• Hong Kong ranked sixth overall in 2022 global rankings
• Shanghai retains fourth-placed ranking for total market size
Asia Pacific’s data center market continues to grow at a relentless pace and is set to become the world’s largest data center region over the next decade. According to Cushman & Wakefield’s latest 2022 Data Centre Global Market Comparison report, Singapore, Hong Kong and Sydney are ranked among the top 10 data center markets in the world.
Construction totals continue to grow globally, with 4.1 gigawatts (GW) currently underway in the markets covered, up from 2.9 GW in the previous study and 1.6 GW in the year before that. The largest clients continue to require larger builds, with 100 megawatt campuses becoming increasingly common.
The largest data center market in the world, Northern Virginia, again finished on top of the overall standings for a third consecutive year.
Singapore is ranked second globally and tops the Asia Pacific ranking, while Sydney is placed eighth globally and third in Asia Pacific. Ranked outside the overall top 10 markets last year, John Siu, Managing Director, Hong Kong at Cushman & Wakefield, said: “Hong Kong makes a big jump in 2022, coming in at sixth place globally and second in Asia-Pacific. Hong Kong offers a robust development pipeline, excellent networks and all major cloud services are available. The city also retains its crown as the globally lowest taxed data center jurisdiction. As a global financial and business capital, with a long history of pro-business policies it accordingly offers a robust data center sector.”
Shanghai retains its position as the world’s fourth largest data center market by total market size, with market capability of more than 0.6 gigawatts surpassed only by Northern Virginia, London, and Tokyo. Beijing was ranked 13th for the same indicator.
Secondary markets continue to develop rapidly, so much so that many will be skipping directly to primary market size in the next three to five years. This includes Jakarta, Osaka, Seoul, and several core markets across India, with new tertiary markets beginning to arrive on the scene. Hyperscalers are the driving force behind this, with both US- and China-based companies battling for market share regionally. As such, there is an overwhelming need for new hyperscale capacity across the board, with the largest occupants looking to grow throughout the entire region.
“The horizon for the data center industry across the Asia Pacific region is exceptionally bright, thanks to deep hyperscale demand and the billions of dollars in development in progress to support these key tenants,” said Kevin Imboden, Cushman & Wakefield’s Director of Research for the Data Centre Advisory Group. “The 1.3 gigawatts under construction in the APAC markets reviewed is a small fraction of what is in planning regionally, with much action and growth coming over the next decade.”
Click here to download the 2022 Data Center Global Market Comparison report.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms in the world, with approximately 50,000 employees in over 400 offices and 60 countries. In Greater China, a network of 22 offices serves local markets across the region, earning recognition and winning multiple awards for industry-leading performance. In 2021, the firm had revenue of $9.4 billion across core services including valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
