South-east Asian Firms Increased AI Investment Despite Costs
Most regional businesses believe the productivity benefits of artificial intelligence currently outweigh the rising energy demands.
Updated on Oct. 11, 2026 in Artificial Intelligence
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A survey of 514 business leaders in South-east Asia found that 78 per cent expect the benefits of artificial intelligence to outweigh associated energy requirements. Meanwhile, 62 per cent of businesses increased investments in AI or data-driven technologies over the past 12 months.
Why it matters
Companies are driving this adoption despite concerns over infrastructure and electricity costs due to a competitive desire to avoid falling behind on technological trends. This shift highlights a complex trade-off between aggressive digital expansion and existing energy grid reliability.
41 per cent of businesses expect a moderate increase in energy demand while 40 per cent anticipate a significant spike. These figures occur as firms weigh the potential for smaller task-specific models to reduce memory usage and carbon footprints against mounting infrastructure upgrade pressure.
The players
The Business Times Insights
A research and publication arm focused on analyzing business trends and economic developments across the South-east Asian market.
The details
Businesses are exploring methods to mitigate energy footprints by deploying task-specific AI models, which are scaled-down versions of larger systems optimized for particular functions rather than general-purpose tasks. Facilities are also looking to influence grid stability by mobilizing private investment in renewable energy, storage systems, and local distribution infrastructure. However, companies remain concerned about competing for limited energy resources as AI processes become increasingly domestic to their internal operations.
Timeline
62 per cent of businesses increased AI investments over the past 12 months.
The Business Times Insights survey was released on Oct 12, 2026.
The Tech Race
This data captures the current state of enterprise AI integration in South-east Asia as firms attempt to balance modernization with the realities of local energy grid constraints. It marks a critical checkpoint in how companies move from pilot testing to domestic, power-hungry deployment.
Businesses in the region face the dual challenge of escalating electricity bills and the pressure to upgrade legacy infrastructure to support heavier AI workloads. Decision-makers are increasingly looking toward smaller, more efficient models to balance the need for AI utility with operational cost control.
The takeaway
The trend confirms that regional businesses prioritize competitive AI adoption even when facing rising energy costs and infrastructure strain. Monitor future industry reports for shifts in energy efficiency metrics as smaller, specialized AI architectures continue to develop.
Further reading
For more on the evolving enterprise applications of these models, read our analysis in Artificial Intelligence.
Source note: This article includes information reported by The Business Times.
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Do you believe businesses should aggressively adopt artificial intelligence despite the high energy costs involved?
