APAC Data Centre Operating Capacity Tops 10GW

The operational capacity of Asia Pacific data centres passed the 10-gigawatt mark in the second half of 2023 as regional markets added 800 megawatts of new supply, according to Cushman & Wakefield.

The region’s operational capacity reached 10.6GW in the July-December period, with 3.9GW under construction, the property consultancy said in its latest APAC Data Centre Update. Some 9.4GW is in the planning stages, up 900MW since the end of last year’s first half.

Nearly 80 percent of operational capacity is concentrated in the region’s top five markets, namely mainland China (3.9GW), Japan (1.3GW), Australia (1.2GW), India (1.1GW) and Singapore (962MW). For purpose of comparison, the world’s largest data centre market, America’s Northern Virginia, has 4.6GW of operational capacity.

India joined mainland China, Japan and Australia as 1GW-plus markets in the second half of 2023, and Cushman anticipates Singapore reaching this status “sometime in 2024”.

India, Japan Eyeing 3GW Club

More than half of the region’s under-construction activity is concentrated in mainland China and India, according to the report. With a development pipeline of 2.9GW in India and 1.7GW in Japan, the two markets are on track to join China as APAC’s only markets to exceed 3GW of operational capacity in the next five years.

“However, due to the ongoing issues with power availability in Japan, especially in Tokyo, there may be delays in the overall timeline for the market to reach this milestone,” Cushman said.

Mumbai remains the undisputed data centre capital of India, accounting for more than half of operational capacity in Asia’s most populous country and close to half of the total development pipeline of under-construction projects and planned activity.

Billionaire Gautam Adani’s flagship holding company has pledged to invest INR 500 billion ($6 billion) to develop and operate hyperscale data centres in India’s Maharashtra state — including Mumbai, its Navi Mumbai offshoot and the industrial hub of Pune — over the next 10 years.

Adani Group and EdgeConneX, a hyperscale specialist backed by Swedish private equity firm EQT, have been working with lenders to build a $600 million debt war chest to fuel their AdaniConneX joint venture, including the $400 million they are reportedly seeking to borrow offshore. The platform aims to build a 1GW portfolio by 2030.

In Greater Tokyo, meanwhile, AirTrunk began construction last year on the third phase of TOK1, the Sydney-based firm’s massive data centre project in Chiba prefecture’s Inzai. The new facility has a planned IT load capacity in excess of 300MW.

Malaysia Heats Up

Cushman identified Malaysia as the fastest-growing data centre market in Asia Pacific, with Kuala Lumpur and Johor showing increased activity.

Boasting a development pipeline of 1.2GW, the Southeast Asian nation can expect 600 percent growth in the next five years from its current operational capacity of 189MW, the report said.

EdgeConneX made a splash last September with news that it was entering Malaysia with a plan to develop 300MW of capacity across the Kuala Lumpur area.