Geopolitical tensions, ROI demands drive network consolidation, greenfield builds, hybrid clouds in Vietnam, India, Malaysia.
As 2026 approaches, the Asia Pacific region’s digital economy is entering a phase of disciplined recalibration. After years of aggressive cloud migration and experimental AI deployment, enterprises across the region appear to be shifting from expansion to consolidation — from rapid globalization to a renewed focus on local control, resilience, and regulatory alignment.
As geopolitical pressures and regulatory fragmentation increase, enterprises will likely shift focus from simple cost optimization to securing mission critical stability in new markets.
Next year, the “China Plus One” strategy and the demand for tangible AI returns on investments (ROI) will force enterprises to reckon with their infrastructure foundations. Success will no longer depend just on expansion, but on the ability to consolidate fragmented networks and navigate an increasingly complex web of local data regulations.
Key drivers shaping APAC technology landscape
We predict the following trends shifting priorities for CIOs and enterprise leaders, as they navigate the region’s evolving digital geography in 2026:
- The “China Plus One” paradigm shifts spending to greenfield deployment: Accelerated by geopolitical pressures and trade tariffs, multinationals are aggressively diversifying supply chains into markets like Vietnam, Malaysia, and India. In 2026, this will trigger a massive wave of greenfield network demand. Unlike in mature markets, the priority in these emerging hubs will shift from cost cutting to securing stable, high-performance connectivity for mission-critical operations.
- AI ambitions face a “back-to-basics” reckoning: While the C-suite demands tangible ROI from AI, many enterprises are finding their strategies stalled by legacy infrastructure and fragmented networks. Next year, AI will become the primary business case for network consolidation. CIOs will be pressured to unify disparate networks to create the consistent, observable foundation required to scale AI from pilot programs to business-wide advantages.
- Data sovereignty ends the “one-size-fits-all” cloud strategy: As enterprises move mission-critical applications to the cloud, they face regulatory roadblocks that threaten “global-first” transformation projects. With strictly enforced regulations, such as India’s DPDPA and Vietnam’s PDPL — enterprises will be nudged towards geographical data localization. This will require the adoption of hybrid, in-country architectures, intentionally fragmenting global IT footprints to ensure compliance.
Building enterprise resilience for 2026
Enterprises will need a strategic overhaul of digital infrastructure to handle fragmentation and compliance predicted for next year. In this evolving landscape, businesses will need to consider:
- Secure multi-layered connectivity in emerging hubs: To mitigate the risks of physical cable unreliability in markets like Vietnam, enterprises must manage a complex blend of last-mile technologies. Integrating fiber, 5G, and satellite connectivity will be essential to guarantee uptime and protect revenue in these new manufacturing centers.
- Prioritize network consolidation for AI readiness: CIOs must prioritize building a controllable network foundation. Those that unify their locally managed, fragmented networks will be the few capable of successfully deploying AI at scale.
- Collaborate to enhance regulatory navigation: Failure to comply with local data laws is now a direct barrier to market access. Organizations will need to establish partnerships with providers that can navigate the regulatory intricacies of specific markets, ensuring that geography-appropriate data localization strategies do not derail global operations.
Connectivity in 2026 is about resilience in the face of fragmentation. We have reached a point where compliance dictates architecture. A business can no longer prioritize cloud features; it must prioritize where its infrastructure physically lives.
The winning question is no longer “which cloud?” but “which country?”