Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Fred Fitzalan-Howard, Knight Frank’s Apac head of information centres, says that the Apac data centre industry will certainly add concerning 8 gigawatts of brand-new capacity over the next 3 years, with a quarter of this dedicated to AI workloads. While lower than the global average as a result of the region’s Rate 2 or Rate 3 status under US AI diffusion rules, the pipeline stands for US$ 24 billion in capital expenditure and 20 to 30 million sq ft of realty, he adds.
Across the causeway, Singapore remains a key data centre market in spite of governing and land constraints. However, the record highlights that with uninhabited rates below 1%, transactions in the city-state have changed towards smaller sized offers, in tandem with a rise in rates.
Fitzalan-Howard sees the first financial investments as laying the foundation for even more AI facilities rollouts in the area. “However, addressing different regulatory frameworks and adjusting to United States export controls on AI chips remain essential consider maximising Apac’s opportunities in this rapidly advancing industry,” he proceeds.
Worldwide transaction worths 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 spotted that Asia Pacific (Apac) dominated data centre ventures, with some US$ 15.5 billion, or 70%, of cross-border data centre deals happening in the area.
The buoyant outlook reflects mounting demand for AI-optimised facilities, cloud solutions and venture digital efforts. Knight Frank projects that international data centre capacity will spike 46%, or 20,828 megawatts (MW), over the following two years. By 2030, it anticipates capability might expand by 177%.
Johor is likewise on track for more rapid development. Knight Frank estimates the southerly Malaysian state will certainly see 85% (335 MW) capacity development by 2027, supported by US$ 4.7 billion in financial investment.
The rise in global information hub market activity is anticipated to proceed in the coming years. Knight Frank approximates that the market is going to scratch a yearly CAGR of 18% over the next five years, moving it to reach US$ 4 trillion by 2030.
Apac is anticipated to add 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in scheduled investments over the same time frame. Key contributors include Tokyo, that is forecasted to see US$ 4.1 billion in financial investments over the next two years that will underpin 25% (295 MW) of capacity development.
The global data centre market is readied to see quick development in the upcoming 5 years, following a good rebound in 2024. According to Knight Frank’s newest Global Information Centres Report, worldwide information centre real estate transactions quantity recovered from an interest rate-hike pushed downtrend in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
