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Southeast Asia’s digital sales are projected to grow 17% in 2026, reaching USD 368 billion in gross merchandise value (GMV). Google, Temasek, and Bain & Company reported the forecast in their annual e-Conomy SEA 2026 study. The report links this expansion to rising digital commerce activity across the region.
The study also projects Southeast Asia’s digital economy will reach USD 1.14 trillion by 2035, growing approximately 13% annually. E-commerce remains a major growth driver, with sales expected to generate USD 226 billion in GMV during 2026. This outlook highlights the region’s potential despite consumer spending pressures and slower artificial intelligence adoption.
Funding trends reveal another shift within the digital economy. Southeast Asia recorded 421 private funding deals in 2025, representing a 28.4% decline from the previous year. However, companies across the sector attracted USD 21 billion during the first half of 2026, exceeding the entire USD 11 billion raised throughout 2025.
Large infrastructure investments explain much of this funding increase. STT GDC secured a deal worth USD 11 billion, while DayOne attracted a deal worth USD 5 billion. These investments supported the region’s expanding data center capacity, which reached 5.8 gigawatts by June 2026. Capacity stood at 4 gigawatts at the end of 2025.
Southeast Asia still uses less artificial intelligence than the United States and Europe. The report recorded five million AI tokens per person in the region. The United States recorded 60 million, while Europe reached 14 million per person. This gap suggests businesses still have significant room to expand AI adoption.
Capital markets also showed stronger activity across the region. Southeast Asia generated USD 8.5 billion through initial public offerings during the 12 months ending June 30, 2026. The amount more than doubled the previous period’s USD 3.6 billion, with Singapore and Malaysia driving listing activity.
The latest projections indicate that Southeast Asia’s digital sales growth extends beyond online shopping. Expanding infrastructure, stronger capital markets, and wider AI adoption could shape the region’s next growth phase. However, businesses must convert investment momentum into sustainable digital services and stronger consumer engagement.
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