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 scheduled financial investments over the same duration. Key contributors include Tokyo, which is forecasted to see US$ 4.1 billion in financial investments over the next two years that will underpin 25% (295 MW) of capacity growth.
Johor is likewise on course for more fast expansion. Knight Frank estimates the southern Malaysian state will certainly see 85% (335 MW) capacity development by 2027, supported by US$ 4.7 billion in investment.
International transaction prices averaged US$ 75.4 million in 2024, up 15% y-o-y and 44% higher than pre-Covid levels in 2019. Knight Frank’s research also spotted that Asia Pacific (Apac) controlled information centre financial investments, with some US$ 15.5 billion, or 70%, of cross-border information centre deals taking place in the region.
Throughout the embankment, Singapore continues to be a key data centre market regardless of regulative and land restraints. Nonetheless, the report emphasize that with uninhabited rates lower 1%, transactions in the city-state have actually moved towards smaller sized offers, in tandem with an upsurge in rates.
The surge in international data hub market activity is expected to carry on in the coming years. Knight Frank estimates that the market will notch an annual CAGR of 18% over the next 5 years, propelling it to strike US$ 4 trillion by 2030.
Fitzalan-Howard sees the first investments as placing the foundation for even more AI facilities rollouts in the area. “Nonetheless, addressing varied regulative frameworks and adapting to United States export regulates on AI chips remain crucial consider increasing Apac’s chances in this quickly developing industry,” he continues.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, states that the Apac information centre industry will certainly include about 8 gigawatts of new capacity over the next three years, with a quarter of this dedicated to AI workloads. While lower than the global average as a result of the area’s Rate 2 or Rate 3 standing under US AI diffusion rules, the pipeline stands for US$ 24 billion in capital investment and 20 to 30 million sq ft of real estate, he adds.
The buoyant outlook reflects mounting need for AI-optimised facilities, cloud solutions and business digital efforts. Knight Frank projects that international information centre capacity will certainly spike 46%, or 20,828 megawatts (MW), over the next 2 years. By 2030, it forecasts capability can expand by 177%.
The international data centre market is readied to see rapid development in the next five years, following a good rebound in 2024. According to Knight Frank’s newest Global Information Centres Report, worldwide information centre real estate operation volume bounced back from an interest rate-hike driven downturn in 2023 to reach US$ 31.8 billion ($42.9 billion) in 2024, up 118% y-o-y.
