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Singapore leads the region in maturity but faces critical scaling bottlenecks.

SINGAPORE – Media OutReach Newswire – 15 April 2026 – ST Telemedia Global Data Centres (STT GDC), one of the world’s fastest-growing data centre colocation service providers headquartered in Singapore, today announced the findings of a new regional research study, Mind the Gap: Bridging the AI Infrastructure Readiness Divide, examining how organisations across Asia are progressing from AI ambition to execution. Commissioned by STT GDC with research partner Ecosystm, the study surveyed more than 600 enterprise and digital-native leaders across nine Asian markets: India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Thailand and Vietnam.

High adoption, limited readiness across Asia

The report reveals that AI ambition across Asia is high, with nearly 90% of organisations having embarked on their AI journeys. However, a significant 71% remain in the “Builder” stage of maturity, where initial AI pilots struggle to scale into production environments capable of delivering consistent and measurable return on investment (ROI). In contrast, only 17% of organisations are considered “future ready”, having invested in scalable infrastructure, mature data governance and specialised operational expertise, highlighting a widening readiness gap across the region.

Challenges faced by the Builders

Across Asia, the research identifies a reinforcing cycle that keeps many organisations stuck in pilot mode. AI initiatives are often launched on infrastructure that cannot scale to production, limiting their ability to demonstrate measurable ROI and making it harder to justify further investment in purpose-built, high-density environments. This challenge is compounded by gaps in in-house expertise, with many organisations lacking the specialist operational skills required to manage increasingly complex AI infrastructure at scale.

“Across Asia, organisations are moving quickly from experimentation to implementation, but many are discovering that AI success now depends less on training models and more on foundations,” said Chris Street, Group Chief Revenue Officer of ST Telemedia Global Data Centres. “Without scalable infrastructure and operational readiness in place, it becomes difficult to convert early AI ambition into consistent business value.”

The Sustainability Blind Spot

Despite rising energy and cooling demands driven by AI workloads, sustainability considerations remain secondary for most organisations when evaluating infrastructure options. Although 27% of organisations say ESG goals will actively shape or be central to their future plans, 64% of organisations across Asia continue to prioritise performance or cost, even as power density, thermal efficiency and long‑term total cost of ownership become increasingly critical factors in scaling AI responsibly.

A disconnect between what organisations want and what they need

The study also highlights a persistent disconnect between how organisations evaluate infrastructure partners and the capabilities they actually need to scale AI. Across Asia, organisations continue to prioritise baseline requirements like security and reliability, despite identifying operational expertise, scalability and cost efficiency as their most significant challenges.

Singapore: ahead of the region, but facing a new constraint

These challenges are visible across the region, but they manifest differently in more mature markets. Singapore stands out against the regional baseline with a significantly larger share of organisations having progressed beyond early-stage pilots. While only 17% of organisations across Asia are considered future‑ready, 40% of Singapore organisations have reached the Integrator stage, reflecting stronger early execution and deployment capability.

However, the study also finds that the final step to leadership remains the most difficult. Only 3% of Singapore organisations have reached the “Leader” stage of AI infrastructure maturity, signalling that even in Asia’s most mature AI market, the transition from integration to full leadership remains difficult.

Scaling, not adoption, is now the key challenge

In Singapore, where adoption is more advanced, the constraints have shifted. Limited infrastructure headroom, shortages in specialised operational expertise and continued investment discipline are now emerging as the primary barriers to scaling AI workloads and sustaining leadership.

“For Singapore, AI adoption is relatively mature; the defining challenge now is scaling deployments fast enough to support real‑world demand,” said Mingcheng Lim, Country Head – Singapore, ST Telemedia Global Data Centres. “Whether the country can maintain its lead in the region will depend on whether infrastructure capacity, specialist expertise and investment approaches can evolve at the same pace as AI workloads.”

Sustainability awareness has yet to shape infrastructure choices

In Singapore, regulatory expectations have driven relatively high awareness of sustainability issues. However, sustainability continues to rank among the lowest priorities when organisations evaluate infrastructure providers, highlighting a gap between awareness and action, even as power density, thermal efficiency and long‑term cost efficiency become increasingly important to scaling AI responsibly.

The mismatch between wants and needs persists

As with the wider region, Singapore organisations continue to evaluate infrastructure providers based on familiar baseline criteria, even as their scaling challenges point to a growing need for specialist expertise, speed to scale and sustainable, high‑density infrastructure capability.

These findings suggest that Asia’s next phase of AI progress will be defined not by ambition alone, but by execution capability. For Singapore, sustaining regional leadership will depend on infrastructure strategies that support scale, resilience and speed, enabling organisations to convert early AI momentum into enduring competitive advantage.

To download the report, Mind the Gap: Bridging the AI Infrastructure Readiness Divide, please visit: https://www.sttelemediagdc.com/resources/ai-readiness-assessment-report.Hashtag: #STTelemedia #STTGDC

The issuer is solely responsible for the content of this announcement.

About ST Telemedia Global Data Centres

ST Telemedia Global Data Centres (STT GDC) is one of the fastest-growing data centre providers with a global platform serving as a cornerstone of the digital ecosystem that helps the world to connect. Powering a sustainable digital future, STT GDC operates across Singapore, the UK, Germany, India, Italy, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam, providing businesses an exceptional foundation that is built for their growth anywhere. For more information, visit https://www.sttelemediagdc.com/.

The slowdown matters because overseas sales have been doing much of the heavy lifting for China while the property downturn and soft household spending continue to restrain growth at home. Economists surveyed by Reuters expect the economy to have expanded 4.8 per cent in the first quarter, up from 4.5 per cent in the previous three months, but they also see the outlook dimming as the Middle East conflict pushes up input costs and clouds demand in key markets.

March’s figures suggest that what had looked like a strong start to the year is becoming harder to sustain. Earlier gains had been supported by front-loaded shipments, strong demand for artificial intelligence-linked electronics and a rebound in some advanced manufacturing exports. That mix is now facing a harsher external backdrop. The conflict involving Iran has disturbed energy markets, with the Strait of Hormuz under severe strain and oil prices climbing towards the $100 a barrel mark, a level that raises transport, production and logistics costs across Asia and Europe.

Imports into China, by contrast, jumped 27.8 per cent in March, the strongest increase since late 2021. Part of that rise reflected demand tied to semiconductors, components and technology supply chains, but it also pointed to stockpiling and shifting trade flows as businesses prepared for a more volatile energy and freight environment. The divergence between softer export growth and surging imports may complicate Beijing’s effort to keep its large trade surplus intact through 2026.

Pressure from the Iran conflict is being transmitted through more than one channel. China remains heavily exposed to imported energy, and although it has reserves and a diversified supply base, higher crude and gas costs squeeze manufacturers’ margins and can erode the price competitiveness that has underpinned the country’s export machine. Reuters reported that March also brought the first rise in factory-gate prices in more than three years, indicating that cost pressures are building just as external demand becomes less predictable.

There are also direct trade effects. Reuters reported that crude and natural gas imports fell as the regional conflict disrupted flows. OPEC, in its first formal assessment of the war’s economic effect, cut its forecast for second-quarter global oil demand by 500,000 barrels a day, saying the conflict had become a meaningful drag on consumption and trade. For export-oriented economies such as China, that points to a tougher environment in which customers abroad may curb discretionary spending while producers face steeper energy bills.

Yet the picture is not uniformly bleak. China’s technology and clean-energy manufacturers still have areas of strength that could cushion the blow. Overseas demand for electric vehicles, batteries and solar equipment has been supported by the same oil shock that is hurting traditional exporters. Associated Press reported that Chinese new-energy vehicle exports continued to surge in March, while another AP analysis said the energy crisis was sharpening global interest in Chinese clean-tech supply chains. Those sectors are unlikely to offset every weakness, but they do show that the country’s export story is becoming more uneven rather than simply weaker across the board.

That unevenness is visible across product categories. Lower-value consumer goods such as clothing, furniture and other labour-intensive shipments were hit by seasonal factors and softer foreign demand, while higher-end electrical and AI-linked exports remained more resilient. South Korea’s sharp rise in exports to China, driven by chip demand, underlined the point that advanced technology supply chains are still expanding even as broader goods trade loses pace.

Beijing now faces a familiar policy dilemma made more acute by war. It wants to preserve growth without adding excessive leverage, support exporters without worsening trade tensions, and stabilise domestic demand while avoiding another debt-fuelled property cycle. Current forecasts still place full-year growth within the official 4.5 to 5 per cent target range, but many analysts now expect a weaker second quarter than they did before the Iran crisis deepened. Fiscal support, bond issuance and selective easing remain on the table, though officials appear cautious about deploying a large stimulus immediately.

Sánchez, on his fourth trip to China in four years, arrived with a message that mixed engagement with caution. On the eve of meeting Xi, he told an audience at Tsinghua University that China should assume a larger role in tackling climate change, inequality, global health, responsible artificial intelligence and major conflicts, while also arguing that Europe must step up as the United States pulls back from several fronts. That language reflected Madrid’s attempt to deepen economic relations with Beijing without ignoring the strategic unease that still colours China’s ties with much of the West.

For Xi, Spain offers a politically valuable counterpart inside the European Union. Beijing has been looking for reliable European interlocutors as Brussels tries to defend industrial interests, scrutinise state-backed Chinese investment and manage disputes over electric vehicles and market access. Spain has often sounded less confrontational than some other European capitals. Sánchez has previously urged compromise over tariffs on Chinese-made electric vehicles and has continued to frame China as a strategic partner rather than only a rival. That posture does not place Madrid outside the EU mainstream, but it does make Spain one of the more open major economies for Chinese diplomacy.

Trade remains the hardest fact beneath the warmer language. Sánchez acknowledged in Beijing that China accounts for 74 per cent of Spain’s overall trade deficit, and Reuters reported that Spain’s deficit with China approached $50 billion in 2025 after more than doubling over four years. Madrid wants better access for agricultural and manufactured exports while preserving inward investment that could help its green transition and industrial base. Chinese capital has already been tied to projects in batteries, hydrogen and manufacturing in Spain, underlining why the government sees practical gains in staying engaged even as the imbalance in trade grows harder to ignore.

That commercial logic is colliding with a tougher geopolitical climate. Sánchez’s visit has drawn scrutiny because it comes as China seeks stronger European ties during a period of strain with Washington. Reuters reported before the trip that Sánchez’s independent line on China had already irritated U. S. President Donald Trump, while Spain also rejected sharp U. S. criticism of moves to expand trade with Beijing. Chinese officials, for their part, signalled before the visit that they wanted to use it to deepen strategic trust, cooperation and multilateral coordination. The result is a diplomatic balancing act in which Madrid is trying to protect its autonomy, retain access to both superpowers and avoid being forced into a binary choice.

The political symbolism runs beyond bilateral ties. Sánchez’s stop in Beijing follows a succession of other European leaders visiting China this year, suggesting that even governments wary of Beijing’s security posture and industrial policies still see a need for direct dialogue. China is encouraging that trend, presenting stable relations with Europe as proof that it is not isolated despite mounting tension elsewhere. Spain’s government has echoed part of that argument, with Sánchez saying in Beijing that Europe and China had prospered together before and could do so again. That sentiment fits neatly with Xi’s effort to frame China as a pillar of order against a backdrop of war, protectionism and institutional drift.

The meeting carried weight beyond bilateral symbolism. Qatar is India’s largest supplier of liquefied natural gas and a major source of liquefied petroleum gas, making the Gulf state central to India’s fuel security at a time when shipping risks and production interruptions have tightened markets. New Delhi’s outreach came as it sought assurances on supply after weeks of strain across West Asian energy routes and amid concern over the effect of regional instability on domestic fuel availability and industrial consumption.

Doha’s message was also framed by diplomacy. The official Indian statement said the ministers welcomed the two-week ceasefire agreed on April 8 and underlined the need for an early end to disruption in global energy supplies. It added that Puri conveyed greetings and a message of solidarity from Prime Minister Narendra Modi to Qatar’s leadership, reflecting how the energy relationship is now closely tied to broader strategic engagement covering trade, investment and regional stability.

For India, the stakes are immediate. The country depends on imports for about half of its natural gas needs, and the supply shock has already exposed vulnerabilities in infrastructure and procurement. GAIL’s finance director said this week that the Dabhol LNG terminal in Ratnagiri was operating at less than half its 5 million-tonnes-a-year capacity because of constrained global supplies. Hindustan Petroleum’s Chhara LNG terminal in Gujarat has also faced difficulties after missing two cargoes in March and April that were expected from Qatar via ADNOC Trading.

The background to the Doha talks is a sharp deterioration in regional energy logistics. Reuters reported on April 8 that QatarEnergy was preparing to restart LNG production after attacks in March forced stoppages at facilities in Ras Laffan and Mesaieed. Two of three trains at QELNG North 1 had been restarted, but a full return depended on vessels being able to pass safely through the Strait of Hormuz, one of the world’s most sensitive energy chokepoints. The same disruption has inflated spot prices and increased anxiety among large importers across Asia.

That makes Qatar’s long-term importance to India even clearer. In February 2024, QatarEnergy and Petronet LNG signed their largest single LNG supply agreement, under which Qatar will deliver 7.5 million metric tonnes a year from 2028 to 2048. Reuters reported at the time that Qatar planned to lift LNG liquefaction capacity to 126 million tonnes a year by 2027, up from 77 million, as it sought to strengthen its role in Asian and European markets. The scale of that agreement gives India a measure of stability, but it also underlines how deeply its gas strategy remains linked to a single Gulf supplier.

That dependence has advantages and risks. Qatar has earned a reputation for contractual reliability and remains among the lowest-cost LNG producers in the world, qualities prized by importers facing volatile spot markets. At the same time, the events of March and April have shown that even long-established energy corridors can be shaken by military escalation, damage to infrastructure and pressure on maritime routes. For policymakers in New Delhi, that is likely to sharpen interest in diversification through additional long-term contracts, more storage, broader sourcing and faster domestic gas infrastructure expansion.

India’s longer-term energy ambitions add another layer to the relationship. The government has repeatedly said it wants to raise the share of natural gas in the energy mix to 15 per cent by 2030, from just over 6 per cent at present. That target cannot be met without dependable imported LNG, even as the country pushes renewables, domestic gas output and cleaner urban fuels. Reliable Qatari supply therefore remains integral not only to short-term energy security, but also to India’s broader transition strategy and industrial planning.