Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
The surge in international information centre industry activity is anticipated to proceed in the coming years. Knight Frank approximates that the market is going to notch a yearly CAGR of 18% over the following five years, moving it to hit US$ 4 trillion by 2030.
Fitzalan-Howard views the first investments as placing the structure for more AI facilities rollouts in the region. “Nevertheless, addressing different governing frameworks and adjusting to US export manages on AI chips stay vital factors in maximising Apac’s opportunities in this swiftly evolving field,” he proceeds.
International transaction worths 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 found that Asia Pacific (Apac) dominated data centre investments, with some US$ 15.5 billion, or 70%, of cross-border information centre deals occurring in the area.
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Fred Fitzalan-Howard, Knight Frank’s Apac head of information centres, says that the Apac information centre market will certainly add about 8 gigawatts of new storage capacity over the next three years, with a quarter of this alloted to AI workloads. While lower than the global average because of the region’s Rate 2 or Tier 3 condition under United States AI diffusion rules, the pipeline stands for US$ 24 billion in capital investment and 20 to 30 million sq ft of real estate, he includes.
Johor is also on course for more quick growth. Knight Frank approximates the southern Malaysian state will certainly see 85% (335 MW) ability growth by 2027, supported by US$ 4.7 billion in investment.
The global data center industry is set to see rapid growth in the next 5 years, keeping a solid recoil in 2024. According to Knight Frank’s latest Global Data Centres Report, worldwide information centre realty transactions volume bounced back from an interest rate-hike driven downturn in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
The buoyant outlook reflects mounting demand for AI-optimised facilities, cloud solutions and enterprise digital efforts. Knight Frank projects that global data hub capacity will certainly spike 46%, or 20,828 megawatts (MW), over the next 2 years. By 2030, it anticipates capability can broaden by 177%.
Apac is expected to add 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in planned investments over the very same period. Key factors include Tokyo, that is predicted to see US$ 4.1 billion in financial investments over the following two years that will underpin 25% (295 MW) of capability development.
Across the embankment, Singapore continues to be a key data centre market regardless of regulative and land restraints. However, the report emphasize that with vacant rates lower 1%, transactions in the city-state have moved towards smaller sized deals, in tandem with a surge in prices.
