Citi’s Rohit Garg projects that Asia will account for 35% of global AI infrastructure spending by 2026, with over $150 billion already committed across semiconductor fabrication, cloud computing, and enterprise software. The region’s rapid adoption is driven by government incentives and private sector innovation.
- Over $150 billion in AI-related capital has been deployed across Asia since 2023
- Asia to account for 35% of global AI infrastructure investment by 2026
- China’s AI capital expenditure reached $68 billion in 2025
- India’s AI market growing at 38% CAGR with $12 billion in FDI in 2025
- AI chip production capacity in Taiwan up 55% since 2023
- VC funding for AI startups in Asia hit $46 billion in 2025
Asia’s artificial intelligence ecosystem is accelerating at an unprecedented pace, with Citi analyst Rohit Garg noting that more than $150 billion in direct investment has been deployed across the region since 2023. This capital is concentrated in semiconductor manufacturing hubs like Taiwan and South Korea, as well as cloud infrastructure expansions in India and Singapore. The momentum reflects a strategic pivot by both governments and multinationals to secure leadership in AI-driven industries. The analyst highlights that China, India, and Southeast Asia will collectively represent 35% of global AI infrastructure investment by 2026, up from 22% in 2023. In China alone, government-backed initiatives have fueled $68 billion in AI-related capital expenditure, with major firms like Huawei and Alibaba increasing R&D spending by 40% year-on-year. India’s AI market is projected to grow at a compound annual rate of 38%, supported by national digital transformation programs and foreign direct investment inflows exceeding $12 billion in 2025. Key metrics underscore the region’s rising influence: AI chip production capacity in Taiwan has expanded by 55% since 2023, while data center investments in Singapore and Seoul have surged by 60% and 45% respectively. These developments are enabling faster deployment of large language models and generative AI tools across financial services, healthcare, and logistics sectors. Market participants are responding with heightened activity. Equity markets in South Korea and India have seen AI-related stocks outperform the broader indices by over 27% and 22% in 2025. Venture capital funding for AI startups in Asia rose to $46 billion in 2025, with India and Singapore leading in early-stage deals. As infrastructure matures, analysts anticipate a new wave of productivity gains and competitive differentiation across industries.