A decade ago, technology industry leaders captured the world’s attention by declaring that “data is the new oil”, highlighting its power to transform business, government, and society. Today, a new phrase is circulating in boardrooms and policy circles: “infrastructure is the new oil”. I didn’t coin it, but it’s a provocative idea that has implications for Australia and Southeast Asia as both regions confront the challenge of sustainable growth.
Ten years ago, the focus was on data as the critical resource driving innovation, economic competitiveness, and geopolitical influence. Today, attention has shifted to the infrastructure energy grids, digital networks, and transport corridors that underpin societal progress. It is now seen as the essential enabler of prosperity and security.
Southeast Asia is particularly well placed to lead the way in sustainable, renewable infrastructure.
In Southeast Asia, this shift is urgent. Energy demand is surging, and the region faces a US$3 trillion infrastructure investment gap as it works to decarbonise and build climate resilience. As artificial intelligence and cloud computing take root, robust digital infrastructure becomes as vital as yesterday’s oil pipelines, powering smart cities, digital government, and modern industry. Infrastructure has also become a tool of economic and geopolitical influence, with countries such as Australia investing in Southeast Asia’s sustainable development to promote regional stability.
Southeast Asia is particularly well placed to lead the way in sustainable, renewable infrastructure. The region is rich in solar, wind, hydro, and geothermal resources, with around 31 terawatts of renewable energy potential. Countries such as Vietnam, Thailand, and Indonesia are already leveraging these assets. Vietnam, in particular, has become a leader in solar and wind power generation. At the same time, the region’s rapid economic growth – marked by a 3 per cent annual rise in energy demand through 2030 – and fast-paced urbanisation create an opportunity to build clean infrastructure from the ground up, rather than retrofitting legacy systems.
Policy momentum is also evident. The Association of Southeast Asian Nations (ASEAN) aims to increase renewable energy’s share of its mix to 23 per cent by 2025, and some member states have set even more ambitious goals. Reforms such as feed-in tariffs, streamlined permitting, and investment incentives have fuelled solar and wind energy booms in Vietnam and the Philippines. Southeast Asia’s strong manufacturing base – second only to China in solar photovoltaics, battery, and clean energy component production – enables the localisation of clean energy supply chains, helping reduce costs and accelerate deployment.
International collaboration has also intensified. Annual renewable energy investment in the region rose from US$7 billion in 2018 to US$12 billion by 2023. Major players including China, Japan, South Korea, and Australia are contributing to this momentum. Cross-border initiatives such as the ASEAN Power Grid and the SunCable Australia-Asia Power Link are expanding regional energy integration and resilience.
This transformation is being shaped not just by market forces but by societal and environmental imperatives. Public demand for clean air, reliable energy, and climate action is accelerating the push for renewable infrastructure. At the same time, grassroots movements and international climate agreements reinforce the urgency of the transition.
The real question is no longer whether infrastructure is the new oil – but what kind of future we want it to build.
So, if infrastructure is indeed the new oil, what lessons can we take from the data-as-oil era? One is that infrastructure, unlike oil, is not a resource to be consumed but a platform for ongoing value creation. Its resilience, inclusivity, and sustainability are non-negotiable. In a climate-constrained world, infrastructure must be built to last and designed to empower. While oil extraction led to competition and geopolitical tension, infrastructure development today requires regional cooperation, interoperable standards, and shared responsibility.
Australia has a critical role to play. Through its A$2 billion Southeast Asia Investment Financing Facility, it is supporting clean energy, digital connectivity, and resilient transport initiatives in the region. Technical partnerships and capacity-building efforts are helping to close the infrastructure gap while embedding sustainability at the core of every project.
The real question is no longer whether infrastructure is the new oil – but what kind of future we want it to build. Will our decisions reinforce outdated carbon-intensive systems, or enable the rise of a clean energy economy? Can we integrate digital and physical infrastructure to promote inclusive growth? And how can Australia serve as a long-term, responsible partner in Southeast Asia’s sustainable development journey?
The answers to these questions will not only determine economic outcomes, but shape the health, resilience, and prosperity of communities across the region.
