Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Apac is anticipated to add 4,174 MW of capacity by 2027, supported by US$ 58.7 billion in planned financial investments over the exact same time frame. Key factors consist of Tokyo, which is forecasted to see US$ 4.1 billion in financial investments over the following two years that will underpin 25% (295 MW) of capacity growth.
Fitzalan-Howard sees the first investments as placing the structure for more AI framework rollouts in the area. “Nevertheless, resolving diverse governing structures and adjusting to US export regulates on AI chips remain vital consider maximising Apac’s chances in this swiftly advancing industry,” he proceeds.
Fred Fitzalan-Howard, Knight Frank’s Apac head of information centres, mentions that the Apac information centre market will certainly add concerning 8 gigawatts of brand-new storage capacity over the next 3 years, with a quarter of this alloted to AI workloads. While lower than the global standard as a result of the area’s Tier 2 or Rate 3 condition under US AI diffusion rules, the pipeline represents US$ 24 billion in capital expenditure and 20 to 30 million sq ft of property, he adds.
The buoyant outlook reflects mounting need for AI-optimised facilities, cloud solutions and enterprise electronic efforts. Knight Frank projects that worldwide data hub capacity will certainly spike 46%, or 20,828 megawatts (MW), over the following 2 years. By 2030, it predicts capability could expand by 177%.
Throughout the embankment, Singapore remains a key information centre market regardless of regulatory and land restraints. However, the report emphasize that with vacant rates below 1%, transactions in the city-state have changed towards smaller offers, in tandem with a rise in pricing.
The surge in international information hub industry activity is anticipated to proceed in the coming years. Knight Frank approximates that the market is going to scratch an annual CAGR of 18% over the next 5 years, pushing it to reach US$ 4 trillion by 2030.
International purchase values averaged US$ 75.4 million in 2024, up 15% y-o-y and 44% greater than pre-Covid levels in 2019. Knight Frank’s research study also identified that Asia Pacific (Apac) dominated information centre investments, with some US$ 15.5 billion, or 70%, of cross-border data centre deals happening in the region.
Johor is also on track for more quick expansion. Knight Frank approximates the southerly Malaysian state will certainly see 85% (335 MW) capability development by 2027, backed by US$ 4.7 billion in investment.
The global information center market is readied to see fast growth in the upcoming 5 years, following a strong rebound in 2024. According to Knight Frank’s latest Global Data Centres Report, worldwide information centre real estate operation volume got better from an interest rate-hike driven downturn in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
