Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
The rise in international data facility market activity is anticipated to proceed in the coming years. Knight Frank approximates that the market is going to notch an annual CAGR of 18% over the following five years, propelling it to hit US$ 4 trillion by 2030.
Apac is anticipated to include 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in planned investments over the same period. Key factors include Tokyo, that is projected to see US$ 4.1 billion in financial investments over the next two years that will underpin 25% (295 MW) of capability development.
International deal prices equated 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 spotted 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 region.
Fred Fitzalan-Howard, Knight Frank’s Apac head of information centres, says that the Apac data centre industry will include regarding 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 standard because of the region’s Tier 2 or Rate 3 status under United States AI diffusion rules, the pipeline represents US$ 24 billion in capital investment and 20 to 30 million sq ft of property, he adds.
Fitzalan-Howard sees the first financial investments as setting the foundation for even more AI facilities rollouts in the area. “However, attending to diverse governing structures and adapting to US export controls on AI chips remain essential factors in maximising Apac’s opportunities in this rapidly evolving market,” he proceeds.
The buoyant outlook reflects mounting need for AI-optimised facilities, cloud services and business electronic campaigns. Knight Frank projects that global data hub capacity will certainly spike 46%, or 20,828 megawatts (MW), over the following 2 years. By 2030, it anticipates capability might expand by 177%.
Johor is also on course for more fast development. Knight Frank approximates the southerly Malaysian state will certainly see 85% (335 MW) capacity development by 2027, supported by US$ 4.7 billion in investment.
Throughout the embankment, Singapore remains a key information centre market regardless of governing and land restrictions. However, the report highlights that with vacant rates lower 1%, transactions in the city-state have actually changed towards smaller agreements, in tandem with a surge in rates.
The worldwide information center industry is readied to see fast development in the coming five years, following a solid rebound in 2024. According to Knight Frank’s latest Global Data Centres Report, worldwide information centre real estate operation volume bounced back from an interest rate-hike pushed downtrend in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
