Why the hyperscale data centre market could be the next big thing in APAC | Real Estate Asia
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Why the hyperscale data centre market could be the next big thing in APAC

APAC accounts for over a quarter of the global hyperscale data centre capacity.

A JLL report says data centres are the hidden infrastructure underpinning all digital activity. Smartphone-based application demand has driven an appetite for more digital infrastructure. According to Structure Research, the global hyperscale market is expected to grow at a five-year CAGR of approximately 20% from 2021 to 2026. 

The DC market, according to JLL, is dominated by 10 to 15 cloud service providers, over-the-top media services and hyperscalers, which are driving global demand and scaling up on size and efficiency. The number of hyperscale data centres increased from 259 in 2015 to 700 in 2021 globally, as estimated by Synergy Research Group. APAC accounts for 26% of global hyperscale data centre capacity.

Here’s more from JLL:

Globally, 314 new hyperscale sites are in development, and at the end of 2024, the number of hyperscale sites will pass 1,000. The US is expected to remain the centre for hyperscale developments. However, APAC countries - China, India and Australia - are also witnessing robust growth. The demand for hyperscale data centres will increase owing to the growing public cloud services market revenues. 

Data centre demand and investment activity in APAC are escalated by a dramatic rise in data consumption in the region. Yet, it has not attained its full potential yet. In fact, if APAC data consumption per capita is the same as the US, the APAC data centre market can grow seven folds in MW capacity.

 

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