The report also noted that 85% of current operational capacity in APAC is colocation-based—significantly higher than in the Americas (60%) and EMEA (75%).
In sum, what to know:
Asia Pacific will lead in colo – Cushman & Wakefield projects APAC will surpass the U.S. with 23.9 GW of data center capacity by 2030, driven by AI, cloud and rapid digitalization.
High demand, underserved markets – More than six countries in the region will still exceed a metric of 200,000 people served per MW in 2030, highlighting major growth potential across Southeast Asia’s developing infrastructure base.
$156B CapEx needed – The region’s 13 GW buildout pipeline through 2030 will require over $150B in investment, with rising rack densities driving both new construction and legacy upgrades.
The Asia Pacific region is on track to become the world’s largest colocation data center market by 2030, surpassing the United States in both total capacity and rental revenue, according to a new report by Cushman & Wakefield.
In its Asia Pacific Data Centre Investment Landscape report, the real estate firm projects that the region will reach 23,904 megawatts (MW) of operational data center capacity by the end of the decade, outpacing the 18,256 MW expected in the U.S. This expected surge in APAC will be chiefly driven by rapid growth in cloud computing, artificial intelligence (AI), digital services and increasing demand for digital infrastructure across Southeast Asia, India and China.
The report also noted that 85% of current operational capacity in Asia Pacific is colocation-based—significantly higher than in the Americas (60%) and EMEA (75%). This trend is expected to continue, with colocation accounting for 86% of the region’s development pipeline.
The report also highlighted that countries like Japan, India, South Korea and Australia—alongside China—are among the region’s major data center hubs and represent 90% of Asia Pacific’s GDP and 73% of its data center development pipeline.
Despite being home to 56% of the global population, the region remains relatively underserved in terms of data center capacity. In seven of the region’s 14 markets, there are more than 200,000 people per MW of colocation capacity—an indicator of high demand and low infrastructure penetration, according to the real estate firm.
The report also stressed that there is a continued growth potential in markets such as Thailand, Indonesia, Vietnam and the Philippines, where data center ecosystems are still in early stages of development. Although investor interest is emerging, full maturation of these markets may extend beyond 2030, it added.
Meanwhile, established regional hubs like Singapore and Hong Kong maintain high density and tight capacity margins. However, both serve broader regional needs and continue to attract major operators, despite regulatory and land constraints in Singapore.
To support the projected 13 GW of new capacity in development across the region, Cushman & Wakefield estimates a capital expenditure requirement of $156 billion until 2030. These investments include both greenfield projects and modernization of legacy data centers to support higher-density workloads driven by AI and cloud computing.
The report highlighted that private equity, real estate developers and operator-developer partnerships are playing an increasingly important role in funding this data center expansion.
U.S.-based investors remain active in the Asia Pacific market, with American colocation providers accounting for 23% of operational capacity and nearly 30% of capacity under development. Investment is concentrated in five countries—Japan, Australia, Malaysia, China and India—which together represent 86% of U.S.-linked data center capacity in the region, according to the report.
The Asia Pacific region’s economic fundamentals are also fueling growth in the data center space. The region’s GDP is forecast to surge from $39 trillion in 2024 to $54 trillion in 2030, at a compound annual growth rate (CAGR) of roughly 6%.
