Developing countries are struggling to achieve their technology aims. Shared digital infrastructure is the answer

The digital era offers remarkable prospects for both economic advancement and social development. Yet for emerging economies lacking energy, this potential often seems out of reach. The harsh truths of inconsistent electricity supply and scarce resources looms large over their digital ambitions. Nevertheless, a ray of hope shines through a strategy I call shared digital infrastructure (SDI). This cooperative model has the ability to turn these obstacles into opportunities for growth. By collaborating through regional country partnerships and bodies such as the Association of Southeast Asian Nations (ASEAN), the African Union (AU) and the Caribbean Community (CARICOM), these countries can harness the revolutionary power of digital technology, despite the challenges.

The digital economy is a critical driver of global GDP, with innovations in artificial intelligence, e-commerce and financial technology transforming industries at an unprecedented pace. At the heart of this transformation are data centres, which serve as the backbone of digital services, cloud computing and AI-driven applications. Yet many developing nations struggle to establish and maintain such facilities due to high energy costs, inadequate grid reliability and limited investment capital.

Without robust digital infrastructure, developing economies risk being excluded from the technological advancements that are reshaping global trade. Businesses in these regions face challenges in accessing cloud computing services, adopting e-government initiatives and scaling digital entrepreneurship. Moreover, the absence of local data centres means increased reliance on foreign entities, raising concerns about data sovereignty, cybersecurity and cost inefficiencies.

Instead of each country attempting to build and sustain independent data centres, SDI presents a sustainable alternative. By pooling resources, a group of countries can develop regional data hubs, shared service facilities and cloud storage centres that serve multiple nations, mitigating the cost burden and energy constraints faced by individual states.

The ASEAN region has already made strides in digital integration, with initiatives such as the ASEAN Digital Masterplan 2025. By expanding these efforts to include shared regional data centres, ASEAN can provide cloud services tailored to the needs of its member states, ensuring that businesses and governments have access to reliable and cost-effective computing power. Additionally, harnessing renewable energy sources, such as hydropower from Laos or geothermal energy from Indonesia, could support the energy-intensive nature of these facilities, reducing reliance on fossil fuels.

Africa’s digital transformation has been hindered by inconsistent internet access and unreliable energy supply. The African Union’s Digital Transformation Strategy highlights the need for digital infrastructure, and a collaborative effort to develop regional data centres could be a game-changer. By strategically locating these facilities in areas with stable energy resources – such as Morocco’s solar energy, Ethiopia’s hydropower or South Africa’s wind farms – the AU can ensure equitable digital access while overcoming energy constraints.

Moreover, SDI would support Africa’s growing fintech ecosystem, enhance trade under the African Continental Free Trade Area (AfCFTA), and enable governments to improve service delivery through e-governance solutions.

For Caribbean nations, digital transformation is a key enabler of economic resilience, particularly in a region highly vulnerable to climate change. CARICOM could drive regional cloud solutions that empower small island states to benefit from advanced computing resources without the high costs associated with individual data centres. Given the region’s limited landmass and exposure to hurricanes, a distributed approach to data storage across multiple nations could enhance security and continuity planning, ensuring data resilience in the face of natural disasters.

A strong digital infrastructure hinges on a reliable and sustainable energy source, particularly for volume-intensive data centres. Nations rich in renewable energy resources have the opportunity to leverage their energy capabilities to sustain digital infrastructure, thereby minimizing operational expenses and carbon emissions. A key obstacle to the growth of data centres in developing countries is the dependability of electricity supply. Given their high energy consumption, data centres necessitate stable power sources for continuous operation. SDIs can tackle this issue by positioning centres in regions with renewable energy opportunities, allowing for the distribution of advantages across various countries.

The Itaipu Dam is one of the largest hydroelectric plants in the world, supplying clean energy to both Brazil and Paraguay. It provides a stable and renewable power source that can support data centres and digital infrastructure.

Grand Ethiopian Renaissance Dam (GERD) is Africa’s largest hydroelectric project and is expected to generate over 6,000 MW of electricity. It can conceivably power Ethiopia’s growing digital economy, support cloud services and attract global tech companies looking for green energy solutions.

The Inga Dam complex, particularly the proposed Grand Inga project, has the potential to be the world’s largest hydroelectric power station, with a potential capacity of over 40,000 MW. This could transform the DRC and neighbouring countries into major data hubs.

Central Asia has immense hydropower potential, with the Nurek Dam in Tajikistan and the Toktogul Reservoir in Kyrgyzstan providing renewable energy. These countries could develop data centres powered by hydroelectricity, tapping into the growing demand for digital services in the region and beyond.

By investing in regional data centres, developing nations can reduce dependence on foreign cloud services, improving digital sovereignty and data security. Countries often face challenges when data is stored in external jurisdictions, as they must navigate complex regulations that may not align with national policies. A regional approach ensures that digital governance is shaped by local stakeholders, fostering economic self-determination.

Furthermore, SDI promotes digital trade. Businesses operating in developing economies often face latency issues and high data transmission costs when accessing cloud services hosted in distant locations. Regional data centres would enhance the performance of digital services, lower costs and encourage local innovation, making emerging markets more competitive on the global stage.

For energy-deprived emerging economies, the path to digital transformation lies in country and regional collaboration. ASEAN, AU, CARICOM and similar entities must lead the way in establishing SDIs, ensuring that no country is left behind in the digital age. Regional data centres and shared service facilities offer a practical and sustainable solution, mitigating the financial and energy constraints that often hinder progress. By working together, developing nations can create a digital ecosystem that fosters trade, innovation and inclusive economic growth.