Asia-Pacific set for $280B data center buildout by 2030
According to a report from Cushman & Wakefield, Asia-Pacific could attract about $280 billion in data center investment between now and 2030. The region is already the world’s fastest-growing data center market and ranks second only to North America in installed capacity.
Even so, APAC remains the most underserved region globally: it is home to roughly 60% of the world’s population but only 22% of operating data center capacity. The shortage is especially acute in Vietnam, the Philippines and Indonesia. Although 2,200MW of new colocation capacity came online over the past year, vacancy rates tightened, indicating that demand is still running ahead of supply.
Another 22.7GW of colocation capacity is already in the pipeline, supported by strong pre-leasing activity. That points to sustained growth over the next three to five years. Vikram Kumar, head of APAC infrastructure at the International Finance Corp., said expansion is moving beyond established hubs such as Singapore and Malaysia into Thailand, Indonesia, the Philippines and India, as hyperscalers and operators chase power, land, connectivity and rising domestic demand.
A key difference from the US and Europe is the regulatory backdrop. In those markets, data center projects are increasingly facing public backlash and delays. In Asia-Pacific, opposition exists, but not at the same scale. Instead, governments are focusing on tighter environmental controls rather than outright resistance.
Singapore is a clear example. The city-state imposed a moratorium on new data centers in 2019 because of land constraints and the sector’s energy and water use. It lifted the moratorium in 2022, approved 80MW of new capacity, and last Friday gave the green light to four more companies: Digital Realty, Equinix, Keppel Data Centers and ST Telemedia Global Data Centers.
Those operators are allowed to add another 200MW of capacity and must commit to using green energy for more than 50% of their operations, according to Singapore’s IMDA. The government is also advancing a new digital infrastructure bill that will further tighten environmental standards.
In neighboring Johor, the center of Malaysia’s data center boom, authorities have stopped approving projects that do not meet power and water efficiency requirements. After absorbing US$36 billion in data center investment between 2021 and 2025, the state began imposing limits last year to filter out speculative projects.
Australia is moving in the same direction. Last month, the government unveiled plans to require new data centers to source their own clean energy and limit water consumption. After two state governments said they would ignore the guidelines to allow more fuel-based energy, the federal government accelerated drafting of the law, which the national cabinet is due to discuss this week.