batam, Indonesia, through a joint venture with the Indonesia Investment Authority.
Princeton Digital Group operates a portfolio exceeding 1.1GW across six markets. Digital Edge has operations spanning Japan, Korea, India, Malaysia, Indonesia and the Philippines.
The deployment pattern demonstrates the regional reach of Southeast Asia Data Centres, despite the concentration of major funding headquarters in Singapore.
Acquisitions Increase Across Southeast Asia Data Centres
Four acquisitions have been recorded in the sector, with financial or infrastructure investors acting as buyers in every transaction.
The investors involved include the KKR-Singtel consortium, Partners Group, DigitalBridge and Keppel DC REIT. The transactions provide these investors with exposure to Southeast Asian digital infrastructure.
The pace of acquisitions has also accelerated. The gap between successive deals has shortened from approximately four and a half years to nine months.
The two most recent transactions occurred within the same period as some of the largest funding rounds in Southeast Asia Data Centres.
One of the most significant transactions involved ST Telemedia GDC. An 18.3% stake was acquired in June 2024, followed 20 months later by the purchase of the remaining 82% at an enterprise value of S$13.8 billion.
Three of the four acquisition targets are headquartered in Singapore, further highlighting the country’s role within the region’s digital infrastructure investment ecosystem.
Southeast Asia Data Centres See First Public Listing
Public market activity remains limited across Southeast Asia Data Centres.
Elitery, an Indonesian colocation and managed services provider, has been listed on the Indonesia Stock Exchange since January 2023. It listed at a market capitalization of $16 million, becoming the sector’s first and, to date, only public listing.
The market is now awaiting the potential listing of DayOne. The company has confidentially filed for a US IPO, according to a report in August 2026.
DayOne is reportedly considering raising approximately $5 billion at a valuation of roughly $20 billion, the same valuation at which its June 2026 Series C was completed.
A completed DayOne listing would provide Southeast Asia Data Centres with its first large-scale public market price reference.
Southeast Asia Data Centres Attract Infrastructure-Style Capital
The investor profile across the sector highlights the infrastructure characteristics of Southeast Asia Data Centres.
Sovereign and state-linked investors, including the Indonesia Investment Authority, Mubadala and Temasek, have positions across the top five companies.
Pension capital is represented by Ontario Teachers’ Pension Plan, while infrastructure and private equity investors include KKR, Stonepeak, Brookfield Asset Management and Warburg Pincus.
Crossover growth investors such as Coatue, Hillhouse and SoftBank Vision Fund are also represented among investors in the leading companies.
Once a data centre becomes operational and generates revenue through long-term leases with hyperscale tenants, its cash flows become more predictable and contracted. This profile supports the use of long-tenor debt alongside equity funding.
Debt Funding Adds to Southeast Asia Data Centres Capital Base
While the Tracxn report focuses on equity funding, debt has also become an important component of financing for Southeast Asia Data Centres companies.
Princeton Digital Group’s 2025 capital raise was divided between $1.3 billion of equity and $1.2 billion of debt. The company announced plans in March 2026 to raise up to $5 billion in debt, including a $750 million sustainability-linked facility.
Digital Edge complemented its $640 million equity round with $1 billion of debt.
DayOne is also reported to be seeking to expand an existing $3.4 billion loan facility to as much as $7 billion.
Although debt is excluded from Tracxn’s reported equity funding totals, its presence alongside large equity transactions illustrates the scale of capital being deployed into Southeast Asia Data Centres.
The sector has consequently moved from relatively limited funding activity during 2020–2023 to a significantly larger capital market, with 2026 already establishing a new annual funding record on a year-to-date basis.
