Asia Pacific set to overtake US in data centre capacity by 2030
Asia Pacific is forecasted to surpass the United States as the largest colocation data centre market globally before 2030, according to analysis by Cushman & Wakefield.
The Asia Pacific Data Centre Investment Landscape report projects that by 2030, the region will possess approximately 23,904 MW of operational colocation capacity. In contrast, the United States is expected to have around 18,256 MW, placing APAC ahead in both capacity and projected rental revenue.
Speaking on the findings, Pritesh Swamy, Head of Insights and Analysis for Cushman & Wakefield's Asia Pacific Data Centre Group, said:
"Various forecast models show that Asia Pacific will overtake the United States as the largest colocation market in either 2028 or 2029. Based on the population differential, this is expected—but still significant given the depth and maturity of the US market."
Based on the report's analysis, APAC colocation rental income is estimated to reach around USD $44 billion per year by 2030. Of this, 72% will be generated from the five largest markets based on capacity: Japan, Chinese mainland, Australia, India, and Malaysia. The report also indicates a significant market shift, with Malaysia anticipated to replace Singapore as the fifth largest market by or around 2029.
Japan is positioned as the leading contributor among these markets, accounting for 22% of regional colocation revenue, an estimated USD $9.6 billion in 2030. Each of the other four top markets is also projected to generate in excess of USD $4 billion annually in colocation revenue.
Changing development profiles
Cushman & Wakefield's analysis identifies notable differences in operational approaches between APAC and the United States. Swamy commented on the capacity distribution:
"Asia Pacific's higher proportion of operational colocation capacity, combined with higher average colo rents on a per kW basis, helped to drive the region's average rental rates above those in the US."
Currently, colocation stock comprises 58% of operational data centre capacity in the United States compared to 85% in Asia Pacific. Projections show this gap narrowing incrementally through the decade.
By 2030, colocation facilities are expected to account for 86% of total operational capacity in APAC, while the share in the US is forecast to rise to 61%. The report suggests that colocation capacity in the US will continue to grow in subsequent years, with hyperscale cloud and artificial intelligence providers turning increasingly to colocation services to keep pace with rising demand.
Market indicators
The Asia Pacific Data Centre Investment Landscape report is based on aggregated metrics across 14 regional markets. The analysis considers factors including population per megawatt of data centre capacity, regional demand, levels of direct US investment into APAC, capital expenditure requirements, rent revenue and cap rate estimates, and yield on cost.
Population growth, increasing digitalisation, and strong regional economic activity are highlighted as substantial drivers for escalating demand and investment in data centre infrastructure across Asia Pacific markets.
The anticipated increase in capacity and revenue is also predicted to result in evolving investment patterns and heightened focus from private and institutional investors in the APAC data centre sector.
