APAC Data Centre H2 2023 Update

INTRODUCTION

Asia Pacific * has surpassed 10GW of operational capacity with ~800MW of new capacity added in H2 2023 bringing the total to 10.6GW

ASIA PACIFIC DATA CENTRE UPDATE – H2 2023 Since our last H1 2023 update, the operational capacity of Asia Pacific’s* data centre markets has surpassed the 10GW mark, with ~800MW of new supply added in H2 2023 bringing the total regional live capacity up to 10.6GW. We continue to witness a robust development pipeline with 3.9GW under construction throughout the region and 9.4GW in planning stages, which is an increase of ~900MW since our last update. Many markets across Asia Pacific continue to witness rapid growth in terms of both operational and development capacities. Almost 80% of operational capacity is concentrated in the region’s top 5 markets – Mainland China (3.9GW), Japan (1.3GW), Australia (1.2GW), India (1.1GW) & Singapore (962MW). In H2 2023, India joined Mainland China, Japan and Australia as >1GW-sized markets and we anticipate that Singapore will reach this status sometime in 2024 with 962MW currently live. More than 50% of under-construction activity regionally is concentrated in Mainland China and India. However, with a development pipeline of 2.9GW & 1.7GW of combined under construction and planned activity in India and Japan respectively, we will see these markets on track to rival Mainland China as the only three markets in Asia Pacific to grow larger than 3GW over the next 5 years. However, due to the ongoing issues with power availability in Japan, especially in Tokyo, there may be delays in the overall timeline for the market to reach this milestone. Malaysia is the fastest growing market in the region with ongoing interest and growth in both Kuala Lumpur and Johor. With 1.2GW of development pipeline underway, Malaysia, which currently has 189MW of operational capacity will see a 600% growth in the next 5 years. In this report, our Asia Pacific Data Centre Market Maturity Index forecasts the potential evolution of 30 macro level markets across the region over the next decade and we provide an analysis of where much of the growth in the region will take place. The report will also delve in detail into eight prominent primary markets – Mumbai, Tokyo, Sydney, Singapore, Seoul, Kuala Lumpur, Jakarta and Hong Kong – and provide an overview of four secondary markets worth noting – Bangkok, Manila, Auckland and Ho Chi Minh . (For quarterly updates on the markets we operate in, including key indicators, view our capabilities brochure ).

~80% of operational capacity is concentrated in the region’s top 5 markets – Mainland China (3.9GW), Japan (1.3GW), Australia (1.2GW), India (1.1GW) & Singapore (962MW) India , with 1,074MW currently in operation, has joined Mainland China (4GW), Japan (1.3GW) & Australia (1,168MW) as >1GW -sized markets.

At a micro level, Tokyo , with 1,028MW currently in operation, has joined Beijing (1.8GW) & Shanghai (1.4GW) as the only three cities in the region with >1GW operational capacities. Singapore is expected to enter the GW range in 2024 with a current operational capacity of 973MW.

>50% of under-construction activity is concentrated in Mainland China (952MW) and India (1.1GW)

Malaysia is the fastest growing market in the region. With 1.2GW of development pipeline underway, Malaysia, which currently has 189MW of operational capacity will see a 600% growth in the next 5 years.

*For all analysis, Asia Pacific region includes Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam only.

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