Where Will ASEAN's Compute Come From?

**By MECC Research Unit | January 2026**

Context

ASEAN governments are investing in AI R&D, digital services, and smart infrastructure. But few are answering the more fundamental question: where will the compute live?

This report evaluates five ASEAN countries on their ability to host AI-scale compute infrastructure using MECC's Compute Viability Matrix.

---

Compute Viability Matrix (2026)

| Country | Power Surplus | Cooling Advantage | Political Stability | AI Talent Density | Deployment Feasibility | Viability Score | |---------|---------------|-------------------|---------------------|-------------------|------------------------|-----------------| | **Laos** | High | High | Moderate | Low | Fast | 7.2/10 | | **Thailand** | Moderate | Moderate | Stable | Medium | Fast | 8.1/10 | | **Vietnam** | Moderate | Low | Stable | Medium | Moderate | 7.4/10 | | **Indonesia** | Low | Low | Volatile | High | Slow | 6.0/10 | | **Singapore** | Very Low | Very Low | Very Stable | High | Fast | 6.5/10 |

---

Key Findings

**Laos** offers unmatched raw inputs (hydropower, cooling, land) but lacks software layers (talent, services).

**Thailand** is well-positioned but nearing infrastructure ceilings.

**Vietnam** may be ideal for "stage two" capacity if Laos is activated.

---

Strategy Implication

Compute deployment in ASEAN may follow a dual-axis model:

1. **Singapore & Bangkok** = orchestration centers 2. **Laos & Vietnam** = power-fed backends

A hybrid model could mirror the North America model: "Compute in Oregon, AI labs in San Francisco."

---

Recommendation

For governments, investors, and infrastructure partners:

**Shortlist Laos** for early-stage commitments.

**Negotiate MoUs** that lock future power at current rates.

**Support layered ecosystems** in Laos with imported talent, modular clusters, and cooling optimization.

The future of ASEAN AI will be as much about electrons as algorithms.