Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, states that the Apac information centre industry will certainly add concerning 8 gigawatts of new storage capacity over the next 3 years, with a quarter of this assigned to AI workloads. While lower than the global standard because of the region’s Tier 2 or Rate 3 status under US AI diffusion rules, the pipeline stands for US$ 24 billion in capital expenditure and 20 to 30 million sq ft of realty, he adds.
Worldwide purchase values averaged US$ 75.4 million in 2024, up 15% y-o-y and 44% greater than pre-Covid levels in 2019. Knight Frank’s research also identified that Asia Pacific (Apac) controlled information centre investments, with some US$ 15.5 billion, or 70%, of cross-border information centre deals happening in the region.
Johor is also on the right track for additional rapid expansion. Knight Frank approximates the southern Malaysian state will certainly see 85% (335 MW) ability development by 2027, supported by US$ 4.7 billion in investment.
The worldwide information facility industry is readied to see quick growth in the next five years, following a solid rebound in 2024. According to Knight Frank’s latest Global Information Centres Report, worldwide data centre property operation volume recuperated from an interest rate-hike pushed slump in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
Throughout the causeway, Singapore remains a key information centre market regardless of regulative and land restrictions. However, the report highlights that with uninhabited rates below 1%, transactions in the city-state have changed towards smaller sized offers, in tandem with a rise in prices.
Fitzalan-Howard views the first financial investments as placing the structure for even more AI facilities rollouts in the area. “Nevertheless, resolving diverse regulative frameworks and adapting to US export controls on AI chips remain essential factors in maximising Apac’s possibilities in this quickly developing industry,” he continues.
Apac is expected to add 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in planned investments over the very same period. Key contributors consist of Tokyo, which is predicted to see US$ 4.1 billion in financial investments over the next 2 years that will underpin 25% (295 MW) of capacity growth.
The surge in global information hub industry activity is expected to continue in the coming years. Knight Frank approximates that the market is going to scratch a yearly CAGR of 18% over the following 5 years, propelling it to reach US$ 4 trillion by 2030.
The buoyant outlook reflects mounting demand for AI-optimised facilities, cloud services and venture electronic efforts. Knight Frank projects that global data centre capacity will certainly spike 46%, or 20,828 megawatts (MW), over the next 2 years. By 2030, it forecasts capability might broaden by 177%.
