How will the US tariffs impact data centres in Southeast Asia?

How will the US tariffs impact data centre developments in Southeast Asia? It's impossible to predict with certainty, but here are two possible scenarios.

In the past few days, the news cycle has been dominated by reports on the impact of the punitive and wide-ranging tariffs the US plans to impose.

With Asia bearing the brunt of the tariff hikes, what could be the likely impact on data centre developments in the region?

Possibility 1: Massive slowdown

There's plenty of anecdotal evidence that China's tech giants are driving a substantial portion of data centre growth in Southeast Asia.

Assuming a cycle of tit for tat tariffs, it's likely that China's economy will take a massive hit, potentially causing funding to dry up.

This may lead to construction delays or the suspension of upcoming development phases for data centres here.

Possibility 2: Growth opportunity

Another view is that this could lead to a boom in data centre in Southeast Asia, notwithstanding the broader economic repercussions.

The thinking goes like this:

• Equipment might become cheaper in a weak market.
• Some US workloads could shift abroad due to cost.
• Data centres represent long-term strategy.

Finally, Southeast Asia need more data centre capacity to serve its population anyway, and that's before taking potential future demand for AI into consideration.

Both: Change in slow motion

Regardless of how the situation pan out, it is unlikely that any repercussions will happen immediately.

✅ Operators already building will continue.
✅ Operators that have launched will keep on selling.
✅ Operators mulling options will still apply for permits.
❌ Operators still raising funds might experience delays.

Personally, I see the tariffs as a form of political brinkmanship aimed at forcing a renegotiation of terms, though its effects on global trade and economic stability will be significant.

What are your thoughts on this?