Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Apac is expected to include 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in planned investments over the same period. Key contributors consist of Tokyo, that is predicted to see US$ 4.1 billion in financial investments over the following 2 years that will underpin 25% (295 MW) of capacity development.
Across the embankment, Singapore stays a key data centre market despite regulative and land restraints. However, the report emphasize that with vacant rates lower 1%, transactions in the city-state have actually shifted towards smaller offers, in tandem with a rise in pricing.
The buoyant outlook reflects mounting need for AI-optimised facilities, cloud services and enterprise digital campaigns. Knight Frank projects that worldwide data centre capacity will certainly spike 46%, or 20,828 megawatts (MW), over the following 2 years. By 2030, it predicts capability could increase by 177%.
Fitzalan-Howard sees the first financial investments as setting the foundation for even more AI framework rollouts in the area. “However, resolving varied governing frameworks and adapting to US export manages on AI chips continue to be important consider maximising Apac’s possibilities in this rapidly developing market,” he proceeds.
Johor is also on course for further fast expansion. Knight Frank estimates the southern Malaysian state will see 85% (335 MW) ability development by 2027, supported by US$ 4.7 billion in financial investment.
International transaction worths equated US$ 75.4 million in 2024, up 15% y-o-y and 44% more than pre-Covid levels in 2019. Knight Frank’s research study also identified that Asia Pacific (Apac) dominated information centre ventures, with some US$ 15.5 billion, or 70%, of cross-border information centre deals occurring in the region.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, mentions that the Apac data centre industry will include about 8 gigawatts of new storage capacity over the next three years, with a quarter of this alloted to AI workloads. While less than the global average due to the area’s Tier 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 includes.
The international information facility market is set to see fast growth in the coming five years, keeping a strong rebound in 2024. According to Knight Frank’s latest Global Information Centres Report, worldwide information centre real estate transaction volume recuperated from an interest rate-hike led slump in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
The surge in international information facility industry activity is anticipated to continue in the coming years. Knight Frank estimates that the market will notch a yearly CAGR of 18% over the next five years, propelling it to hit US$ 4 trillion by 2030.
