ASIA PACIFIC DATA CENTRE H1 2025 UPDATE

H1 2025 UPDATE ASIA PACIFIC MATURITY INDEX Our Asia Pacific Data Centre Maturity Index tracks 30 data centre markets across Asia Pacific to compare their current maturity status as well as their potential evolution over the next decade.

While Tokyo and Beijing continue to lead as the two largest markets, Johor is rapidly closing the gap. With operators holding extensive land banks in the area, Johor has the potential to become the largest market in the region. Collectively, the Powerhouse markets account for 50% of Asia Pacific’s operational capacity and 44% of the development pipeline. Due to their maturity and status as preferred data centre hubs, these markets maintain a low vacancy rate of just 7.6%. ESTABLISHED markets – Melbourne, Singapore, Hong Kong, Seoul, Jakarta, Kuala Lumpur, and Bangkok – represent the fastest-growing category in the Asia Pacific region. While these markets collectively account for 23% of the region’s operational capacity, they contribute a larger share (29%) to the development pipeline, underscoring their accelerating momentum. Vacancy rates across these markets have declined to 12.9%, reflecting sustained and rising demand from enterprise and hyperscale clients. The category welcomed two new entrants in H1 2025: Kuala Lumpur and Bangkok. Both markets have attracted significant interest from operators, driven by large-scale expansions by hyperscale cloud service providers. Melbourne also demonstrated strong growth, climbing three positions to become the largest market within the Established category, mirroring Sydney’s trajectory in the Powerhouse segment. DEVELOPING markets – Hyderabad, Osaka, Chennai, Guangzhou, Delhi, and Pune – now comprises six cities following the growth of Kuala Lumpur and Bangkok into the Established Markets category. Notably, four of these six cities host U.S.-based hyperscalers, underscoring their strategic significance and long-term growth potential. Collectively, these markets represent 9% of total operational capacity and 11% of the development pipeline, highlighting a robust growth trajectory.

Our Maturity Index provides a statistical comparison of markets based on fifteen parameters, visually represented in the accompanying graph. It incorporates data on overall stock, including operational, planned, and under-construction data centres. The methodology remains consistent with our H2 2024 update, evaluating markets based on overall stock and vacancy, the presence of colocation players and hyperscalers and build capacities, considering the increasing influence of AI deployment across the region. Each primary parameter consists of five secondary parameters, amounting to a total of fifteen factors used to assess market maturity. Data points for each market are compiled into a parameter matrix and weighted to determine an overall growth score, where higher scores indicate stronger future growth potential. While the Maturity Index reflects the current market landscape, it also serves as a forward-looking indicator of growth opportunities. To enhance relevance and understanding of scale and dynamics, markets are categorized into the following four groups: POWERHOUSE markets – Tokyo, Beijing, Johor, Sydney, Shanghai, and Mumbai – are the largest in the Asia Pacific region, in terms of operational capacity, operator presence, and growth potential. Despite their scale, these markets experienced notable shifts in the first half of 2025. Johor entered the Powerhouse category, driven by a substantial increase in both operational capacity and its development pipeline. The market now represents 4% of the region’s operational capacity and 11% of the development pipeline. Sydney, previously the smallest among the Powerhouse markets, rose two positions to become the third-largest. This growth is fuelled by strong interest from hyperscale cloud service providers and its emergence as a key hub for AI deployments. Operators are making significant investments to establish and expand their presence in the city.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW