Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Global transaction prices equated US$ 75.4 million in 2024, up 15% y-o-y and 44% greater than pre-Covid levels in 2019. Knight Frank’s research also identified that Asia Pacific (Apac) controlled information centre investments, with some US$ 15.5 billion, or 70%, of cross-border data centre deals happening in the area.
Throughout the causeway, Singapore stays a key data centre market in spite of regulative and land restrictions. However, the record highlights that with uninhabited rates below 1%, transactions in the city-state have actually changed towards smaller agreements, in tandem with an upsurge in prices.
The international information facility market is set to see fast development in the next 5 years, following a strong recoil in 2024. According to Knight Frank’s newest Global Information Centres Report, worldwide data centre realty transaction volume bounced back from an interest rate-hike driven downturn in 2023 to reach US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
Fitzalan-Howard sees the initial investments as laying the foundation for even more AI facilities rollouts in the area. “Nonetheless, attending to varied regulatory frameworks and adjusting to US export regulates on AI chips stay necessary consider maximising Apac’s chances in this quickly progressing industry,” he proceeds.
The surge in international data facility market activity is expected to continue in the coming years. Knight Frank estimates that the marketplace will notch an annual CAGR of 18% over the following 5 years, pushing it to hit US$ 4 trillion by 2030.
The buoyant outlook reflects mounting demand for AI-optimised infrastructure, cloud solutions and enterprise digital initiatives. Knight Frank projects that international data hub capacity will spike 46%, or 20,828 megawatts (MW), over the next 2 years. By 2030, it predicts capability might increase by 177%.
Apac is expected to add 4,174 MW of capacity by 2027, supported by US$ 58.7 billion in planned financial investments over the same period. Key factors consist of Tokyo, which is forecasted to see US$ 4.1 billion in financial investments over the following two years that will underpin 25% (295 MW) of capability growth.
Grand Dunman Singhaiyi Group Ltd
Johor is also on course for additional rapid development. Knight Frank estimates the southern Malaysian state will certainly see 85% (335 MW) capability development by 2027, backed by US$ 4.7 billion in investment.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, states that the Apac data centre industry will certainly include concerning 8 gigawatts of new capacity over the following three years, with a quarter of this alloted to AI workloads. While lower than the global average because of the area’s Rate 2 or Rate 3 status under US AI diffusion rules, the pipeline represents US$ 24 billion in capital expenditure and 20 to 30 million sq ft of property, he includes.
