Publishing Date: Dec 16, 2021

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Asia-Pacific Data Centre Market predicted to increase over 90% in 3 years

Latest research reveals that the Asia-Pacific region, the fourth fastest growing Data Centre market, is forecast to increase by an average of 90% over the next 3-year period – more than double the European amount.

The latest survey of data centre developments in the Asia-Pacific region identifies that over 1.5 million square metres of third-party space is under development, far higher than in Europe with 850k metres squared.

The Asia-Pacific Survey covering twelve (12) countries reveals that there are over 1.5 million metres squared of data centre developments, with the focus of new facilities in Australia, Hong Kong, Malaysia, Thailand, South Korea and Indonesia – with these six (6) countries alone accounting for one million square metres of space.

In contrast to the European market in the Asia-Pacific region the fastest growing data centre markets are forecast to increase by an average of 90% over the next 3-year period. This is more than double the European amount with Australia being the leader having 417,000 metres squared of space under development – an increase of 97%.

In the Asia-Pacific region forecast growth rates vary. China is the second largest data centre market after the USA with over 1.7 million metres squared of space available at the beginning of 2021. China is forecast to see growth of 239,000 metres squared with growth in the Greater Beijing and Yangtze River (Shanghai area) regions. Due to the large size of the Chinese market it is the equivalent of 14% growth.

Singapore, the biggest data centre market in southeast Asia with 417,000 squared metres of space, is forecast to have 92,000 metres squared of space under development over the next 3-year period. This is the equivalent to 22% growth. The relative slowdown is due to the data centre expansion moratorium imposed by the Singaporean Government and provides an opportunity for other markets, notably Indonesia & Malaysia, to take share.

Finally, the report finds that the key data centre developments in the Asia-Pacific and European regions are part of a wider trend taking place in all markets:

  • The emergence of large campus Hyperscale data centre facilities in most markets including those with power of up to 150 MW such as Next DC in Melbourne.
  • The availability of new sources of funding from private equity & sovereign wealth funds is driving data centre investment. These funds have allowed more speculative projects to be initiated by PDG, Digital Edge, Mapletree Investment Trust (MIT) and Lendlease. These are all backed by private equity & sovereign wealth funds.
  • Investments are taking place in new or under-utilised data centre markets with Indonesia & Malaysia seeking to capitalise on the Singaporean Government moratorium on new data centre licencing by building facilities near to Singapore. For example, GDS is building a facility at Johor (Malaysia) and Data Centre First is building a facility at Batam Island (Indonesia) close to Singapore. ST Telemedia is also building a campus of up to 60,000 square metres of space near Bangkok (Thailand).
  • Similarly, European markets are seeing huge new data centre investments. The clearest example of new investment is Portugal which has attracted funding from private equity groups Davidson Kempner Capital Management & Pioneer Point Partners to build a huge data centre campus at the city of Sines. This facility, south of Lisbon, with up to 450 MW of power when fully built out will potentially be up to 5 times the size of the existing Portuguese data centre market.

Publication Date: August 2021

Number of Pages: 42

Click here to see table of contents

Price:  GBP £595

For more information or to purchase the above report, please contact Caroline Hitchins on / +44 (0) 7544 121900

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