Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
The rise in worldwide information hub industry activity is expected to proceed in the coming years. Knight Frank approximates that the market is going to notch an annual CAGR of 18% over the following five years, pushing it to hit US$ 4 trillion by 2030.
Johor is likewise on track for further fast expansion. Knight Frank approximates the southern Malaysian state will see 85% (335 MW) ability growth by 2027, backed by US$ 4.7 billion in financial investment.
Fitzalan-Howard views the preliminary financial investments as laying the structure for more AI infrastructure rollouts in the region. “However, resolving varied regulatory structures and adapting to US export controls on AI chips stay important factors in maximising Apac’s possibilities in this rapidly developing market,” he proceeds.
Across the causeway, Singapore continues to be a key information centre market despite regulatory and land constraints. Nevertheless, the record emphasize that with vacant rates lower 1%, transactions in the city-state have moved towards smaller deals, in tandem with an upsurge in prices.
Apac is anticipated to include 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in scheduled investments over the very same time frame. Key factors consist of Tokyo, which is projected to see US$ 4.1 billion in investments over the next 2 years that will underpin 25% (295 MW) of capacity growth.
The worldwide data facility market is readied to see fast growth in the coming five years, keeping a strong recoil in 2024. According to Knight Frank’s latest Global Data Centres Report, worldwide data centre realty transaction quantity recuperated from an interest rate-hike led downturn in 2023 to reach US$ 31.8 billion ($42.9 billion) in 2024, up 118% y-o-y.
Sora Condo Chip Eng Seng & Singhaiyi Group
Fred Fitzalan-Howard, Knight Frank’s Apac head of information centres, says that the Apac data centre market will certainly include regarding 8 gigawatts of new capacity over the following three years, with a quarter of this alloted to AI workloads. While lower than the global standard due to the area’s Rate 2 or Rate 3 status under United States AI diffusion rules, the pipeline stands for US$ 24 billion in capital investment and 20 to 30 million sq ft of property, he adds.
The buoyant outlook reflects mounting demand for AI-optimised framework, cloud solutions and venture digital initiatives. Knight Frank projects that worldwide data hub capacity will certainly increase 46%, or 20,828 megawatts (MW), over the following 2 years. By 2030, it predicts capacity can expand by 177%.
International purchase values equated US$ 75.4 million in 2024, up 15% y-o-y and 44% greater than pre-Covid levels in 2019. Knight Frank’s research also found that Asia Pacific (Apac) dominated data centre financial investments, with some US$ 15.5 billion, or 70%, of cross-border information centre deals happening in the region.
