Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Johor is also on course for further fast growth. Knight Frank approximates the southern Malaysian state will certainly see 85% (335 MW) capability growth by 2027, supported by US$ 4.7 billion in investment.
Across the embankment, Singapore stays a key information centre market in spite of regulative and land constraints. Nevertheless, the record highlights that with uninhabited rates below 1%, transactions in the city-state have actually moved towards smaller offers, in tandem with an upsurge in rates.
Fitzalan-Howard sees the first investments as laying the structure for more AI infrastructure rollouts in the area. “However, dealing with different regulatory frameworks and adjusting to United States export controls on AI chips continue to be necessary consider maximising Apac’s opportunities in this swiftly developing industry,” he proceeds.
Fred Fitzalan-Howard, Knight Frank’s Apac head of information centres, says that the Apac data centre market will certainly add concerning 8 gigawatts of new storage capacity over the next 3 years, with a quarter of this assigned to AI workloads. While lower than the global average due to the area’s Tier 2 or Tier 3 standing under US AI diffusion rules, the pipeline represents US$ 24 billion in capital investment and 20 to 30 million sq ft of realty, he includes.
The worldwide information centre market is readied to see quick growth in the next 5 years, following a strong recoil in 2024. According to Knight Frank’s newest Global Data Centres Report, worldwide data centre property transactions volume recovered from an interest rate-hike driven slump in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
The surge in international data hub industry activity is anticipated to proceed in the coming years. Knight Frank estimates that the market will scratch a yearly CAGR of 18% over the next 5 years, moving it to hit US$ 4 trillion by 2030.
The resilient outlook reflects mounting demand for AI-optimised infrastructure, cloud services and venture digital campaigns. Knight Frank projects that international data centre capacity will certainly increase 46%, or 20,828 megawatts (MW), over the next 2 years. By 2030, it forecasts capability could broaden by 177%.
Apac is anticipated to add 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in scheduled financial investments over the exact same time frame. Key contributors consist of 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 capability development.
Worldwide deal 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 also identified that Asia Pacific (Apac) controlled information centre ventures, with some US$ 15.5 billion, or 70%, of cross-border data centre deals happening in the area.
