Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
The worldwide information center market is readied to see rapid growth in the coming five years, following a good rebound in 2024. According to Knight Frank’s latest Global Information Centres Report, worldwide information centre property transactions volume bounced back from an interest rate-hike pushed slump in 2023 to hit US$ 31.8 billion ($42.9 billion) in 2024, up 118% y-o-y.
Fitzalan-Howard sees the preliminary financial investments as placing the structure for even more AI infrastructure rollouts in the region. “Nonetheless, addressing varied regulatory frameworks and adjusting to US export controls on AI chips continue to be necessary factors in increasing Apac’s opportunities in this quickly progressing field,” he continues.
The resilient outlook reflects mounting demand for AI-optimised facilities, cloud services and venture digital initiatives. Knight Frank projects that global information centre capacity will certainly increase 46%, or 20,828 megawatts (MW), over the following two years. By 2030, it forecasts ability might broaden by 177%.
Throughout the causeway, Singapore stays a key data centre market despite governing and land constraints. Nonetheless, the record emphasize that with vacant rates lower 1%, transactions in the city-state have actually moved towards smaller deals, in tandem with a surge in prices.
Fred Fitzalan-Howard, Knight Frank’s Apac head of information centres, mentions that the Apac data centre industry will include regarding 8 gigawatts of new storage capacity over the following three years, with a quarter of this assigned to AI workloads. While lower than the global average due to the region’s Rate 2 or Rate 3 standing under US AI diffusion rules, the pipeline stands for US$ 24 billion in capital investment and 20 to 30 million sq ft of property, he adds.
Johor is additionally on the right track for additional rapid expansion. Knight Frank approximates the southern Malaysian state will certainly see 85% (335 MW) capacity growth by 2027, backed by US$ 4.7 billion in investment.
The surge in international data facility industry activity is expected to proceed in the coming years. Knight Frank approximates that the market is going to scratch an annual CAGR of 18% over the next 5 years, pushing it to reach US$ 4 trillion by 2030.
Worldwide purchase values 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) dominated information centre ventures, with some US$ 15.5 billion, or 70%, of cross-border data centre deals happening in the area.
Apac is expected to include 4,174 MW of capacity by 2027, supported by US$ 58.7 billion in scheduled financial investments over the very same period. Key contributors consist of Tokyo, which is forecasted to see US$ 4.1 billion in investments over the next two years that will underpin 25% (295 MW) of capability growth.
