This year’s Asia Pacific data centre market at a glance

More companies are beginning to invest in data centre infrastructure management 

The technology boom, big data, and high data storage demand are key drivers in companies investing in data centres. Tavarius/Shutterstock

There has been significant growth in the data centre market over the last few years. These are emerging as attractive real estate investments and it has been flourishing in four key countries in the Asia Pacific. These are Australia, Hong Kong SAR, Japan, and Singapore.

Singapore is at the top of Cushman & Wakefield’s APAC Data Centre Marketing Ranking.

According to research conducted by CBRE’s team, several factors play huge roles in becoming a data centre hub. These include construction costs, government policies, network infrastructure, as well as Internet and e-commerce penetration.

More companies are beginning to invest in data centre infrastructure management because of the technology boom, big data, and high data storage demand.

Globally, the country is tied for second place with Silicon Valley.

“Singapore is one of the tightest data centre markets globally with vacancy rates below 2 percent. Crippled supply due to the ongoing moratorium coupled with strong demand has driven up data centre prices since 2020. Current pricing is around SGD200–SGD400 kilowatt-per-hour/month for the few small availabilities,” said Brenda Ong, executive director for logistics and industrial at Cushman & Wakefield.

More: China hatches scheme to build 4 low-carbon mega data centre clusters

Hong Kong rejoins the global list of data centre markets, placing sixth in Cushman & Wakefield’s 2022 Data Centre Global Market Comparison report. It also ranks second in the Asia Pacific.

“The horizon for the data centre industry across the Asia Pacific region is exceptionally bright, thanks to deep hyperscale demand and the billions of dollars in development in progress to support these key tenants,” said Kevin Imboden, Cushman & Wakefield’s senior research manager for data centre insights. “The 1.3 gigawatts under construction in the APAC markets reviewed is a small fraction of what is in planning regionally, with much action and growth coming over the next decade.”

Other countries that are gaining momentum include mainland China, India, and Indonesia. As for emerging markets, Thailand and Vietnam are viewed as high potential markets because of increasing local needs.

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

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