According to new research by DLA Piper, some 70% of global data centre investors and operators foresee increased investment in the sector in the next two years. Almost all respondents also predict AI, machine learning and natural language processing will drive demand for data centres.
Challenges and concerns
An overwhelming 98% of investors and operators cited concerns about the availability and reliability of power supplies when they made decisions about data centre projects. Half of the respondents identified the issue as a primary hindrance to investment.
Most (70%) respondents expect scrutiny of sustainability concerns around data centre energy and water usage and due diligence to increase over the next two years.
APAC region advancements
According to the report, the APAC region is advancing at various stages. Japan, South Korea, Australia, and Singapore are spearheading early-stage development of larger data centre projects.
"We have seen a shift towards building data centres in less traditional locations due to power constraints in major cities. Investors are interested in 'powered shell' developments, which offer infrastructure without IT hardware, providing flexibility and scalability. Despite the challenges, Asia's data centre industry is at a pivotal moment, with increasing investments in cutting-edge technologies and a strong focus on ESG practices," Susheela Rivers, head of Real Estate, Asia Pacific and Office Managing Partner of DLA Piper's Hong Kong office, said.
