​The Hidden Data Centre Skills Gap in Southeast Asia: What's Really Happening?

Just as icebergs conceal their true mass beneath the surface, Southeast Asia's spectacular data centre boom masks a dangerous reality lurking below. The numbers tell an impressive story: market value set to more than double from USD 13.71 billion in 2024 to USD 30.47 billion by 2030, expanding at a robust CAGR of 14.23%. Yet beneath this remarkable growth lies a skills crisis that could derail the region's digital ambitions entirely.

Recent industry assessments reveal a severe shortage of qualified professionals across critical data centre roles—facility managers, cloud engineers, network specialists, and technical sales leads remain frustratingly difficult to recruit. This talent drought arrives at precisely the wrong moment, coinciding with artificial intelligence's explosive growth and its voracious appetite for computing resources throughout the region.

The technical landscape itself adds another layer of complexity. Today's data centre racks across Southeast Asia typically handle between three and ten kilovolt-amperes. Tomorrow's AI-enabled infrastructure? It may demand rack densities as high as 30-50 kVAs. Meanwhile, data centre capacity across the broader Asia Pacific region is projected to double to approximately 30GW by 2027/2028, yet a supply shortage of around 15-25GW looms on the horizon.

Employers have certainly noticed this brewing storm. Some 60% of organisations worry that skills gaps will hamper their ability to prepare for the changing business landscape. An overwhelming 96% recognise the need to invest in improving their workforce capabilities—well above the global average of 85%. With 62 out of every 100 workers in South-Eastern Asia expected to require training by 2030, understanding the true nature of this skills gap has become more than crucial—it's become urgent.

The Growing Demand for Data Centre Talent in Southeast Asia

The confluence of geography, economics, and technology has created perfect conditions for Southeast Asia's data centre explosion. USD 30.47 billion by 2030, expanding at a CAGR of 14.24% - these figures reflect not just growth, but a fundamental shift in how the region positions itself within the global digital economy.

Why SEA is Becoming a Data Centre Hotspot

Geography has always been destiny in trade, and Southeast Asia's strategic position as a digital bridge between East and West makes it indispensable for global data exchange. Yet location alone doesn't explain the surge. Construction and operational costs in ASEAN countries average 20% lower than global benchmarks, with Malaysia and Indonesia offering particularly compelling economics for operators seeking efficiency without sacrificing capability.

Government vision has proven equally decisive. Malaysia's Digital Economy Blueprint, Singapore's Digital Economy Partnership Agreement, and Indonesia's Making Indonesia 4.0 strategy represent more than policy documents - they signal coordinated national commitment to digital infrastructure. These initiatives come with tangible support: tax benefits and simplified permit processes that make complex projects feasible where they might otherwise stall.

The Role of AI and Cloud in Accelerating Demand

Artificial intelligence has rewritten the rulebook for data centre planning across Southeast Asia. The technology has triggered what industry observers describe as a fresh wave of growth, with AI workloads projected to comprise 15-20% of total workloads by 2028. This shift coincides with cloud spending from regional businesses expected to increase by 33% year-over-year by 2026.

The power implications are staggering. AI-optimised data centres demand significantly higher energy inputs than their predecessors, with electricity consumption from these facilities projected to more than quadruple by 2030. This exponential increase necessitates substantial investments in grid infrastructure - investments that many countries are scrambling to plan and finance.

How Localisation is Shifting Hiring Needs

The days of Singapore-centric data centre operations are fading. The regional landscape now embraces a distributed model encompassing emerging markets like Indonesia, Malaysia, and Thailand. This geographic expansion creates demand for professionals who combine technical expertise with country-specific knowledge and cultural fluency.

Localisation specialists face expanding responsibilities that extend far beyond language translation. These professionals must oversee quality assurance, product testing, and cultural adaptation of technologies. The role increasingly demands hybrid technical capabilities spanning cloud engineering, network infrastructure, and sustainability expertise - a combination that creates unique challenges in talent acquisition and development across the region.

Where the skills gap is most visible

The data centre industry across Southeast Asia faces staffing challenges that could derail the region's digital transformation. More than half of operators report difficulties finding qualified candidates for open positions, whilst 42% struggle with retaining their existing workforce. These challenges manifest most clearly in specific areas of acute shortage.

Shortage of hybrid technical roles

The most severe talent shortages exist in roles demanding cross-functional expertise. Positions combining cloud computing, networking, and sustainability knowledge remain exceptionally scarce. This shortage hits hardest for IT technicians and workers trained in cloud computing and AI applications. Facility managers, cloud engineers, network security specialists, project managers, and technical sales leads—roles requiring hybrid expertise—have become increasingly elusive. As technologies evolve at breakneck speed, the specific skillsets in short supply shift rapidly, leaving workforce planners perpetually scrambling.

Lack of green infrastructure expertise

Professionals who understand both the technical aspects of data centre operations and the environmental considerations of energy use are critically scarce. Sustainability has moved from peripheral concern to operational imperative, blurring the boundaries between IT, energy, and engineering roles. Expertise in energy-efficient designs and ESG-compliant infrastructure represents a significant talent market gap. This shortage arrives precisely when data centres face mounting pressure to improve environmental performance.

Underdeveloped talent pipelines in tier-two cities

Emerging markets such as the Philippines, Taiwan, and Malaysia face particularly acute shortages, with their data centre industries still in early development. Recruiting in tier-two cities presents distinct challenges—smaller population centres mean limited candidate pools. Each unfilled position creates a ripple effect: direct revenue losses compound with indirect costs from diminished morale and stifled innovation. Yet tier-two cities offer compelling advantages, including 20-30% lower attrition rates compared to major hubs.

Insights from recent skills gap reports

Industry assessments reveal concerning trends. Uptime Institute data shows the global data centre workforce needs to grow from 2 million to 2.3 million by 2025. Currently, 58% of operators struggle to fill critical roles. The gap continues widening, with every new data centre requiring at least 25 engineers—creating thousands of job openings quarterly. However, establishing sophisticated training centres in smaller markets remains economically challenging, as standard 12MW sites typically need teams of just 20-22 people.

What Top Talent is Really Looking For

Money talks, but apparently it doesn't say enough. The 2025 Data Centre Salary Survey reveals a striking reality: a third of professionals who received pay rises still plan to leave their companies within twelve months. This finding challenges the industry's traditional approach to talent retention and suggests that compensation alone cannot solve the skills crisis.

Beyond Salary: Growth and Innovation

The most talented professionals crave more than a generous pay packet. They report feeling disconnected when facing limited recognition, unclear promotion pathways, and increasing burnout from growing workloads. Research indicates that individuals viewing their work as a calling rather than merely a job experience greater fulfilment. The emerging generation of data centre talent particularly seeks roles aligned with their values on sustainability, equity, and social responsibility.

If you're struggling to understand why well-paid employees still leave, consider this: career stagnation breeds discontent faster than financial rewards can cure it.

The Appeal of Complex, Cross-Functional Projects

Studies show that 73% of employees leave because they don't see growth opportunities. This statistic becomes more meaningful when viewed alongside successful retention strategies. Organisations that implement changes allowing staff to experiment with new technologies and develop relevant skills have achieved retention rates as high as 91%. Companies offering trust and autonomy alongside clear expectations typically see stronger internal referrals—a crucial indicator of employee satisfaction.

The pattern is clear: challenge breeds loyalty.

Importance of Employer Branding and EVP

An effective Employee Value Proposition (EVP) can enhance new hire commitment by 30% and reduce turnover by 69%. Yet currently, only 31% of employees believe their organisation offers a unique experience. This disconnect represents a significant opportunity for data centre operators willing to invest in their employer brand.

Businesses actively tracking employee experience note 23% higher engagement, 21% greater productivity, and 24% lower turnover rates. A powerful employer brand generates 50% more qualified applicants, addressing the skills gap through improved recruitment efficiency rather than simply competing on salary alone.

The message for Southeast Asian data centre operators could hardly be clearer: whilst competitive compensation remains important, it represents just one element of a successful talent strategy.

Closing the Skills Gap: From Crisis to Opportunity

Smart companies across Southeast Asia have recognised that conventional recruitment methods alone cannot solve the talent crisis. The most effective organisations are building sustainable talent ecosystems rather than merely plugging immediate holes in their workforce.

The Power of Internal Development

Existing staff represent the most underutilised resource in addressing skill shortages. Companies are increasingly upskilling their teams in emerging technologies including cloud integration, cybersecurity, and energy management. This approach ensures talent remains aligned with rapidly evolving industry innovations whilst reducing recruitment costs significantly.

The shift towards skills-focused planning has accelerated dramatically, with 81% of employers using skills-based hiring in 2024 (up from 56% in 2023). Through structured learning programmes, organisations can equip professionals to stay ahead of emerging trends whilst simultaneously addressing critical skill shortages. The results speak for themselves: businesses that invest in internal development report higher retention rates and stronger employee engagement.

Educational Partnerships: A Strategic Investment

The most successful talent development initiatives involve educational collaboration. NTT DATA's partnership with Brooks 6th Form produced remarkable results—all six work placement students applied to their apprenticeship programme, demonstrating the mutual benefits of such initiatives. Similarly, Kao Data launched an educational initiative targeting primary schools to address the industry's critical talent shortage, with global staffing needs already nearing the 2.3 million roles forecasted.

These partnerships ensure curricula align with industry needs, creating vital talent pipelines that extend far beyond immediate hiring requirements. The investment in education today will determine the workforce quality of tomorrow.

Adapting to Modern Work Expectations

Traditional hiring strategies require fundamental recalibration. Organisations must evaluate their processes, culture, and employee experience to attract the right talent. With less than 10% of employees favouring working on-site full time, offering hybrid or remote options for certain roles can dramatically expand candidate pools.

Employee expectations have evolved significantly. Some 85% of employees want additional perks and benefits beyond what their employer currently offers, necessitating comprehensive packages that include career progression and mentorship opportunities. Companies that fail to adapt will find themselves increasingly disadvantaged in the talent market.

Regional Mobility as a Competitive Advantage

Cross-border talent mobility has become essential in addressing localised shortages. Companies implementing flexible schemes that meet people's needs at every life stage report improved retention. Regional programmes offer particular advantages in Southeast Asia's diverse market landscape.

Offering relocation support and creating structured pathways for employees to grow within organisations builds loyalty among highly skilled professionals. These programmes enable businesses to deploy expertise where most needed across the region, turning geographic diversity from a challenge into a strategic asset.

Conclusion

Southeast Asia's data centre industry finds itself in a position reminiscent of Henry Ford's manufacturing dilemma: you can have any colour growth you like, but it must be powered by skilled people. The region stands at a critical juncture where extraordinary market potential meets an equally extraordinary talent challenge.

The skills shortage cuts across multiple dimensions. Hybrid technical roles that blend cloud computing, networking, and sustainability expertise remain the scarcest commodity. Green infrastructure specialists are in critically short supply just as environmental performance becomes non-negotiable. Tier-two cities present a curious paradox—offering superior retention rates yet struggling with limited talent pipelines.

Traditional approaches to talent acquisition have proven insufficient. The revelation that a third of professionals receiving pay rises still plan to leave within twelve months exposes the limitations of salary-focused strategies. Today's data centre professionals seek meaning, growth opportunities, and values alignment alongside fair compensation.

The solution requires a fundamental shift in thinking. Forward-thinking companies are already moving beyond conventional recruitment towards building sustainable talent ecosystems. Educational partnerships, skills-based hiring approaches, and regional mobility programmes represent the new frontier of workforce development. The evidence suggests this approach works: NTT DATA's collaboration with educational providers achieved 100% apprenticeship application rates from placement students.

The stakes could not be higher. Southeast Asia possesses all the strategic advantages for data centre success—prime location, cost benefits, and supportive government policies. Yet the human element remains the crucial variable that will determine whether the region fulfils its digital infrastructure potential or finds its ambitions constrained by workforce limitations.

Those who address the skills gap proactively will secure significant competitive advantages in a market projected to reach USD 30.47 billion by 2030. The question facing industry leaders is not whether to act, but how quickly they can adapt their talent strategies to match the pace of technological change. The region's digital future depends on getting this equation right.

Talk to an Expert

Whether you’re scaling hyperscale facilities across Malaysia, launching an edge deployment in Indonesia, or strengthening your operations team in Singapore, the right people will determine your success. TGRC has been supporting data centre developers, operators, and investors across APAC for over a decade — connecting businesses with the cross-functional talent that keeps mission-critical infrastructure running.

If you’d like to discuss your upcoming hiring plans or benchmark your EVP against regional trends, reach out to Nic Yates (n.yates@tgrcinc.com), our specialist in Data Centre recruitment for Southeast Asia.

Key Takeaways

Southeast Asia's data centre boom faces a critical talent shortage that could derail the region's digital transformation ambitions. Here are the essential insights every industry stakeholder needs to understand:

• The skills gap is multifaceted: Shortages are most severe in hybrid technical roles combining cloud, networking, and sustainability expertise, with 58% of operators struggling to fill critical positions.

• Traditional recruitment strategies are failing: A third of professionals who received pay rises still plan to leave within 12 months, proving that salary alone cannot solve retention challenges.

• Tier-two cities offer untapped potential: Despite recruitment challenges, emerging markets like Malaysia and Indonesia provide 20-30% lower attrition rates compared to major hubs.

• Education partnerships drive results: Companies collaborating with educational providers see remarkable success, with initiatives like NTT DATA achieving 100% apprenticeship application rates from placement students.

• Skills-based hiring is accelerating: 81% of employers now use skills-focused recruitment (up from 56% in 2023), moving away from traditional job-based planning towards fluid, adaptable workforce strategies.

The region's data centre industry must shift from short-term recruitment fixes to building sustainable talent ecosystems through upskilling, educational partnerships, and regional mobility programmes. Success requires addressing both technical skill shortages and evolving employee expectations around growth, innovation, and values alignment.

FAQs

Q1. What is driving the growth of data centres in Southeast Asia? Southeast Asia is becoming a data centre hotspot due to its strategic location, lower operational costs, and supportive government policies. The region's data centre market is projected to reach USD 30.47 billion by 2030, growing at a CAGR of 14.23%.

Q2. Where is the data centre skills gap most evident in Southeast Asia? The skills gap is most visible in hybrid technical roles that require cross-functional expertise, such as cloud computing, networking, and sustainability. There's also a significant shortage of professionals with green infrastructure expertise and a lack of talent pipelines in tier-two cities.

Q3. What are data centre professionals looking for beyond salary? Top talent in the data centre industry seeks opportunities for growth and innovation, complex cross-functional projects, and employers with strong values alignment. They also prioritise clear career progression pathways and roles that offer meaning and development alongside fair compensation.

Q4. How can companies address the data centre skills shortage in Southeast Asia? Companies can close the skills gap by investing in upskilling and reskilling programmes, partnering with education providers, rethinking hiring strategies for emerging roles, and creating regional talent mobility programmes. These approaches focus on building sustainable talent ecosystems rather than just filling immediate vacancies.

Q5. What is the impact of AI on data centre demand in Southeast Asia? AI is significantly accelerating demand for data centres in Southeast Asia. AI workloads are projected to comprise 15-20% of total workloads by 2028, leading to increased power demands and the need for substantial investments in grid infrastructure. This technological transformation is intensifying the need for specialised talent in the region.