Asia Pacific data centre market to reach $60b by 2027

In 2024 alone, data centre transactions have amounted to approximately $1.7b.

The Asia Pacific data centre (DC) market is set to become the largest globally, surpassing North America by 2025, with an estimated total value of $60by 2027, according to Linklaters.

This growth is fuelled by increased global demand for data and storage, driving rapid construction, development, and management of DCs in the region.

In 2024 alone, there are approximately $1.7b worth of DC transactions, marking an 81% rise from the last quarter of 2023. The APAC colocation data centre market is projected to grow at a five-year compound annual growth rate of 13.3%, reaching 19,069 MW by 2028, compared to 10,344 MW in 2023.

The demand for DCs in Asia continues to rise, driven by hyperscale activities, cloud storage, AI, 5G deployment, and government initiatives. China currently leads the region in DC numbers, followed by Australia, Japan, India, Hong Kong, and Singapore. 

Secondary APAC markets such as Mumbai, Johor, Batam, Kuala Lumpur, Bangkok, Ho Chi Minh, and Manila have also experienced significant growth due to technological and regulatory developments.

Additionally, Linklaters noted that Southeast Asia may outpace overall APAC growth, spurred by increased mobile application and social media use, accelerated cloud adoption, and data sovereignty concerns, prompting businesses to shift data to local DC providers.