APAC Data Centre Update: H2 2024

APAC SECONDARY MARKETS

H2 24

BANGKOK

CONTACTS

KEY INDICATORS*

GARETH POWELL Country Head, Thailand gareth.powell@cushwake.com NORASAK SUPHAKORNTANAKIT Head of Capital Market & Investment, Thailand

25 / 53 Operators / Data Centres

105MW In Operation

46MW / 186MW UC / Planned

24% Colo Vacancy

In the past year, Bangkok's data centre market has witnessed remarkable growth, fueled by significant investments from global technology firms and strategic initiatives by the Thai government. In September 2024, Google announced a US$1B investment in the Bangkok-Chonburi region to establish data centres and cloud infrastructure to meet increasing demand for cloud services and support artificial intelligence adoption in the region. Following this, on November 5, 2024, GDS announced its plan to invest US$1B over the next five years, with land in Chonburi already secured for the development. On January 7, 2025, AWS launched its first cloud region in Thailand, comprising three availability zones. AWS further committed US$5B over the next 15 years to strengthen its cloud presence. Additionally, Edgnex Data Centres formed a joint venture with Proen to develop and operate data centres in Thailand and further plans to invest over US$1B in Thailand. In parallel, Thailand's Prime Minister, Paetongtarn Shinawatra, introduced new digital policies aimed at addressing emerging cybersecurity threats and accelerating the digital economy. The government targets the digital economy to contribute 30% of Thailand’s GDP by 2030, reflecting a long-term vision to enhance the country’s position as a regional digital hub. Driven by these developments, local and international operators have continued to expand in Bangkok. As of December 2024, Bangkok's operational data centre capacity grew by approximately 80%, rising from 59MW in December 2023 to 105MW. While the under construction and planned pipeline can add 230MW, land banks in the region hold the potential to support over 800MW of future capacity. The Thai Board of Investment (BOI) revealed that investors have applied for incentives for 47 data centre and cloud service projects worth US$5.1B (THB 173 billion). Despite these advancements, operators remain active in pursuing opportunities for both land parcels and built assets, reflecting strong long-term growth potential and confidence in Bangkok's data centre market.

norasak.sup@cushwake.com NITA ATHAKAIWALVATHI Senior Manager, Capital Market & Investment, Thailand nita.ath@cushwake.com

AUCKLAND

KEY INDICATORS*

TODD HANRAHAN Head of Project & Development Services, New Zealand todd.hanrahan@cushwake.com

17 / 25 Operators / Data Centres

73MW In operation

12MW / 152MW UC / Planned

4% Colo Vacancy

Auckland is steadily establishing itself as a key data centre hub, with the development pipeline reaching 164MW by December 2024. Additionally, operators such as NextDC and Goodman are in the early stages of entering Auckland’s data centre market. Over the past six months, limited new supply coupled with steady leasing activity has led to a decline in vacancy rates, reaching 4% by the end of December 2024. Government-led initiatives have become a major driver of data centre demand in Auckland. New Zealand’s Ministry of Health has announced significant investment in developing a unified health data ecosystem to enhance the country’s healthcare systems and ensure future readiness. Additionally, the government introduced the Service Modernisation Roadmap, a three-year initiative (2024–2027) aimed at digitizing, integrating, automating, and transforming all public sector services. Hyperscale-CSPs remained highly active in the second half of 2024. In December, Microsoft launched New Zealand’s first hyperscale data centre, with Fonterra, ASB Bank, and Whakarongorau Aotearoa (New Zealand Telehealth Services) as key anchor tenants. The same month, AWS announced the launch schedule of its Auckland Cloud Region in 2025, with plans to invest US$7.5B over 15 years to develop and operate three availability zones. AWS also revealed that Datacom, One New Zealand, and Vector would be the first customers hosted in the new facility. As these hyperscale CSPs expand their presence in Auckland, both Microsoft and AWS have committed to sustainability, ensuring that their data centres operate on 100% renewable energy. Colocation operators anticipate exponential demand growth driven by AI deployments in Auckland. As a result, operators are actively evaluating plans to enhance existing facilities and develop new data centres to accommodate the expected surge in AI-driven demand over the next three to five years.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW