Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Apac is expected to include 4,174 MW of capacity by 2027, supported by US$ 58.7 billion in planned financial investments over the same time frame. Key contributors consist of Tokyo, that is projected to see US$ 4.1 billion in financial investments over the next 2 years that will underpin 25% (295 MW) of capacity development.
Johor is also on course for further fast expansion. Knight Frank approximates the southern Malaysian state will certainly see 85% (335 MW) capability growth by 2027, backed by US$ 4.7 billion in investment.
The resilient outlook reflects mounting demand for AI-optimised facilities, cloud solutions and enterprise electronic initiatives. Knight Frank projects that international information centre capacity will increase 46%, or 20,828 megawatts (MW), over the next two years. By 2030, it anticipates capacity could expand by 177%.
The surge in worldwide information centre industry activity is anticipated to carry on in the coming years. Knight Frank approximates that the marketplace will scratch a yearly CAGR of 18% over the next five years, pushing it to strike US$ 4 trillion by 2030.
The worldwide data center market is readied to see quick growth in the coming five years, keeping a strong rebound in 2024. According to Knight Frank’s newest Global Data Centres Report, worldwide data centre realty operation volume recovered from an interest rate-hike pushed downturn in 2023 to reach US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
Fitzalan-Howard views the initial investments as setting the foundation for more AI facilities rollouts in the area. “Nonetheless, attending to diverse regulative frameworks and adjusting to US export regulates on AI chips continue to be crucial factors in increasing Apac’s possibilities in this rapidly developing industry,” he proceeds.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, states that the Apac information centre market will certainly add about 8 gigawatts of brand-new capacity over the next 3 years, with a quarter of this alloted to AI workloads. While lower than the global standard as a result of the area’s Rate 2 or Rate 3 status under United States AI diffusion rules, the pipeline stands for US$ 24 billion in capital investment and 20 to 30 million sq ft of property, he includes.
Across the embankment, Singapore stays a key information centre market in spite of governing and land restraints. Nonetheless, the report emphasize that with vacant rates below 1%, transactions in the city-state have actually shifted towards smaller deals, in tandem with an upsurge in pricing.
Worldwide purchase values equated US$ 75.4 million in 2024, up 15% y-o-y and 44% higher than pre-Covid levels in 2019. Knight Frank’s research study also identified that Asia Pacific (Apac) dominated data centre financial investments, with some US$ 15.5 billion, or 70%, of cross-border data centre deals occurring in the region.
