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Home Technology

Data center demand continues in Asia Pacific

FutureCIO Editors by FutureCIO Editors
April 17, 2024
Photo by panumas nikhomkhai from Pexels: https://www.pexels.com/photo/the-heart-and-importance-of-a-network-server-is-a-matter-of-feeling-right-and-fast-in-the-operation-of-the-computer-19166565/

Photo by panumas nikhomkhai from Pexels: https://www.pexels.com/photo/the-heart-and-importance-of-a-network-server-is-a-matter-of-feeling-right-and-fast-in-the-operation-of-the-computer-19166565/

Singapore and Hong Kong remain in the Asia Pacific (APAC) Top 10 Established markets for data center demands, according to the annual Global Data Center Market Comparison report of Cushman & Wakefield. However, both have fallen out of the global ranking because of their limited land supply. 

Hong Kong’s data center demand

John Siu

John Siu, managing director and Hong Kong lead of Asia Pacific Data Centre Advisory Team at Cushman & Wakefield, considers Hong Kong a major player in APAC.

“The demand for high-tier data centers in Hong Kong remains robust, driven by the need to support cloud computing services…With continuous technological advancements and a surge in hyperscale activity, Hong Kong's data center market is poised to become a dynamic hub for cutting-edge services, fostering long-term growth and global competitiveness,” he said. 

Established and emerging markets

Japanese markets outranked other Asia Pacific counterparts in both the Established and Emerging market categories. Tokyo ranked third globally in the Established Markets category. Mumbai placed seventh, and Sydney ninth. Osaka ranked fourth in the Emerging markets category, Hyderabad ranked eighth place, and Bangkok tenth. 

The report sees existing data center capacity in Asia Pacific double from 10.6 GW operational capacity, with an additional 13.3 GW expected in the next five to seven years. 

Vivek Dahiya

“Hyperscale activity has continued to add significant capacity to pipelines across markets like Mumbai, Tokyo, Sydney, and Jakarta. As with other regions, we are also seeing growing interest in smaller markets. Emerging markets, including Osaka, Hyderabad, Johor, and Bangkok, in particular, are seeing growth. At a country level, Singapore is on track to join mainland China, Japan, Australia, and India as markets with over 1GW in operational capacity in 2024,” Vivek Dahiya, managing director and head of Asia Pacific Data Centre Advisory Team at Cushman & Wakefield said.

Related:  Singapore unveils cloud, data centre service guidelines as it readies new regulation
Tags: Cushman & Wakefielddata centerdata center capacitydata center demandemerging market
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