APAC Data Centre Pipeline Hits Record 19.4GW on AI-Driven Demand: C&W

Asia Pacific’s data centre development pipeline reached a record 19.4 gigawatts in 2025 as hyperscale and artificial intelligence demand pushed the sector into a new phase of large-scale delivery, according to Cushman & Wakefield.

The region had 3.7GW under construction and a further 15.7GW in planning at year-end, with Southeast Asia accounting for 31 percent of active builds, the consultancy said in its latest update. Strong hyperscale activity in Malaysia, Thailand and Indonesia is anchoring growth, positioning the region for a major delivery cycle in 2026 as cloud and AI platforms expand their deployment footprints.

Operational capacity rose to 13.8GW in 2025, with Malaysia and India accounting for 58 percent of new supply, reflecting rapid expansion in hubs like Johor and Mumbai. Johor more than doubled its live capacity to 897 megawatts during the year and is backed by one of the region’s deepest pipelines, while Mumbai posted a 42 percent increase to 768MW and continues to lead India’s future supply.

“Asia Pacific’s data centre market is in delivery mode,” said Andrew Green, head of C&W’s APAC data centre group. “We’re seeing AI‑ready capacity delivered at unprecedented scale across the region. Markets like Johor, Mumbai and Bangkok are now central to deployment strategies, while Southeast Asia and India continue to mature rapidly as hyperscale anchors.”

Vacancy Tightens

Despite the surge in new capacity, vacancy tightened to 10.9 percent in the second half of 2025 from 12.4 percent a year earlier, underscoring strong absorption across the region, according to the report.

Capital market activity remained resilient, with institutional investors continuing to target digital infrastructure, though funding strategies have become more disciplined and focused on scale and demand visibility, C&W said.

The second half of 2025 saw one of the region’s largest single-asset data centre transactions, with Keppel DC REIT agreeing to acquire a hyperscale facility in Greater Tokyo for JPY 82.1 billion ($551 million).

The Inzai City asset, developed by Colt Data Centre Services and leased to Microsoft on a long-term contract, marked the Singapore-listed trust’s second investment in Japan following the 2024 acquisition of a western Tokyo data centre.

India Passes Japan

Mainland China remains the largest data centre market in the region, accounting for 39 percent (4.6GW) of operational capacity, while India (1.5GW) has overtaken Japan to become the second largest by live supply, according to the C&W report.

Southeast Asia, meanwhile, is emerging as the fastest-growing subregion, led by Malaysia’s Johor corridor, which has become a focal point for hyperscale deployments due to its proximity to Singapore and access to power.

In C&W’s data centre maturity index, Johor ranked as the region’s top market by combined scale and growth potential, surpassing traditional hubs like Tokyo and Beijing.

Melbourne moved into the “powerhouse” category of leading hubs, while Osaka advanced into the established tier, reflecting a broadening of development activity beyond traditional core markets.

Looking ahead, Cushman expects demand to accelerate further in 2026, driven by continued growth in AI workloads, cloud expansion and enterprise digitalisation, reinforcing data centres as a core infrastructure asset class across Asia Pacific.

“Across Asia Pacific, we’re seeing governments recalibrate policies to balance digital infrastructure growth with power and sustainability priorities,” said Pritesh Swamy, C&W’s APAC data centre research head. “This marks a broader shift toward energy‑efficient, AI‑ready development that supports long‑term expansion.”