Leadership and Companies
Southeast Asia’s Digital Economy Reaches $368 Billion as AI Accelerates Growth
Southeast Asia’s digital economy is projected to reach $368 billion in 2026, driven by rapid generative AI adoption.
What happened
Google, Temasek and Bain’s 2026 e-Conomy SEA report projects the region’s digital economy will grow 17% year-on-year to $368 billion in gross merchandise value in 2026, putting it on track to exceed $1 trillion by 2035. Generative AI is already used by 243 million people, or 58% of the working population, and is spreading four times faster than mobile internet.
Why it matters
Businesses face rising demand for AI-enabled services and infrastructure. Supporting the projected growth will require data-centre capacity to expand roughly threefold over the next five years, alongside stronger energy efficiency and regional digital-trade rules.
Source: Google Blog