APAC Data Centre Update: H2 2024

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.