INTELLIGENT BRANDS // Data Centers
Fast growth cities underpin data center development surge in Asia Pacific
Knight Frank , one of the largest independent global property advisors , has released the latest insights from its Q3 2022 Data Center Report .
The report focuses on nine rapidly emerging markets in Asia Pacific – Osaka , Melbourne , Jakarta , Manila , Hanoi , Taipei , Hyderabad , New Delhi and Chennai . growth , with circa 300MW to 400MW of IT capacity either live , committed or under construction in each location .
Fred Fitzalan Howard , Data Center Lead APAC , said : “ The insight from our latest report reinforces Asia Pacific ’ s position as the most exciting market in the global data center 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 center locations , opportunities will continue to arise across the M & A and development space .” p
Fueled by strong market fundamentals and an increasing trend towards greater localization of data center facilities , total supply in these locations grew from just under 700MW five years ago , to over 3,000MW – 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 stand out , with each now registering more than half a gigawatt of aggregate IT supply . Melbourne in recent years has developed into a key data center 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 center market to Tokyo , with a current live IT capacity exceeding 250MW and over 250MW in the pipeline .
In India , the data center industry has been on a high growth trajectory , partly driven by government policies , including easier access to credit and other incentives to boost data center investment . As a result , cities like Hyderabad , New Delhi and Chennai are registering significant data center market
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