Southeast Asia’s booming data centre industry is a cornerstone of the region’s digital transformation, spurred by surging digital demands, AI integration, and sustainability imperatives. Landmark investments such as Google’s US$2 billion data centre in Malaysia—poised to generate over 64,000 high-value jobs—underscore the region’s immense potential. Yet, a pressing challenge looms: the tech talent gap is widening at an alarming pace.
The Growing Challenge
By 2025, the global data centre industry will require 2.3 million skilled workers, with Asia set to experience acute shortages, according to the Uptime Institute. This demand outstrips supply across Southeast Asia, where existing education systems and talent pipelines struggle to keep up. Malaysia, for instance, produces only 5,000 engineers annually despite a need for 50,000 skilled professionals in its burgeoning semiconductor sector alone.
The issue is compounded by brain drain, particularly in Malaysia, where approximately 1.8 million citizens have migrated overseas, 60% of whom reside in Singapore. With its competitive salaries and advanced infrastructure, Singapore has become a magnet for skilled professionals, leaving countries like Malaysia scrambling to retain and upskill talent.
Addressing Talent Shortages
Systemic reforms are essential to bridge this talent gap. Governments and industry players must work together to develop a steady talent pipeline. Initiatives like the Malaysian Digital Economy Corporation’s partnership with Amazon Web Services to train 25,000 students are a step in the right direction, but more must be done.
The Chief Minister of Johor recently called for equitable benchmarking of salaries highlighting the need for competitive pay and comprehensive benefits to retain talent locally. Companies must also rethink their approach to employee benefits, moving away from generic offerings to personalised packages that reflect individual needs. According to Robert Walters, 57% of Southeast Asian tech professionals would accept smaller salary increments in exchange for tailored benefits—a key insight for companies aiming to attract and retain top talent.
Singapore’s proactive workforce planning offers a blueprint for the region. Its Job Transformation Maps (JTMs) guide businesses in navigating workforce changes, enabling them to plan for technology-driven transformations. Emulating such initiatives could help Southeast Asian nations address skills blind spots and prepare their workforce for the future.
Future Workforce Trends
As talent shortages persist, the role of automation and advanced technologies becomes critical. Innovations like Iceotope’s Precision Liquid Cooling, which improves efficiency while reducing environmental impact, are reshaping the industry. Precision Liquid Cooling, a solution for cooling high-performance computing systems, circulates dielectric fluid directly around IT equipment. This results in almost 100% heat removal and energy consumption reduction by up to 40%. The innovative cooling method has been recognized as a reliable solution for managing substantial heat generated by AI workloads. These solutions not only optimise operational workloads but also make the sector more appealing by aligning with sustainability goals—an increasingly important factor for younger workers.
By integrating these technologies and fostering robust upskilling initiatives, Southeast Asia’s data centre industry can navigate its talent challenges while securing its position as a global digital infrastructure hub. Failure to act swiftly, however, risks stalling the region’s digital transformation and squandering its billion-dollar growth opportunities.
The path forward is clear: systemic reforms, innovative solutions, and strategic collaborations are essential to building a workforce capable of sustaining the region’s digital ambitions.
About the author
Jason Low is a seasoned sales leader with over 20 years of experience driving technology adoption and business growth across Southeast Asia. Currently serving as the Director of Sales for Asia Pacific at Iceotope Technologies, Jason plays a pivotal role in advancing innovative data center solutions. His work focuses on integrating sustainable cooling technologies and high-performance computing infrastructure, helping enterprises optimize their operations while reducing environmental impact.
