Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
The worldwide information facility industry is set to see quick growth in the next 5 years, keeping a strong rebound in 2024. According to Knight Frank’s latest Global Information Centres Report, worldwide data centre realty operation volume recuperated from an interest rate-hike led downtrend in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
Across the embankment, Singapore remains a key data centre market in spite of governing and land restraints. Nevertheless, the record highlights that with uninhabited rates below 1%, transactions in the city-state have moved towards smaller sized deals, in tandem with a surge in pricing.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, mentions that the Apac data centre industry will include regarding 8 gigawatts of new capacity over the next three years, with a quarter of this alloted to AI workloads. While lower than the global standard because of the region’s Rate 2 or Rate 3 status under US AI diffusion rules, the pipeline represents US$ 24 billion in capital investment and 20 to 30 million sq ft of property, he includes.
Fitzalan-Howard sees the initial investments as placing the foundation for more AI infrastructure rollouts in the area. “Nonetheless, dealing with diverse regulative frameworks and adjusting to US export regulates on AI chips stay necessary factors in maximising Apac’s chances in this swiftly developing industry,” he continues.
International purchase values 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 study also found that Asia Pacific (Apac) controlled information centre investments, with some US$ 15.5 billion, or 70%, of cross-border information centre deals occurring in the region.
The resilient outlook reflects mounting demand for AI-optimised facilities, cloud solutions and business electronic initiatives. Knight Frank projects that global data hub capacity will increase 46%, or 20,828 megawatts (MW), over the following two years. By 2030, it forecasts capability might expand by 177%.
Johor is also on course for further fast development. Knight Frank estimates the southern Malaysian state will see 85% (335 MW) capability development by 2027, supported by US$ 4.7 billion in investment.
The rise in international data hub market activity is anticipated to continue in the coming years. Knight Frank approximates that the marketplace is going to scratch a yearly CAGR of 18% over the following 5 years, propelling it to strike US$ 4 trillion by 2030.
Apac is anticipated to include 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in planned investments over the same duration. Key contributors include Tokyo, that is predicted to see US$ 4.1 billion in financial investments over the next two years that will underpin 25% (295 MW) of capability development.
