Cambodia and the data centre question: Let’s be honest about what we’re actually selling

Can Cambodia become a data centre hub or is the opportunity better suited to its wealthier neighbours? Khmer Times illustration

#opinion

A friend who works in information technology in Phnom Penh recently joked that Cambodia’s next major export might not be garments or rice, but heat – the kind generated by endless rows of servers inside data centres.

It was a joke, but it raised a serious question. As Southeast Asia races to attract billions of dollars in digital infrastructure investment, can Cambodia realistically become a data centre hub, or are we chasing an opportunity better suited to wealthier neighbours?

The answer is neither a confident yes nor a dismissive no. Cambodia has genuine advantages. But it also faces structural weaknesses that are too often overlooked in the excitement surrounding the digital economy.

Before declaring ourselves the region’s next technology destination, we need an honest assessment of what we are actually selling.

Data centres rarely capture public attention, yet they have become one of the world’s most strategic forms of infrastructure. Every online payment, cloud application, artificial intelligence model and government digital service ultimately depends on secure facilities that store and process data.

Notably, data is becoming what oil was to the industrial age: a strategic resource that shapes economic competitiveness and national security.

The global demand is enormous. Artificial intelligence, cloud computing and digital services are driving unprecedented investment in data centres across Asia.

Singapore, Malaysia and Indonesia are attracting billions of dollars from technology giants seeking reliable locations for regional operations. Cambodia naturally wants to be part of this transformation.

The country’s strongest advantage is energy.

Cambodia’s electricity generation capacity has expanded rapidly in recent years, with major investments in hydropower, solar energy and battery storage. The government aims to source 70% of electricity from renewable energy by 2030. For an industry where electricity represents one of the largest operating costs, abundant and increasingly clean power is a significant competitive asset.

Ironically, Cambodia may soon export part of this advantage. Singapore has already approved the conditional import of low-carbon electricity from Cambodia to support its own growing data centre industry. That should prompt an important question. If Cambodian electricity is competitive enough to power Singapore’s data centres, why shouldn’t more data centres be built in Cambodia instead?

Because electricity alone is not enough.

Reliable data centres require an ecosystem, not simply cheap power. They need resilient telecommunications networks, redundant international fibre connections, stable regulation, cybersecurity, predictable governance and highly skilled engineers capable of maintaining uninterrupted operations around the clock.

This is where Cambodia’s challenges become more apparent.

Water, surprisingly, is one of them.

Modern data centres generate enormous amounts of heat, and cooling systems remain essential for maintaining performance and reliability. Although Cambodia is blessed with abundant rivers during the rainy season, seasonal water scarcity remains a reality in many parts of the country.

Future facilities will need to adopt advanced cooling technologies that minimise water consumption while improving energy efficiency. Sustainability can no longer be treated as an afterthought.

The larger challenge, however, is human capital.

Buildings can be constructed within a few years. Skilled professionals cannot.

Cambodia’s digital workforce remains relatively small, particularly in specialised fields such as data centre operations, cloud computing, cybersecurity and artificial intelligence.

While the country has many talented young graduates, experienced engineers capable of managing Tier III and Tier IV facilities remain in short supply.

This gap deserves far greater attention than it currently receives. The most valuable investment in Cambodia’s digital future is not another server building but the engineers, cybersecurity specialists, data scientists and network architects who will operate it.

Universities, vocational institutions and industry must work together to develop these skills at scale. Without talent, physical infrastructure becomes little more than expensive real estate.

Encouragingly, Cambodia is not starting from zero.

The government’s investment in a national Tier IV data centre demonstrates long-term commitment to digital transformation. Private operators have begun establishing commercial facilities with international certification, while partnerships with global technology companies are helping strengthen technical training and digital capabilities.

These are important foundations. They deserve continued support because they build capability rather than simply generating headlines.

Cambodia should also be realistic about where it can compete.

It is unlikely to rival Singapore, Johor or Batam as Southeast Asia’s next hyperscale data centre destination in the foreseeable future. Global cloud providers prioritize mature legal frameworks, highly reliable electricity grids, multiple international fiber routes and decades of operational experience.

Data governance and regulatory predictability also weigh heavily in investment decisions.

That does not mean Cambodia should abandon its ambitions. It means refining them.

A more achievable strategy is to become a trusted regional provider of edge computing and colocation services, supporting Cambodian banks, telecommunications companies, government agencies and businesses that increasingly require secure, low-latency domestic data storage.

Cambodia can also position itself as complementary capacity for neighboring markets experiencing rapid growth.

This approach would deliver more immediate benefits to the domestic economy while creating the skilled workforce and institutional experience necessary for larger investments in the future.

The digital economy is not built by constructing impressive buildings alone. It is built through institutions, talent, regulation and trust.

Data has become the world’s new strategic resource, and data centres are the critical infrastructure that powers modern economies.

Cambodia has an opportunity to participate in this transformation, but success will depend less on marketing slogans than on sustained investments in human capital, cybersecurity, regulatory quality and digital governance.

The real question is not whether Cambodia can build more data centres.

It is whether Cambodia can build the knowledge, institutions and confidence that make those data centres worth building in the first place. That is the investment that will determine whether the country’s digital ambitions become reality or remain merely another promising headline.

-Khmer Times-