Data centre supply in these APAC cities surged by over 300% over five years

Supply grew from just 700MW to 3,000MW.

According to a report by Knight Frank in partnership with DC Byte, the total data centre supply in nine rapidly emerging markets in Asia Pacific - Osaka, Melbourne, Jakarta, Manila, Hanoi, Taipei, Hyderabad, New Delhi, and Chennai - grew from just under 700MW five years ago, to over 3,000MW today – a meteoric increase of over 300%. 

In the first three quarters of 2022 alone, over 600MW of new IT capacity has been added.

Across the nine locations studied, Melbourne, Jakarta, and Osaka standout, with each now registering more than half a gigawatt of aggregate IT supply. Melbourne in recent years has developed into a key data centre market, with renewed interest from local and regional operators poised to add close to 450MW to existing live supply. Jakarta has almost 400MW committed or under construction, with several major hyperscale cloud service providers advancing significant plans for self-builds in the city. Osaka continues to develop as an alternative data centre market to Tokyo, with a current live IT capacity exceeding 250MW, and over 250MW in the pipeline.

In India, the data centre industry has been on a high growth trajectory, partly driven by government policies, including easier access to credit and other incentives to boost data centre investment. As a result, cities like Hyderabad, New Delhi and Chennai are registering significant data centre market growth, with circa 300MW to 400MW of IT capacity either live, committed or under construction in each location.

Fred Fitzalan Howard, Data Centre Lead APAC said: “The insight from our latest report reinforces Asia Pacific’s position as the most exciting market in the global data centre industry. More businesses are speeding up their digital transformations, and the demand for cloud services and lower latency has proliferated, resulting in cloud providers sourcing colocation and self-build facilities in previously overlooked cities. As these secondary cities continue to establish themselves as data centre locations, opportunities will continue to arise across the M&A and development space.”

James Murphy, APAC Managing Director at DC Byte, added: “Previously the Asia Pacific region was dominated by a handful of 'Tier 1' markets. This is no longer the case as the trend for decentralisation has seen both hyperscalers and data centre operators move to new markets. The latest report highlights these new markets which we expect to continue to grow in parallel with some of the region’s more established hubs.”

To view the latest Data Centre Report please click here.