The report additionally famous that 85% of present operational capability in APAC is colocation-based—considerably larger than within the Americas (60%) and EMEA (75%).
In sum, what to know:
Asia Pacific will lead in colo – Cushman & Wakefield tasks APAC will surpass the U.S. with 23.9 GW of knowledge heart capability by 2030, pushed by AI, cloud and speedy digitalization.
Excessive demand, underserved markets – Greater than six international locations within the area will nonetheless exceed a metric of 200,000 individuals served per MW in 2030, highlighting main development potential throughout Southeast Asia’s growing infrastructure base.
$156B CapEx wanted – The area’s 13 GW buildout pipeline by way of 2030 would require over $150B in funding, with rising rack densities driving each new development and legacy upgrades.
The Asia Pacific area is on observe to change into the world’s largest colocation knowledge heart market by 2030, surpassing america in each whole capability and rental income, in response to a brand new report by Cushman & Wakefield.
In its Asia Pacific Information Centre Funding Panorama report, the actual property agency tasks that the area will attain 23,904 megawatts (MW) of operational knowledge heart capability by the tip of the last decade, outpacing the 18,256 MW anticipated within the U.S. This anticipated surge in APAC will likely be mainly pushed by speedy development in cloud computing, synthetic intelligence (AI), digital companies and rising demand for digital infrastructure throughout Southeast Asia, India and China.
The report additionally famous that 85% of present operational capability in Asia Pacific is colocation-based—considerably larger than within the Americas (60%) and EMEA (75%). This development is predicted to proceed, with colocation accounting for 86% of the area’s growth pipeline.
The report additionally highlighted that international locations like Japan, India, South Korea and Australia—alongside China—are among the many area’s main knowledge heart hubs and characterize 90% of Asia Pacific’s GDP and 73% of its knowledge heart growth pipeline.
Regardless of being residence to 56% of the worldwide inhabitants, the area stays comparatively underserved when it comes to knowledge heart capability. In seven of the area’s 14 markets, there are greater than 200,000 individuals per MW of colocation capability—an indicator of excessive demand and low infrastructure penetration, in response to the actual property agency.
The report additionally burdened that there’s a continued development potential in markets corresponding to Thailand, Indonesia, Vietnam and the Philippines, the place knowledge heart ecosystems are nonetheless in early levels of growth. Though investor curiosity is rising, full maturation of those markets could prolong past 2030, it added.
In the meantime, established regional hubs like Singapore and Hong Kong preserve excessive density and tight capability margins. Nevertheless, each serve broader regional wants and proceed to draw main operators, regardless of regulatory and land constraints in Singapore.
To assist the projected 13 GW of latest capability in growth throughout the area, Cushman & Wakefield estimates a capital expenditure requirement of $156 billion till 2030. These investments embody each greenfield tasks and modernization of legacy knowledge facilities to assist higher-density workloads pushed by AI and cloud computing.
The report highlighted that personal fairness, actual property builders and operator-developer partnerships are taking part in an more and more essential function in funding this knowledge heart growth.
U.S.-based traders stay lively within the Asia Pacific market, with American colocation suppliers accounting for 23% of operational capability and practically 30% of capability underneath growth. Funding is concentrated in 5 international locations—Japan, Australia, Malaysia, China and India—which collectively characterize 86% of U.S.-linked knowledge heart capability within the area, in response to the report.
The Asia Pacific area’s financial fundamentals are additionally fueling development within the knowledge heart area. The area’s GDP is forecast to surge from $39 trillion in 2024 to $54 trillion in 2030, at a compound annual development charge (CAGR) of roughly 6%.
