Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Fitzalan-Howard views the preliminary investments as placing the structure for more AI facilities rollouts in the region. “However, dealing with diverse governing structures and adjusting to US export manages on AI chips remain important factors in maximising Apac’s opportunities in this quickly advancing field,” he proceeds.
Apac is expected to include 4,174 MW of capacity by 2027, supported by US$ 58.7 billion in planned financial investments over the very same period. Key contributors include Tokyo, which is projected to see US$ 4.1 billion in investments over the following two years that will underpin 25% (295 MW) of capability growth.
Across the causeway, Singapore continues to be a key data centre market in spite of governing and land constraints. Nonetheless, the report accentuate that with vacant rates below 1%, transactions in the city-state have actually shifted towards smaller sized agreements, in tandem with a surge in prices.
Johor is additionally on the right track for additional rapid expansion. Knight Frank estimates the southerly Malaysian state will see 85% (335 MW) capability development by 2027, supported by US$ 4.7 billion in investment.
International transaction prices 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) dominated data centre ventures, with some US$ 15.5 billion, or 70%, of cross-border data centre deals happening in the region.
The buoyant outlook reflects mounting need for AI-optimised facilities, cloud solutions and enterprise electronic initiatives. Knight Frank projects that international data centre capacity will increase 46%, or 20,828 megawatts (MW), over the following two years. By 2030, it predicts capability can expand by 177%.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, says that the Apac information centre industry will include regarding 8 gigawatts of brand-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 Tier 3 status under United States AI diffusion rules, the pipeline stands for US$ 24 billion in capital investment and 20 to 30 million sq ft of realty, he includes.
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The global information centre market is set to see quick development in the coming 5 years, keeping a solid rebound in 2024. According to Knight Frank’s newest Global Information Centres Report, worldwide information centre property transaction quantity recovered from an interest rate-hike led downturn in 2023 to hit US$ 31.8 billion ($42.9 billion) in 2024, up 118% y-o-y.
The rise in international information hub market activity is expected to continue in the coming years. Knight Frank approximates that the market will notch an annual CAGR of 18% over the following five years, propelling it to strike US$ 4 trillion by 2030.
