Data centre news roundup: Power shortages and growth of AI drive data centre demand, plus more news

For PropertyGuru’s real estate news roundup, we focus on data centres. Ongoing power shortages and the growth of artificial intelligence are driving record levels of data centre demand. In other headlines, Equinix enters the Philippine market with the acquisition of three data centres. Lastly, Vantage Data Centers’ first data centre facility opens in Taiwan.

AI driving significant global data centre growth in 2024

A new report from CBRE reveals that ongoing power shortages are creating opportunities for development in emerging global data centre markets and driving up rents in established markets worldwide. Companies aiming to secure data centre capacity are increasingly investing in emerging markets like Northern Indiana, Boise (Idaho), Mumbai (India), Rio de Janeiro (Brazil), and Oslo (Norway), which are experiencing a surge in demand for hyperscale development. CBRE anticipates that the availability of power and land resources in these areas will continue to attract investment and promote growth in the future.

“Global power shortages are driving an unprecedented surge in data centre rental rates, particularly in North America, while AI advancements are having a significant impact on data centre demand,” said Pat Lynch, executive managing director for CBRE’s Data Center Solutions. “Preleasing data centre space well in advance of completion is commonplace across the globe, which underscores the robust demand in the market and the need for ongoing investment in development.”

According to The World Property Journal, CBRE’s Global Data Center Trend Report 2024 examined key variables like total inventory, vacancy rates, net absorption, pricing and rental rates, and availability in both established and emerging markets across North America, Europe, Asia Pacific, and Latin America.

The growth of artificial intelligence is driving record levels of data centre demand and increasing the need for innovative data centre designs and technologies. This trend is leading to new developments or conversions of unused industrial spaces.

Equinix to acquire three Philippine data centres from TIM

Equinix has announced plans to acquire three data centres in the Philippines from Total Information Management (TIM), marking its entrance into the Filipino market. This move follows the company’s recent expansions in Malaysia and Indonesia and aims to support businesses in seizing digital opportunities in Southeast Asia.

The all-cash transaction is projected to close in the second half of 2024, contingent on customary closing conditions. The acquisition represents a multiple of approximately 15 times the projected EBITDA at full utilisation. Equinix aims to leverage these high-performance data centres to meet the digital needs of local and international businesses in the Philippines.

Existing TIM customers, which include network and financial services companies, will gain access to Equinix’s global ecosystems, comprising over 10,000 companies, including more than 2,000 networks and 3,000 cloud and IT service providers. This is expected to facilitate enhanced interconnectivity and data exchange within a broad network of partners and customers.

Jeremy Deutsch, President of Equinix Asia-Pacific, stated in DataCenterNews Asia: “We are thrilled to announce our expansion into the Philippines, a vibrant and rapidly expanding digital economy that presents immense opportunities for our valued customers and partners. This strategic acquisition, combined with our recent expansions in Malaysia and Indonesia, as well as the awarded data centre capacity in Singapore, will greatly enhance our footprint in the region.”

Vantage Data Centers opens new facility in Taiwan

Hyperscale data centre provider, Vantage Data Centers, has announced the opening of its first data centre facility – TPE11 – in Taiwan’s Taipei City.

iTnews Asia reports that TPE11 will deliver 16MW of IT capacity to support cloud and high-density deployments. Equipped with liquid cooling technology, the facility will support artificial intelligence (AI) and data-intensive applications.

Vantage’s APAC president, Raymond Tong, said Taipei demands hyperscale data centres to power next-generation applications, cloud transformation, and AI adoption. The Taipei data centre will fulfil customer demand and enable the region’s digitalisation, Tong added.

The Property Report editors wrote this article. For more information, email: [email protected].