APAC Data Centre Update: H2 2024
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ASIA PACIFIC DATA CENTRE H2 2024 UPDATE
• ASIA PACIFIC DATA CENTRE MARKETS MATURITY INDEX: 30 markets covered • PRIMARY MARKET OVERVIEWS: Tokyo, Singapore, Sydney, Hong Kong, China, Mumbai, Seoul, Johor, Jakarta • SECONDARY MARKET SPOTLIGHTS: Delhi, Taipei, Bangkok, Auckland, Manila, and Ho Chi Minh City FEATURED IN THIS UPDATE
H2 2024
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
Updated 18 February 2024
ASIA PACIFIC LOCAL MARKET LEADS
OUR PEOPLE
ALEX MOFFATT Australia
JOHN SIU Hong Kong, China
Our Asia Pacific Data Centre Group (APAC DCG), as part of our Global Data Centre Advisory Group, has created optimal solutions and location strategies to address highly complex IT requirements for enterprise clients across the region and globally since 2004. Our multi-disciplined team, consisting of experts across a spectrum of advisory services, focus specifically on the data centre market for seamless delivery. Every client requirement is unique; we have the experience to develop long-term strategies that drive wise investment decisions for enterprise users, colocation providers, hyperscalers, sector investors and developers. CONFIDENTLY GLOBAL, EXPERTLY LOCAL Click on each name to email them ASIA PACIFIC DATA CENTRE GROUP
ANDREW CHAN Chinese Mainland
DAVID CHEN Taiwan, China
SANDEEP BISWAS India
WIRA AGUS Indonesia
TODD OLSON Japan
JOHN PRITCHARD South Korea
VIVEK DAHIYA Head of Advisory &
TOM GIBSON Head of PDS, Sustainability & ESG, and Data Centre Group, Asia Pacific
JAMES NORMANDALE Head of Technical Services, Data Centre Group, Asia Pacific
Transaction Services, Data Centre Group, Asia Pacific
PRITESH SWAMY Head, Research & Insights, Data Centre Group, Asia Pacific
TIFFANY GOH Malaysia
TODD HANRAHAN New Zealand
SHANIL PATEL Head of Management Services, Data Centre Group, Asia Pacific
REBECCA JUNG Associate Director, Business Development Services, Data Centre Group, Asia Pacific
AMY KATHLEEN KELLY Associate Director, Data Centre PR & Media, Asia Pacific
THERESE CASTRO Philippines
BRENDA ONG Singapore
CHRIS CUFF Account Management, Data Centre Group, Asia Pacific
SHIVANI JADON Associate Director,
Colocation & Leasing, Data Centre Group, Asia Pacific
GLOBAL
EMEA
AMERICAS
JOHN MCWILLIAMS Head of Data Centre Insights, Research Manager
ANDREW FRAY Head of EMEA Data Centre Advisory Team
JESSICA HOWE Vice President, Global Growth Verticals
NORASAK SUP Thailand
TRANG BUI Vietnam
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
H2 2024 UPDATE
Asia Pacific * has a total of 12,206MW of operational capacity and an additional 14,338MW under development, with 3,087MW under construction and 11,252MW in planned stages.
ASIA PACIFIC DATA CENTRE MARKET OVERVIEW Asia Pacific closed off 2024 with 1,622 megawatts (MW) of new capacity going live across the region throughout the year, for a total 12.2 gigawatts (GW) of operational IT load. There is an additional 14.4GW in the development pipeline, signaling a continuing of the rapid expansion of the data centre sector in Asia Pacific into 2025 and beyond. Ongoing factors such as the rollout of 5G deployments and the shutdown of legacy 2G and 3G telecom networks, cloud adoption, rising digital content consumption, and Internet of Things (IoT) proliferation are continuing to fuel the data centre sector. Hyperscale cloud service providers (CSPs) and colocation operators will remain on a strong growth trajectory over the next 3 to 5 years as they expand their regional portfolios to meet end-client demand. Although Asia Pacific is not witnessing the same level of aggressive demand for AI workloads as the U.S., parts of the region are starting to prepare for the arrival of AI adoption at larger scales. The sector’s strong fundamentals—rising occupancy rates, stable rental yields, and long-term returns—have attracted significant private equity investment in the Asia Pacific data centre market. In 2024, a Blackstone led consortium, including the Canada Pension Plan Investment Board (CPP Investments), acquired AirTrunk for a record US$16B. While such large deals are likely to remain rare, further consolidation activity is expected in 2025 as investors continue to actively pursue smaller or standalone data centre providers in mature markets to expedite their expansions or smaller acquisitions in frontier markets that are difficult to penetrate without a local partner. Throughout 2024, there were a number of significant power purchase agreements (PPAs) and renewable energy contracts signed, notably by AWS, Google, and SUNeVision. With several markets, including China, Singapore, Hong Kong, Japan, and South Korea, setting thresholds for power usage effectiveness (PUE) as part of broader carbon neutrality goals during the year, an increase in more sustainable power initiatives and exploring of alternatives, such as nuclear energy, is anticipated from the sector. Our H2 2024 Asia Pacific Data Centre Update covers key nuances of eight prominent primary city markets— Tokyo, Singapore, Sydney, Hong Kong, China, Mumbai, Seoul, Johor, and Jakarta, whilst also providing an overview of six city secondary markets of Delhi, Taipei, Bangkok, Auckland, Manila, and Ho Chi Minh City, in order of the size of their current operational capacities. Also included in this report is our Asia Pacific Data Centre Market Maturity Index (through refined methodology and complemented with additional data validation efforts), which forecasts the potential evolution of 30 markets across the region over the next decade. The parametric based weighted evaluation of the markets’ factors existing and pl
Almost 80% of the region’s operational capacity is concentrated in the top 5 markets, which all exceed 1GW – Chinese Mainland (4.5GW), Japan (1.5GW), Australia (1.3GW), India (1.3GW), and Singapore (1.0GW), which surpassed the 1GW mark in 2024.
Outside of Chinese Mainland, Tokyo (1.1GW) and Singapore (1.0GW) are Asia Pacific’s >1GW mega cities . Sydney will likely be next to join their ranks in the next 2-3 years with 768MW of live capacity currently. Together, these top 3 city markets account for almost a quarter of the total operational capacity in Asia Pacific.
Japan (2.8GW) and India (2.7GW) have the largest pipelines under development in Asia Pacific, with each market accounting for around
Mumbai (335MW), Johor (226MW), Tokyo (223MW), Seoul (217MW), Hong Kong (208MW), Sydney (177MW), and Delhi (118MW) are all witnessing under construction activity in the triple digits , and account for almost half of the region’s total under construction capacity.
20% of the region’s total under construction and planned capacities.
Malaysia , mainly due to Johor, remains the fastest growing market in the region , more than doubling (~2.7x) it’s operational capacity in 2024.
For quarterly updates on Asia Pacific data centre key indicators at a country level and our track record in these markets view our capabilities brochure
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
*For all analysis, Asia Pacific region includes Australia, Chinese Mainland, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam only.
H2 2024 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.
We see these markets as high-demand locations and, therefore, the average vacancy rate is only 8%. While these powerhouse markets continue to rapidly add new capacity, other markets are also experiencing growth. Therefore, the share of powerhouse markets in the development pipeline—comprising both under-construction and planned capacities—stands at 36% which is significantly lower compared to their share of operational capacity. ESTABLISHED markets—Seoul, Hong Kong, Singapore, Melbourne, Johor, and Jakarta—have already created a strong foothold in the region, with most operators viewing these markets as strategically important for expansions. Together, these markets account for 25% of the region's operational capacity and 28% of the development pipeline. The average market size in terms of operational capacity for this group now stands at 514MW and 3.1GW cumulatively. With the exception of Singapore, these markets have significant development pipelines that position them to surpass the 1GW capacity mark. On average, the under-construction pipelines in these markets represent about 42% of their current operational capacities, putting them on track to double in size within the next 3 to 5 years. While Singapore's growth has been somewhat constrained due to restrictions on power allocation for new data centre developments, it remains a key strategic location for both operators and end clients. DEVELOPING markets—Osaka, Bangkok, Hyderabad, Chennai, Delhi, Pune, Guangzhou and Kuala Lumpur—may have comparatively smaller live capacities, but they are seen as markets for future growth. The average market size for this group at the end of 2024 was 174MW, accounting for only 11% of the operational capacity. However, these markets have been attracting occupiers for new builds over the past year, driving their share to 20% in terms of under construction capacity. Each of these markets have development pipelines to grow over 500MW. Of the eight markets in this
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 H1 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 gzrowth 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—Beijing, Tokyo, Shanghai, Sydney, and Mumbai—are the largest in the Asia Pacific region, in terms of operational capacity, operator presence, and growth potential. By the end of 2024, these markets accounted for 48% of the total operational capacity in Asia Pacific. Beijing became the first market in the region, and the second globally, to exceed 2GW in operational capacity. It now represents 17% of the region’s total operational capacity. Due to extensive development and the acquisition of significant land parcels by operators in key data centre clusters, there is growing pressure on operators to explore land in the extended or peripheral areas of these powerhouse markets. As a result, we may see new clusters emerging in areas such as Thane and Panvel in Mumbai, Tsukuba and Oyama in Tokyo, and Badgerys Creek and Kemps Creek in Sydney, among others.
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
group, four are from India. This reflects the confidence among operators and end clients on long-term growth the market holds. Since these are newer markets that had witnessed rapid expansions over the past few quarters, the average vacancy rate surged to about 25%. However, with rising demand, we anticipate the vacancy rates to decline over the year and to have a more balanced supply-demand ratio. EMERGING markets since our last update have increased their share in operational capacity from 3% to 5% at the end of 2024. Owing to evolving dynamics, 11 markets now fall in this group, including Busan, Auckland, Taipei, Canberra, Brisbane, Perth, Bengaluru, Manila, HCMC, Hanoi, and Batam. These markets are in their early stages of development having an average of only 58MW in operational capacity, and are gaining importance for diverse factors such as organic growth in demand, landing station connectivity, spillover demand centre, regional economic hub, etc. Since these markets are predominantly driven by retail clients, we expect a slow rate of leasing colocation spaces in these markets. Therefore, the vacancy rates in these markets are likely to remain high for the foreseeable future. SUMMARY: The Asia Pacific data centre market experienced significant growth in 2024, and an even sharper expansion is expected in 2025. Governments and enterprises across the region are accelerating investments in digital infrastructure, driven by the progressive onset of AI workload adoption, big data analytics, and edge computing. This surge in demand is prompting hyperscale CSPs to expand their regional footprint. Additionally, the widespread adoption of 5G technology and the IoT is generating massive volumes of data, increasing the need for low-latency processing capabilities closer to end-users. As markets continue to evolve and mature, the strong potential for investment and favorable returns has encouraged investors to deploy substantial capital into acquiring data centre assets and businesses across the region. The market continues to witness new entrants from diverse sectors such as real estate, renewable power, infrastructure, etc. entering the data centre business. Looking ahead to 2025, demand is expected to accelerate further, driven by advancements in emerging technologies such as quantum computing and AI-driven automation. Southeast Asia is poised for the highest growth, with Indonesia, Malaysia, and Thailand emerging as key regional hubs, supported by expanding digital economies and government incentives. However, challenges such as power shortages, land constraints, and geopolitical tensions may pose hurdles to expansion strategies
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW (*Overall stock of markets shown on this graph include Operational, Under Construction & Planned capacities)
GREATER TOKYO ASIA PACIFIC PRIMARY MARKET
Colo Hyperscale Cloud Telco
SAITAMA
FUCHU
CENTRAL TOKYO
KEY INDICATORS*
INZAI
1,136MW In Operation
30 / 118 Operators / Data Centres
223MW / 1,568MW UC / Planned
9% Colo Vacancy
SAGAMIHARA
KAWASAKI
ECOSYSTEM DEVELOPMENTS •
MARKET OVERVIEW Tokyo remained one of the most active data centre markets in the Asia Pacific region. Despite challenges related to land and power availability, operational capacity grew by 11% over the past year, reaching 1.14GW. Meanwhile, the development pipeline comprising under-construction and planned projects expanded by 29% to 1.8GW. Driven by sustained leasing activity, the vacancy rate remained low at 9%. While operators actively pursued their expansions, three key trends emerged in H2 2024: Artificial Intelligence (AI), Sustainability, and urban small-scale data centres. In December 2024, the Japanese government released the draft of its Seventh Strategic Energy Plan, reinforcing its commitment to decarbonization. The plan targets a renewable energy share of 40%-50%, nuclear power at 20%, and a reduction in thermal power reliance to 30%-40% by 2040. This initiative will support data centre operators in achieving carbon neutrality. Several operators, including At Tokyo and NTT amongst others, have already intensified their sustainability efforts. During H2 2024, Amazon signed a 9.5MW solar power purchase agreement (PPA). Artificial Intelligence (AI) also emerged as a major focus area in Japan, with several operators and service providers— SoftBank, Microsoft, Kyndryl, Rutilea, and Sakura Internet—announcing plans for AI-focused data centres and services. Sakura Internet further revealed its intention to acquire over 10,000 GPUs annually to meet the surging demand for AI processing. Meanwhile, Japan’s National Institute of Advanced Industrial Science and Technology (AIST) appointed Hewlett Packard Enterprise (HPE) to develop the AI Bridging Cloud Infrastructure (ABCI) 3.0 supercomputer, powered by Nvidia H200 Tensor Core GPUs, to be hosted at AIST’s Tokyo facility. The growing risk of evolving location preferences owing to technology-led disruptions and the government restriction created a need for end-clients to seek flexible urban locations. In response to such growing demand from end-clients, Obayashi Corporation launched MiTASUN to develop multiple small-scale data centres targeting the fringe of Tokyo CBD. Each facility is proposed to have a capacity of 2–10 MW, 300–800 racks, and cost JPY 5–15 billion.
Ares Management has entered into an agreement with GLP Capital Partners (GCP) to acquire its international business including its existing data centres in Tokyo and Osaka. The acquisition excludes GCPs’ assets and operations in Greater China. • Japan’s Cabinet Office has announced the "Watt-Bit Collaboration" plan to integrate power systems with communication infrastructure through public-private investments. The strategy aims to locate data centres near decarbonized power sources while utilizing cost-effective optical fiber for data transmission, reducing reliance on costly power grid expansions given optical fiber installation costs only about 1% of high-voltage transmission lines. • Google plans to commence the construction of its Proa subsea system cable in July 2025. The first segment of the cable connects Shima, Japan, to a branching unit in the Philippine Sea. The second and third will connect Tanguisson in Guam and Tinian in the Marianas. • Kyndryl launched an artificial intelligence (AI) private cloud in collaboration with Dell’s AI Factory, equipped with Nvidia Blackwell GPUs. The AI cloud is called “Kyndryl Vital AI Lab” and is aimed at enabling BFSI companies, manufacturers, retailers, and academics to deploy AI-powered solutions. • Microsoft announced its plans to invest US$2.9B to expand its cloud and AI infrastructure in Japan over a period of two years. A part of the investment will be used to skill three million people in AI and to set up a Research Asia lab in Tokyo. • SoftBank Corp added 4,000 Nvidia H100 GPUs for its Japan-based AI computing platform and plans to further expand to 10,000 GPUs by the end of 2025. While the chips are initially dedicated for its subsidiary—SB Intuitions. Softbank also intends to offer the platform as an "Infrastructure-as-a-Service" offering to companies and research institutions.
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
TYO JAPAN
H2 24
RECENT PROPERTY SALES SITE / PROPERTY
SIZE
SALE DATE SALE PRICE (US$) BUYER
SELLER
Mapletree Investments, Mapletree Industrial
2-1-7 Nagayama, West Tokyo
30,154m 2
Oct 2024
$95M
Nagamaya TMK
Dai-Ichi Life Holdings, Nippon Steel Kowa RE, Fuyo Lease Group
3-4-4 Shin-Suna , Central Tokyo
20,431m 2
Oct 2024
(Undisclosed)
AXA IM - Real Assets
CONTACTS
TODD OLSON Executive Sponsor,
SIGNIFICANT CONSTRUCTION UPDATES +
APAC DCAT & Managing Director, Japan & Korea todd.olson@ap.cushwake.com KOSUKE OGI Executive Director, Capital Markets, Japan Kosuke.Ogi@ap.cushwake.com MARI KUMAGAI Head of Research & Consulting, Japan mari.kumagai@cushwake.com
COMPANY
DATA CENTRE
LOCATION
POWER (TOTAL CAPACITY†)
STAGE - EST. RFSˆ
TOK1 E/A TOK2 B
Inzai Ome
27.5MW (300MW) 12MW (108MW)
U/C U/C
Airtrunk
Colt Data Centre Services
Inzai 4
Inzai
6.6MW (19.8MW)
U/C
DayOne (Previously GDS)
Fuchu Campus
Sagamihara
6MW (40MW)
U/C
TY07
Chuo City
1.2MW (4.8MW)
U/C – 2025
Equinix
TY13x
Minato City
8MW (36MW)
U/C – 2025
Goldman Sachs
Tokyo (HND1)
Sagamihara
20MW (80MW)
U/C
Goodman
Shirakami Data Centre
Inzai
26MW (64MW)
U/C
Tokyo NRT14
Inzai
30MW (84MW)
U/C – 2026
Mitsui Fudosan
Data Centre
Sagamihara
10MW (40MW)
U/C
TY1
Saitama
12MW (96MW)
U/C – Q1 2025
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
SINGAPORE
ASIA PACIFIC PRIMARY MARKET
Colo Hyperscale Cloud Telco
KEY INDICATORS*
LOYANG
1,016MW In Operation
26 / 53 Operators / Data Centres
BEDOK TAMPINES
PAYA LEBAR
SUNVIEW - JURONG
28MW / 216MW UC / Planned
2% Colo Vacancy
MARKET OVERVIEW Singapore became the fifth market in the Asia Pacific region to surpass the 1,000MW operational capacity milestone. Despite significant restriction on power allocations for new data centre builds, the market saw 31MW of new supply added during the year, pushing it past this threshold. With a vacancy rate of just 2%—the lowest in the Asia Pacific region—Singapore continues to solidify its position as a key data centre hub for end-users. In collaboration with the Malaysian government, the Johor-Singapore Special Economic Zone (JS-SEZ) was officially launched to drive economic growth in the region. Among its key focus areas, the digital economy has been identified as a major growth sector. The SEZ is expected to offer tax incentives and facilitate seamless cross-border movement of people and goods between the two countries. Such factors provide a conducive environment for data centre operations, leveraging the synergies between Malaysia and Singapore to support long-term industry expansion. The Singapore government announced plans to release 300MW of power allocations under the Green Data Centre Roadmap (GDCR) in May 2024. However, the official release date remains uncertain. In anticipation, operators are actively preparing their bid strategies, focusing on renewable energy sourcing, sustainability measures, and efficient building designs that optimize power and water usage. Some have formed strategic collaborations and consortiums to strengthen their bids. Interest from operators and investors for the GDCR power allocation is expected to be significantly higher than during the Data Centre Call for Application (DC-CFA), with several new entrants vying for allocations. Following the award of power allocations via the DC-CFA, Equinix has become the first operator to begin construction on its 20MW data centre. According to media reports, the facility will be designed to support AI workloads, span nine floors, and is expected to be ready for service (RFS) by the first quarter of 2027.
ECOSYSTEM DEVELOPMENTS • China Mobile inaugurated the Peace subsea cable that connects Singapore and France. It is China Mobile’s third cable that connects 12 countries across Asia and Europe and has 13 landing stations. • Equinix signed a Power Purchase Agreement (PPA) with Sembcorp Power to source 58.5MW of solar power in Singapore. The solar energy will be delivered from a solar installation spread over 60ha of land and the rooftops of five JTC Corporation buildings. The power generation from these solar installations is scheduled to start in 2029. • Micron has planned to invest US$7B over a five-year period to manufacture memory chips to meet the rapidly growing demand driven by AI adoption. • Nxera , a subsidiary of Singtel, disclosed its plans to phase out five of its legacy data centres as it focuses on sustainability. The existing customers from these data centres would be relocated to Nxera’s new data centre in Tuas that’s proposed to offer one of the lowest PUEs in the region. • Oracle has launched its second cloud region in Singapore, which it announced back in 2023. • The Singapore government has committed US$204M toward the National Supercomputing Centre (NSCC) to strengthen and upgrade its supercomputing infrastructure. The funds shall be used for the development of Super computers that are scheduled to get operational by the second half of 2025. • Singtel signed a deal with GMI Cloud signed a deal with GMI Cloud for its GPU-as-a-Service (GPUaaS) offering. GMI GPU’s platform would be integrated with Singtel's Paragon platform to enable access to Nvidia H100 GPUs in Singapore. Singtel has signed similar agreements for GPUaaS with Nscale, Bridge Alliance, and Vultr in the past.
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
SGP SINGAPORE
H2 24
RECENT SITE SALES SITE / PROPERTY SIZE
SALE DATE SALE PRICE (US$)
BUYER
SELLER
82 Genting Lane
13,978m 2 (NLA) Nov 2024
$1,018M
Keppel DC REIT
Keppel JV
CONTACTS
21 Jalan Buroh
39,980m 2 (GLA) Oct 2024
$186.3M
DayOne (GDS)
CapitaLand
BRENDA ONG Executive Director, Logistics & Industrial, Singapore brenda.ong@cushwake.com XIAN YANG WONG Head of Research, Singapore xianyang.wong@cushwake.com JAMES B. NORMANDALE Alternative Assets Lead, Asia Pacific Project & Development Services james.normandale@cushwake.com
46 Penjuru Lane
5,400m 2
Aug 2024
Undisclosed
Princeton Digital Group (PDG)
Yahoo Singapore
SIGNIFICANT CONSTRUCTION & PLANNED UPDATES +
COMPANY
DATA CENTRE
LOCATION
POWER (TOTAL CAPACITY†)
STAGE - EST. RFSˆ
BDX
SIN1
Paya Lebar
2MW (12MW)
U/C
SG6 SG4
Loyang Paya Lebar
4MW (20MW) 6MW (20MW)
U/C - 2027 Planned
Equinix
Keppel Data Centres
Singapore 8
Genting Lane
6MW (30MW)
U/C
Singtel
Tuas Data Centre
Tuas Ave 3
8MW (58MW)
U/C
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
SYDNEY ASIA PACIFIC PRIMARY MARKET
NORTH SHORE
KEY INDICATORS*
768MW In Operation
21 / 50 Operators / Data Centres
WESTERN SYDNEY
GREATER WESTERN SYDNEY
177MW / 810MW UC / Planned
9% Colo Vacancy
Colo Hyperscale Cloud Telco
SYDNEY CBD & OUTSKIRTS
MARKET OVERVIEW Sydney continues to be a dominant force in Australia’s data centre market, maintaining its position as a critical player in the broader regional landscape. Over the past year, operational capacity has increased by 6%, while the vacancy rate has dropped by three percentage points to 9%, highlighting a strong sustained demand for colocation services. Currently, 987MW of capacity is either under construction or in planning stages, with operators holding secured land parcels that have the potential to add over 2GW in future capacity. In addition to Doma Infrastructure Group (DIG) and Markham, as new entrants, GreenSquareDC and Goodman are also planning their first data centres in Sydney. Hyperscale cloud providers like AWS and Microsoft already have significant self-built data centre operations in the city centre with substantial land reserves available for future expansion. Furthermore, Sydney’s subsea network connectivity is set to be enhanced by the addition of five new undersea cables, reinforcing the city’s role as a digital infrastructure hub. To address the growing demand for skilled professionals, the Microsoft Data Centre Academy, launched in partnership with TAFE NSW in 2024, aims to bridge the skills gap by training technicians to manage and maintain critical built environments. This initiative is a key response to the sector's increasing reliance on specialized expertise as the industry expands. AI emerged as a major focal point in the latter half of 2024. The Department of Industry, Science and Resources held its second AI Month from 14 Oct to 15 Nov 2024, highlighting Australia's AI proficiency. Further, the department launched the 'Australia-first AI Plan’ that aims to enhance capabilities, stimulate AI investment, and foster economic growth. Lastly, in response to the rise of AI technologies, the Australian Government introduced ten mandatory regulatory guardrails for AI developers and deployers in high-risk environments and for general-purpose AI models. Complementary to these regulations are ten voluntary measures outlined in the Voluntary AI Safety Standards. With continued expansion in capacity, workforce development, improved connectivity, and evolving regulatory frameworks, Sydney’s data centre market is poised for long-term growth.
ECOSYSTEM DEVELOPMENTS • Alibaba has commenced shutting down its data centres in Australia. Sydney availability zones will cease. • Blackstone , the world’s largest alternative asset manager, has successfully closed its AU$24B acquisition of AirTrunk, marking the completion of the largest-ever data centre deal globally and the largest transaction in Australia for 2024. • Commonwealth Bank (CBA) formed a collaboration with Amazon Web Services (AWS) to create an artificial intelligence (AI) factory. CBA will use AWS' EC2 P5 instances in Sydney; powered by Nvidia H100 GPUs. The AI factory would be used to train AI large language models (LLMs) to enable CBA to provide more personalized experience to its customers. • HMC Capital launched DigiCo REIT on the Australian Stock Exchange with an initial market cap of US$2.74B. HMC has made several acquisitions prior to its REIT launch that includes Australian operations of Global Switch for AU$1.93B, iseek for US$264M, and StratCap for US$28.5M. • SubCo announced that it has dropped the plan to connect Tasmania with its upcoming Sydney-Melbourne-Adelaide- Perth (SMAP) subsea cable. The company said that it wasn’t commercially viable and would need government intervention if Tasmania needs to be connected. • Telstra and Optus Telecom switched off their 3G networks in Q4 2024, freeing up the bandwidth to boost the capacity, speed and reliability of their 4G and 5G networks. With this, the 3G network shutdown was completed across all providers in Australia.
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
SYD AUSTRALIA
H2 24
RECENT PROPERTY SALES SITE / PROPERTY SIZE
SALE DATE
SALE PRICE (US$)
OWNER
SELLER
Eastern Creek S7
258,000sqm Oct 2024
AU$35M
NEXTDC
Undisclosed
SIGNIFICANT CONSTRUCTION & PLANNED UPDATES +
CONTACTS
COMPANY
DATA CENTRE
LOCATION
POWER (TOTAL CAPACITY†)
STAGE - EST. RFSˆ
ALEX MOFFATT Director, Alternatives Capital Markets alex.moffatt@cushwake.com JOSH PHEGAN National Industrial & Logistics, Valuation & Advisory josh.phegan@cushwake.com
SYD2 SYD3
Lane Cove Huntingwood
35MW (138MW) 7MW (320MW)
U/C U/C-2025
Airtrunk
Eastern Creek Campus
Eastern Creek
35MW (281MW)
U/C
SYD02 SYD03
Eastern Creek Eastern Creek
32MW (32MW) 32MW (32MW)
Planned Planned
Digital Erskine Park 2 - SYD11
Erskine Park
9MW (17MW)
Planned
SY5 SY9X
Alexandria Rosehill
12MW (42MW) 15MW (30MW)
U/C - 2025 Planned
Equinix
IC3 SuperWest
Macquarie Park
45MW (45MW)
Planned
Sydney S3 Sydney S6
Artarmon Horsley Park
20MW (80MW) 3MW (14MW)
U/C U/C
Stockland
Athena
Macquarie Park
10MW (25MW)
U/C
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
HONG KONG, CHINA ASIA PACIFIC PRIMARY MARKET
Colo Hyperscale Cloud Telco
FANLING
KEY INDICATORS*
SHA TIN
TSUEN WAN
581MW In Operation
21 / 46 Operators / Data Centres
TSUENG KWAN O
208MW / 490MW UC / Planned
21% Colo Vacancy
Colo Hyperscale Cloud Telco
HONG KONG ISLAND
MARKET OVERVIEW Hong Kong ranks as the second most densely populated data centre market after Singapore, serving approximately 12,750 people per megawatt (MW) of operational capacity. Despite this high density, Hong Kong remains a key data centre hub in the Asia Pacific region, with its operational capacity expected to double over the next five years. This optimism is reflected in the aggressive expansion plans of data centre operators, as the supply pipeline nearly doubled to 700MW by the end of 2024, up from 317MW in 2023. While SUNeVision continues to lead as the largest data centre operator in Hong Kong, other major players, including Equinix and DayOne (formerly GDS), also hold significant existing and future development capacities. Tseung Kwan O has retained its position as the largest data centre cluster, accounting for nearly 50% of the city’s operational capacity. However, the cluster spanning Tsuen Wan and Kwai Chung districts is experiencing the highest development activity, representing 48% of the total pipeline. While some of the future supply has been pre-committed by hyperscalers, the various options of new stocks will provide opportunities for data centre occupiers to secure favorable terms and further expand their footprint in the city over the next few years. Stable demand from hyperscaler activities contributed to the decline in vacancy rates, dropping to 21% in H2 2024. Alongside the growing development pipeline, colocation providers are actively upgrading their facilities to support AI hosting and meet evolving client requirements. In the latter half of 2024, Global Switch introduced direct liquid cooling at its Tseung Kwan O data centre, catering to the increasing AI-driven demand, particularly from Chinese clients. In October 2024, the Hong Kong government released its first set of guidelines for the responsible application of AI. In an official statement, the government advised banks and financial institutions to establish an AI governance strategy outlining how AI systems should be implemented and utilized. The guidelines emphasize a risk-based approach to AI procurement, usage, and management, advocating for human oversight to mitigate potential risks.
ECOSYSTEM DEVELOPMENTS •
China Mobile and I Squared Capital have submitted the bid to acquire HKBN, a Hong Kong based corporate & home fibre broadband service provider. As per media reports, HKBN has over 907,000 residential broadband customers and 98,000 enterprise clients. The final bids are likely to exceed US$1B. • Goodman Group announced that it completed the development of a data centre with a capacity of 50MW at its Tsuen Wan West campus and handed over to DayOne (previously GDS, HK3). This was the third building that was completed in the campus having a total potential of 225MW when fully built. • Hong Kong Telecom (HKT) shut down its 2G network and reallocated the released spectrum towards its 5G network. Several other markets have taken similar measures to discontinue legacy 2G and 3G networks to free up the bandwidth and improve the overall efficiency of their new generation 5G networks. • Inspur Cloud Services and Cyperport have signed a Memorandum of Understanding (MoU) for the development of AI infrastructure in Hong Kong. The MoU will see the two parties building the infrastructure for a computing cluster in Hong Kong focusing on building a computing power cluster and enhancing cloud computing capabilities within the region. • The Privacy Commissioner for Personal Data (PCPD) published the “Artificial Intelligence: Model Personal Data Protection Framework.” The framework aims to provide practical recommendations to organisations on their strategies to adopt third-party AI systems to comply with the Personal Data (Privacy) Ordinance (PDPO). • SUNeVision has signed a six-year partnership agreement with Green Valley Landfill (GVL) and CLP Power to purchase site-specific renewable energy certificates (RECs) for its “Mega” data centre campus. GVL’s solar farm is situated in Tseung Kwan O and expected to commence operations during H1 2025.
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
HKG GREATER CHINA
H2 24
SIGNIFICANT CONSTRUCTION & PLANNED UPDATES +
COMPANY
DATA CENTRE
LOCATION
POWER (TOTAL CAPACITY†)
STAGE - EST. RFSˆ
HKG1 HKG2
Tsuen Wan Sha Tin
4MW (20MW) 6MW (15MW)
U/C U/C – 2025
Airtrunk
CONTACTS
Chinachem Group
Tung Chung Data Centre
Tung Chung
31MW (31MW)
Planned – 2027
JOHN SIU Managing Director, Hong Kong john.siu@cushwake.com
Hong Kong Fo Tan Data Centre 613
China Mobile
Sha Tin
10MW (40MW)
U/C – 2025
U/C – 2026 (Phase 1) U/C – 2028 (Phase 2)
China Telecom
Tseung Kwan O Data Centre Tseung Kwan O
14MW (84MW)
ROSANNA TANG Head of Research, Hong Kong rosanna.tang@cushwake.com THOMAS CHAN Associate Director, Research, Hong Kong thomas.chan@cushwake.com
HK 2 HK 3 HK 4 HK5 HK6
Kwai Chung Tsuen Wan Kwai Chung Tsuen Wan Tsuen Wan
16MW (16MW) 21MW (50MW) 22MW (22MW) 40MW (40MW) 50MW (50MW)
U/C - 2025 U/C – 2026 Planned U/C- 2027 U/C- 2027
DayOne (erstwhile GDS)
Goodman
Texaco Centre
Tsuen Wan
32MW (32MW)
Planned – 2027
Tower 3.1 Tower 3.2
Fanling Fanling
8MW (8MW) 8MW (8MW)
U/C – 2025 Planned – 2026
Mapletree
Mapletree TM
Fanling
25MW (50MW)
U/C – 2025
MEGA IDC (Phase 2)
Tseung Kwan O
45MW (180MW)
U/C – 2026
Equinix
HK6
Tsuen Wan
6MW (70MW)
U/C-2026
Vantage Data Centers
HKG5
Tsuen Wan
12MW (48MW)
U/C- 2026
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
MUMBAI ASIA PACIFIC PRIMARY MARKET
POWAI
KEY INDICATORS*
542MW In Operation
17 / 48 Operators / Data Centres
THANE BELAPUR ROAD
335MW / 888MW UC / Planned
6% Colo Vacancy
Colo Hyperscale Cloud Telco
PANVEL
MARKET OVERVIEW Mumbai is not only the largest data centre market in India but also ranks among the top five in the Asia Pacific region (excluding Mainland China). Both colocation operators and hyperscale cloud service providers (CSPs) have continued to expand aggressively over the past year. Extensive land acquisitions in recent years have prompted operators to explore new locations within Mumbai. While Thane saw its first land parcel acquisition for data centres in 2022, the same hyperscaler acquired another parcel in Palava in December 2024. These emerging locations offer suitable infrastructure for data centre development and may attract other operators for future expansions. Beyond the 1.2GW currently in the development pipeline, secured land parcels held by operators could potentially add another 2GW of capacity in Mumbai if fully developed. The city continues to be a preferred destination for data centre investments due to its excellent subsea cable connectivity, status as India’s financial capital, and well-established infrastructure. Investment in cloud infrastructure has also gained momentum. AWS recently signed a Memorandum of Understanding (MoU) committing $8.3B toward developing its AWS Asia Pacific (Mumbai) Region. Microsoft has announced plans to invest $3B to expand AI and cloud computing capabilities in India, while Airtel Business is working with Google to develop a sovereign AI cloud offering tailored for government organizations. The latter half of 2024 has seen a surge in AI-related investments. Nvidia disclosed that major Indian conglomerates, including Reliance, Mahindra, Tata Communications, Infosys, and Wipro, have either placed or are in the process of placing orders for Nvidia H100 GPUs, which will be deployed for AI-driven workloads. In line with its goal of achieving 100% renewable energy-powered data centres, CtrlS announced the completion of a 125MW captive solar farm in Nagpur, which will supply up to 60% of the energy required for the campus.
ECOSYSTEM DEVELOPMENTS • Bharti Airtel is working on a sovereign AI cloud offering with Google to be launched in 2025. The offering is expected to combine hyperscale capabilities including AI services and tailored for Indian government organizations. • Colt Data Centre Services and RMZ formed a 50:50 joint venture to invest US$1.7B in the Indian data centre market. Colt has existing developments in Navi Mumbai and Chennai. • Equinix signed a power purchase agreement (PPA) in India with CleanMax and will partner to construct a 33MW captive renewable power plant in Maharashtra. The plant will consist of 26.4MW of solar and 6.6MW of onshore wind power. The plant is expected to commence operations in 2025 and will provide power to Equinix’s data centres in Mumbai. • The Maharashtra state government approved the establishment of a new Green Integrated Data Centre Parks that will operate on 100% renewable energy. The Green Integrated Data Centre Parks project plans to build three data centre parks in greater Mumbai region having a total IT load of at least 500MW each. The government will also provide special incentives for setting up these Green Integrated Data Centre Parks. • The Reserve Bank of India (RBI) plans to offer cloud storage services for financial institutions in India. The pilot phase of the program is expected to commence in 2025. • Rustomjee , a real estate development company, has announced its interest to develop data centres in Mumbai. The developer has an existing township in the Thane region of greater Mumbai. The data centre is expected to be located within this township.
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
MUM INDIA
H2 24
RECENT PROPERTY SALES SITE / PROPERTY SIZE
SALE DATE
SALE PRICE (US$)
OWNER
SELLER
Palava
38.18 Acres
Q4 2024
$56M
Hyperscaler
Lodha Group
Overseas Packing Industries & Warden Hyforce
Chandivali
5,597 sqm
Q4 2024
$18M
Equinix
CONTACTS
SIGNIFICANT CONSTRUCTION UPDATES +
SANDEEP BISWAS Director, Data Centre Advisory, India sandeep.biswas@ap.cushwake.com SUJOG DWIVEDI Associate Director, Data Centres, India Sujog.Dwivedi@cushwake.com
COMPANY
DATA CENTRE
LOCATION
POWER (TOTAL CAPACITY†) STAGE - EST. RFSˆ
CapitaLand
CLDC MUM01
Navi Mumbai
33MW (66MW)
U/C
CtrlS
Mumbai 7
Thane Belapur Road
12MW (35MW)
U/C - 2026
BOM10
Chandivali
5MW (40MW)
U/C - 2025
MB3 Campus
Thane Belapur Road
15MW (300MW)
U/C - 2025
EverYondr
Mumbai 1 Campus
Navi Mumbai
11MW (60MW)
U/C - 2025
Lumina CloudInfra
Airoli
Navi Mumbai
13MW (60MW)
U/C - 2025
NTT Mumbai DC 10 NTT NAV1 A - D Campus NTT NAV2 C Campus
Chandivali Navi Mumbai Navi Mumbai
6MW (26MW) 35MW (140MW) 12MW (288MW) 4MW (17MW) 50MW (60MW) 4.8MW (10MW) 6.4MW (39MW) 10MW (26MW) 5MW (40MW) 40MW (40MW) 14MW (24MW)
U/C – 2025 U/C U/C
NTT Data
Mumbai 1 Mumbai 3
Thane Belapur Road Mahape
U/C U/C
Nxtra data
Sify Airoli 2 Sify Rabale Tower 5 Sify Rabale Tower 6 STT Navi Mumbai DC 3 STT Mumbai DC 5 STT Mumbai DC 4
Navi Mumbai Navi Mumbai Navi Mumbai
U/C U/C U/C - 2025 U/C - 2026 U/C - 2025 U/C
Sify
Thane Belapur Road Thane Belapur Road Thane Belapur Road
Yotta
Navi Mumbai – Panvel DC Park Panvel
24MW (170MW)
U/C
Navi Mumbai MU1
Airoli
25MW (150MW)
U/C
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
GREATER SEOUL ASIA PACIFIC PRIMARY MARKET
INCHEON/ W.GYEONGGI
SW SEOUL
KEY INDICATORS*
GANGAM
520MW In Operation
23 / 49 Operators / Data Centres
SEONGNAM
217MW / 421MW UC / Planned
6% Colo Vacancy
Colo Hyperscale Cloud Telco
STH GYEONGGI
MARKET OVERVIEW Despite challenges related to land and power constraints, Seoul expanded its operational capacity by 15% over the past year, reaching 520MW. This milestone makes Seoul the eighth city in the Asia Pacific region to surpass 500MW in operational capacity. With a development pipeline of 638MW, the city is on track to exceed 1GW in the coming years. While capacity grew significantly, vacancy rates dropped by three percentage points to 6% by the end of 2024, driven by strong colocation demand from financial services, cloud, and IT companies. The Southwest Seoul cluster remains the largest, accounting for 26% of total operational capacity. However, new supply is shifting toward the Incheon/West Gyeonggi cluster, which comprises 46% of the development pipeline. Power companies in South Korea are actively exploring alternative energy sources for data centres. Korea Southeast Power and Samsung C&T have announced plans to use hydrogen fuel cells, while LS Electric and the Korea Hydro & Nuclear Power Corporation (KHNP) signed an MoU to develop small modular reactor (SMR) technology to power their AI data centres. KHNP’s i-SMR, capable of generating 170MW, is expected to be operational by 2028. In September 2024, the Korean government established the Presidential Committee on AI (PCAI) to shape national AI policies and strategies. The PCAI aims to position Korea among the world’s top three AI leaders, enhance AI safety and security, and attract private sector investments worth US$48.9B. Additionally, it targets AI adoption rates of 70% across industries and 95% in the public sector by 2030. Meanwhile, South Korea’s Personal Information Protection Commission (PIPC) issued guidelines on the applicability of the Personal Information Protection Act (PIPA) to foreign businesses, requiring both domestic and international companies to adhere to strict data protection standards. These policies and initiatives are expected to further drive demand for data centres in Korea.
ECOSYSTEM DEVELOPMENTS • CPP Investments and Pacific Asset Management Company (Pacific AMC) have formed a US$711M joint venture to invest in development of hyperscale data centres in South Korea with the first facility to be in Seoul. • Korea Southeast Power and Samsung C&T signed a Memorandum of Understanding (MoU) with the Chungnam regional government to develop South Korea's first hydrogen fuel cell power plant which will utilize a 900MW hydrogen plant in conjunction with 300MW of battery energy storage to support a hyperscale data centre located in Dangjin-si, south of Seoul. The project is estimated to cost US$1.7B with just over half allocated for the data centre. • KT Corp and Microsoft have agreed a multibillion-dollar five year AI partnership. As part of the deal, KT will provide US$450M worth of network and data centre infrastructure to Microsoft over a period of 15 years and invest in AI, cloud technologies, and IT business whereas Microsoft will provide resource commitments in terms of people and infrastructure. The partnership aims to drive KT's AI and ICT transformation and advance AI services across South Korea. • SK Telecom announced its plan to build gigawatt-scale "AI Infrastructure Superhighway“ in "key regions" across South Korea with the first one being in Pango, Seoul. In addition, the company also launched its GPU as a Service (GPUaaS) offering in South Korea with GPU's hosted at the AI Data Centre in Gasan, Seoul. The offering is in partnership with Lambda and will be called SKT GPUaaS. • The Yonsei University has developed the country’s first quantum computing hub at its Songdo International Campus. The hub consists of an IBM Quantum System One, powered by a 127-qubit IBM Quantum ‘Eagle’ processor. The hub will be used to support quantum research for biotech applications, including drug development.
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
SEL SOUTH KOREA
H2 24
RECENT SITE SALES SITE / PROPERTY
SIZE
SALE DATE
SALE PRICE (US$) BUYER
SELLER
Macquarie Korea Infrastructure Fund
Hanam-Si, Seoul
41,919 sqm August 2024
$538.4M
IGIS Asset Management
SIGNIFICANT CONSTRUCTION UPDATES +
CONTACTS
COMPANY
DATA CENTRE
LOCATION
POWER (TOTAL CAPACITY†)
STAGE - EST. RFSˆ
JOHN PRITCHARD Head of Tenant Advisory Group, Korea john.pritchard@cushwake.com
STT Telemedia
Gasan Data Centre
Geumcheon
30MW (30MW)
U/C- 2026
SEL01
Geumcheon-gu
15MW (15MW)
U/C – 2025
RORY NEWMAN Senior Manager,
SEL2
Incheon
12MW (96MW)
U/C- 2025
Leasing Tenant Representation rory.newman@cushwake.com
Gangnam IDC
Seocho
30MW (30MW)
U/C - 2025
JOE KIM Senior Manager, Leasing Tenant Representation joe.kim1@cushwake.com
Equinix
SL2x
Hyangdong
12MW (22MW)
U/C
Gasan Iwill Data Centre Bucheon Peach Data Centre
Geumcheon Bucheon
13MW (26MW) 6MW (48MW)
U/C – 2025 U/C - 2026
KT
SUKI KIM Head of Research suki.kim@cushwake.com
Bucheon AI Data Centre
Bucheon
4.8MW (4.8MW)
U/C
GS E&C
Magna Data Centre
Gyeonggi
12MW (12MW)
U/C - 2026
CHLOE KWON Assistant Manager, Logistics & Industrial Research chloe.kwon@cushwake.com
CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW
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