Asia Pacific Data Centre Investment Landscape

CONTENTS >>

ASIA PACIFIC DATA CENTRE INVESTMENT LANDSCAPE

U.S. Direct Investment into Asia Pacific Over the past years, U.S. direct investment into the Asia Pacific region has expanded markedly, rising from approximately US$500 billion in 2009 to US$1.07 trillion in 2023, reflecting a compound annual growth rate (CAGR) of around 6%. This sustained growth underscores a gradual but notable increase in the region’s share of total U.S. outbound investment—from 14% to 16%—signaling a deepening investor confidence in Asia Pacific’s long-term economic trajectory. This trend is even more pronounced in the U.S. Direct Investment Abroad (USDIA) activities of American multinational enterprises (MNE). The proportion of net assets allocated to property, plant, and equipment (PP&E) in Asia Pacific rose from 23% in 2009 to 29% in 2022, with the absolute value increasing from approximately US$290 billion to US$450 billion. If this trajectory persists, PP&E investments in the region are projected to reach US$600 billion by 2030, reinforcing Asia Pacific’s role as a strategic hub for U.S. MNE investments. The data centre sector exemplifies this broader investment momentum. U.S.-based colocation providers and investors currently account for 23% of operational colocation capacity in Asia Pacific. Their influence is even more pronounced in the development pipeline, where they represent 29% of capacity under construction or planned. Beyond colocation, major U.S. hyperscale cloud providers have committed significant capital to self-build infrastructure programs, further accelerating digital infrastructure demand across the region. Geographically, U.S. data centre investments are concentrated in markets that are also the largest data centre markets in Asia Pacific— Japan (23%), Australia (21%), Malaysia (18%), Chinese mainland (14%), and India (10%). Collectively, these markets represent 86% (5.4 GW) of the total operational, under construction, and planned capacity by the U.S. colocation operators and investors. Several macroeconomic and structural factors underpin this strategic focus: Asia Pacific is home to 56% of the global population, boasts robust GDP growth projections, and continues to experience rapid digital adoption, rising consumption, and expanding investment opportunities. These dynamics position the region as a compelling destination for sustained U.S. capital deployment, particularly in sectors aligned with digital transformation and infrastructure modernisation.

Forecast 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 U.S. Direct Investment Position Abroad US$ billion 14.1% 15.2% 14.6% 15.3% 15.5% 15.9% 16.0% 15.7% 15.4% 15.2% 15.8% 15.5% 15.8% 15.5% 16.1% 16.2% 16.4% 16.5% 16.7% 16.8% 17.0% 17.1%

Rest of World

Asia Pacific

APAC Share

U.S. Investments in Net Property, Plant & Equipment

US$ billion

1,000 1,200 1,400 1,600 1,800 2,000

Forecast

33% 34%

32% 33%

31% 31%

30% 30%

28% 29%

27% 26% 27%

0 200 400 600 800

25% 24% 24% 24% 24% 25% 25%

23% 24%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Rest of World

Asia Pacific

APAC Share

Source: BEA, Cushman & Wakefield APAC DCG

*Source: Bureau of Economic Analysis (BEA), Government of the U.S.

7