Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
The rise in international information hub industry activity is expected to continue in the coming years. Knight Frank estimates that the market will scratch an annual CAGR of 18% over the following 5 years, moving it to strike US$ 4 trillion by 2030.
International deal worths 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 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 region.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, states that the Apac data centre market will include regarding 8 gigawatts of brand-new capacity over the next 3 years, with a quarter of this alloted to AI workloads. While less than the global average as a result of the area’s Tier 2 or Tier 3 standing under US AI diffusion rules, the pipeline represents US$ 24 billion in capital expenditure and 20 to 30 million sq ft of realty, he includes.
Johor is also on track for more quick growth. Knight Frank estimates the southerly Malaysian state will certainly see 85% (335 MW) ability growth by 2027, supported by US$ 4.7 billion in financial investment.
The buoyant outlook reflects mounting need for AI-optimised infrastructure, cloud solutions and enterprise electronic initiatives. Knight Frank projects that global information hub capacity will increase 46%, or 20,828 megawatts (MW), over the next two years. By 2030, it anticipates capability can broaden by 177%.
Apac is anticipated to add 4,174 MW of capacity by 2027, supported by US$ 58.7 billion in planned financial investments over the same time frame. Key factors include Tokyo, that is predicted to see US$ 4.1 billion in financial investments over the following 2 years that will underpin 25% (295 MW) of capacity growth.
Fitzalan-Howard views the first financial investments as laying the structure for even more AI facilities rollouts in the region. “Nevertheless, attending to diverse regulative structures and adapting to US export manages on AI chips stay necessary consider maximising Apac’s opportunities in this quickly advancing field,” he proceeds.
The international information centre market is set to see fast development in the next 5 years, following a good recoil in 2024. According to Knight Frank’s latest Global Data Centres Report, worldwide information centre property operation volume got better from an interest rate-hike pushed slump in 2023 to reach US$ 31.8 billion ($42.9 billion) in 2024, up 118% y-o-y.
Throughout the embankment, Singapore continues to be a key information centre market in spite of regulative and land constraints. However, the report emphasize that with uninhabited rates below 1%, transactions in the city-state have actually shifted towards smaller sized offers, in tandem with an upsurge in prices.
