Asia Pacific Data Centre Investment Landscape

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ASIA PACIFIC DATA CENTRE INVESTMENT LANDSCAPE

CapEx Requirements

Total Investment Required for Developing the Capacity in Pipeline (includes land cost)

US$ million

79% Share

21% Share

CapEx Required 2025 – 2030 APAC $156 BN

50,000

46,759

The Asia Pacific region currently has ~13GW of data centre capacity in the development pipeline expected to become operational by 2030. The estimated CapEx required for this buildout is US$156 billion, underscoring the significant growth potential and relative cost efficiency of the Asia Pacific region. In addition to greenfield developments, there is a growing need for upgrading and modernising existing assets, particularly those over five years old. Rapid advances in computing, driven by cloud, AI, and high-performance workloads, have dramatically increased rack density requirements. Standard workloads now exceed 10kW per rack (up from under 6kW), while cloud deployments range between 15–30kW, and AI workloads exceed 60kW, with leading operators exploring densities >100kW. This shift is creating substantial demand for upgrades, particularly in power, cooling, and structural capacity. Over the past 2–3 years, operators have adopted diverse capital strategies to meet growing funding needs. Private equity has played a prominent role, deploying capital through both asset and platform acquisitions. Simultaneously, real estate developers have entered the sector, delivering built-to-suit facilities for operators. Strategic partnerships between developers and operators have also emerged, facilitating risk-sharing and efficient market entry, especially in high-demand regions. For investors, the data centre sector in Asia Pacific presents a compelling opportunity—characterised by strong underlying demand, long-term digital infrastructure needs, and attractive risk-adjusted returns through diversified investment structures and partnerships.

45,000

40,000

35,000

30,000

25,000

21,020 20,384

19,724

20,000

15,522

15,000

USA $91 BN

9,082 8,615

10,000

5,489

5,000

2,192

1,811

1,785 1,385

994

755

0

Japan Australia Malaysia India Chinese Mainland

Hong Kong, China

South Korea

Indonesia Thailand New Zealand

Singapore Taiwan, China

Philippines Vietnam

Avg. Const. Cost/MW excl. land

13.2 9.6 8.8 7.1

7.1

9.4 9.5 9.0 7.7 9.3 11.7 6.4 7.0 6.9

Source: Cushman & Wakefield APAC DCG

The cumulative CapEx required for developing the pipeline in APAC is estimated to be 1.7x of the U.S. • While the development pipeline in each market drives the overall CapEx requirements, the average development cost varies significantly across markets ranging between US$7.1 million per MW in Vietnam to US$16.1 million per MW in Japan. • Japan accounts for ~30% share in the total CapEx required for the development of the capacity in pipeline in Asia Pacific. • About 79% of the required CapEx is expected to be deployed in the top five markets - Japan, Australia, Malaysia, India, and Chinese mainland. • About 18% of the development pipeline capacity is already in active development. • Beyond 2030, and based on land banking by operators, the need for CapEx deployment will continue.

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