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Sydney and Singapore Ranked Among Top 5 in Global Data Center Markets

Jayna Poh • 08/02/2021

Sydney and Singapore Ranked Among Top 5 in Global Data Center Markets

Sydney and Singapore have been ranked among the top ten data center markets globally, according to Cushman & Wakefield’s 2021 Global Data Center Market Comparison report. Sydney featured as the biggest mover in overall rankings, moving up to third, while Singapore moved up one position to fifth. 

Todd Olson, APAC Data Center Advisory Group Leader said, “Asia Pacific markets continue to perform well as data center destinations given its overall growth potential and the rapid development of technology platforms and networks across many of its markets. As e-commerce continues to flourish and cloud connectivity becomes a primary business driver, we expect the data center market growth to intensify in the region with secondary markets gaining prominence and new markets emerging in this space.”

Cushman & Wakefield’s study evaluated 1,189 data centers around the world, utilizing a unique weighted methodology to rank 48 global markets to arrive at the overall Top Ten markets. 

 

GLOBAL RANK

CITY

1

Northern Virginia

2

Chicago

3

Sydney

4

Silicon Valley

5

Singapore

6

Dallas

7

London

8

Seattle

9

New York / New Jersey

10

Amsterdam

 

“The 2020 pandemic accelerated the change in corporate IT strategy, as companies rapidly shifted to the cloud. Continuation and optimization of this shift will continue throughout the next several years, creating further emphasis on cloud services availability and connectivity across platforms,’ said Dave Fanning, Executive Managing Director, Data Center Advisory Group Leader at Cushman & Wakefield. “Construction of new product has skyrocketed, with the 1.6 GW under construction across markets studied last year swelling to 2.9 GW in this year’s edition. 

Secondary markets continue to grow in importance, with areas particularly in Europe and Asia gaining interest as some workload move to the edge. These secondary locales often provide greater margins for data center operators, with some growing to primary market status in the future. In Asia Pacific in particular, markets like Chennai and Kuala Lumpur are receiving interest from operators and hyperscalers alike.

Sydney, labeled as an emerging market and alternative in last year’s ranking, moved drastically up the overall rankings to third place, capping off a year of major new development announcements and an ongoing transformation of much of Australia’s government IT infrastructure. The business capital of Australia is a key location for initial in-country cloud deployments and enjoys robust regional connectivity.

Although Singapore and Amsterdam both have tempered data center development via local moratoriums, both still finished in the top ten, a testament to their strong existing markets, dense fiber, and array of available services. As other markets continue to grow, it will remain imperative for both markets to find solutions for future development, potentially through new forms of power generation or further multi-storey construction for the limited number of remaining development sites. 

Of the new markets introduced this year, Seoul received the highest overall score, marking an impressive debut for a long-overlooked data center market. Although considered a secondary market, Seoul has nearly 300 MW of capacity, a solid development pipeline, and all major cloud services available. Well-managed cities with smaller markets such as Zurich, Melbourne, and Madrid enjoyed continued gains, suggesting growing ecosystems in secondary locations, and long-time data center stalwarts London, Tokyo, Frankfurt, Silicon Valley, and Hong Kong all remain extremely relevant.

To read the full report, please click here

 
 

 

 

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