Governments risk building obsolete data centre infrastructure, warns Oxford economist

Governments across the region pursuing aggressive strategies to establish data centre hubs and critical minerals industries may be setting themselves up for costly infrastructure failures, warns Oxford University economist Amir Lebdioui. The scholar cautions that rapid technological change could render substantial investments obsolete within ten years, leaving nations saddled with underutilised facilities and significant financial losses. His analysis suggests that many jurisdictions are failing to adequately stress-test their infrastructure plans against foreseeable shifts in global technology and supply chains. Lebdioui emphasises that policymakers must conduct rigorous assessments of technological trajectories and market dynamics before embarking on large-scale capital projects in these sectors. The warning comes as multiple countries in South and Southeast Asia have announced significant data centre and critical minerals processing investments, viewing these industries as pillars of future economic growth. Economic experts recommend that governments balance growth ambitions with prudent due diligence, ensuring that major infrastructure commitments remain viable across multiple technological scenarios rather than betting on a single trajectory.