ASIA PACIFIC DATA CENTRE H1 2025 UPDATE

However, demand has lagged behind capacity expansion, resulting in a cumulative vacancy rate of 23% as of H1 2025. Among key market movements, Hyderabad emerged as the top performer within the category, climbing three positions. This growth was driven by substantial self-build initiatives from AWS and Microsoft, coupled with increasing interest from colocation providers, which significantly accelerated the city's development momentum. EMERGING markets – Auckland, Taipei, Canberra, Manila, Busan, Bengaluru, Batam, Ho Chi Minh City, Perth, Hanoi, and Brisbane – have demonstrated notable progress, doubling their share of operational capacity from 3% in H1 2024 to 6% in H1 2025. Despite being emerging markets, vacancy rate is marginally lower than developing markets at about 22% in H1 2025. The only change in rankings within this category was Auckland overtaking Taipei to become the leading market. While these cities remain in the early stages of development, operators continue to explore opportunistic investments, signalling growing confidence in their long-term potential. Several markets – Perth, Busan, Batam, Auckland, and Manila – are set to benefit from new subsea cable projects currently underway, which are expected to significantly enhance connectivity and act as catalysts for accelerated growth in the coming years. SUMMARY: The Asia Pacific data centre market continues its robust expansion, driven primarily by surging demand for AI and cloud services. These technologies are expected to remain central to investment strategies for both data centre operators and end clients. While U.S. government-led trade and tariff barriers may pose short-term challenges, overall market sentiment remains optimistic. Investors and operators are strategically positioning themselves for long-term growth, underpinned by substantial land acquisitions and significant capital raised over the recent past. As a result, the remainder of the year is likely to see accelerated capital deployment, with a focus on initiating new developments and acquiring operational assets that offer strategic advantages. The region also continues to witness new entrants, particularly real estate developers eager to build infrastructure for both hyperscale and colocation operators. Emerging markets such as Kolkata, Visakhapatnam (Vaizag), Kyoto, Kyushu, Hokkaido, Chengdu, and Lingqui County are beginning to attract attention. These locations exhibit early signs of scalability and may soon be considered for inclusion in the regional maturity index.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW (*Overall stock of markets shown on this graph include Operational, Under Construction & Planned capacities)