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Demand for Data Centers in Asia Pacific Rising

08/03/2019

By Dave Fanning, Director, Data Center Advisory Group and Kevin Imboden, Director of Research, Data Center Advisory Group

In Cushman & Wakefield’s February 2019 Asia and Australia Data Centre Reports, one common theme emerges: whether it’s Singapore, Hong Kong, Tokyo, or Sydney, major construction is underway in each area as demand continues unabated. This demand combined with continued investor interest and an always-limited supply of land in each of these cities contributes to markets that will remain hot for the foreseeable future.

With its fantastic connectivity and array of high-end internationally focused companies, Singapore is expecting to nearly double its current data center capacity over the next three years. Half of this new capacity is outside the colocation sphere, with Facebook underway on a 150 MW, eleven-floor hyperscale build that will be the largest facility in the country. Other heavy hitters such as Global Switch, Iron Mountain, Equinix, Google, Digital Realty, STT, and China Mobile are all in construction or have recently completed expansions.

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Hong Kong has witnessed record land pricing of late, with three site sales in 2018 culminating in the HK$5.5 billion outlay for a site in the Tseung Kwan O industrial estate by local powerhouse operator SUNeVision. This sale had been anticipated for years as the last location zoned for data centers in the well-tenanted park. SUNeVision is in planning on development at this and another site, with Equinix and Global Switch both under construction on sites through the middle of this year.

The varied market that is Tokyo continues its annual slow growth, with four new projects coming online through mid-2020. Equinix is scheduled to be first to completion, followed by smaller projects by NEC and KDDI and a larger project from SoftBank. Operators from several industry verticals operate data centers in Tokyo, including current and past telecoms companies, the electronics industry, and more standard colocation players.

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Capacity in Sydney is also expected to double in the next couple of years, with Keppel Data Centre REIT, NextDC, Equinix, and Digital Realty all under construction or planning to begin soon. Of note is the proposed NextDC S3 campus, which will boast 80 megawatts of available power at full buildout. Sydney remains the best-connected market in Australia, albeit with dozens of operators both local and international fighting for business.

To get the full data on these four markets, download the reports here:

Singapore

Sydney

Tokyo

Hong Kong

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