APAC Data Centre Update: H2 2024

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