Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Singapore Tops 2022 Asia Pacific Data Centre Market Ranking, Places Second Globally

Jayna Poh • 25/01/2022

  Hong Kong and Sydney take second and third spots on the Asia Pacific ranking

Asia Pacific Set to Become World’s Largest Data Centre Region Over Next Decade 

Asia Pacific’s data centre market continues to grow at a relentless pace and is set to become the world’s largest data centre region over the next decade. According to Cushman & Wakefield’s latest 2022 Data Centre Global Market Comparison report, Singapore tops the Asia Pacific ranking (2nd globally), moving up two spots globally from 2021, while Hong Kong comes in 2nd in Asia Pacific (6th globally), rejoining the top 10 after missing out last year. Rounding out the Asia Pacific top three is Sydney (8th globally).

Singapore scored highly on key criteria such as market size, fiber connectivity and cloud availability, and coupled with its pro-business policies, this has propelled the market to top position for APAC and 2nd globally. Underpinned by a high concentration of global tech companies and strong connectivity, Singapore is the premier data centre hub in the region, serving both local and regional demand.

“Singapore is one of the tightest data centre markets globally with vacancy rates below 2%. Crippled supply due to the ongoing moratorium coupled with strong demand has driven up data centre prices since 2020. Current pricing is around S$200-S$400 kWh/month for the few small availabilities,” said Brenda Ong, Executive Director, Logistics & Industrial at Cushman & Wakefield. “While the moratorium is expected to be lifted soon, the tight supply situation could persist, with limited new supply coming into the market. Singapore faces land as well as grid constraints and has limited renewable energy options. This would be a limiting factor on new data centre supply, given the global sustainability push.”  

On the other hand, pent-up demand from hyperscalers and co-location operators continues to accumulate amidst a tech-fueled economy. Data centre prices are expected to continue heading north (up to 10% per year) and data centre caprates are expected to compress further due to strong investor demand and limited market supply. 

Despite the current moratorium on new builds, Singapore remains a strong location for data centre deployment, propelling the market to the top of the regional rankings, while tying for second with Silicon Valley on the overall global rankings. The result is also a testament to its strong ecosystems, excellent connectivity, consistent demand, and all major cloud services available and expanding where possible. 

ASIA PACIFIC SET TO BECOME WORLD’S LARGEST DATA CENTRE REGION OVER NEXT DECADE

“Asia Pacific’s outlook is exceptionally positive, with many multinational enterprises requiring further refinement in the cloud (or across multiple cloud services) and many regional governments pursuing online service access. Both established and emerging markets will see continued large-scale requirements for capacity by all participants,” said Todd Olson, Managing Director, Japan & Korea, and Head of Asia Pacific Data Centre Practice Group at Cushman & Wakefield. “It is a great time to be investing in this sector and we look to continue leveraging our experience, expertise and access to relationships and supply to drive opportunities within both the asset and platform space.”  

Ranked outside the overall top 10 markets last year, Hong Kong makes a big jump in 2022 to second in the region and comes in just behind the global top five markets. The market offers a robust development pipeline, excellent networks and all major cloud services are available. Considerable further growth is expected in Sydney (regional 3rd), Seoul (regional 4th) and Tokyo (regional 5th), as there is still some land and power available in key nodes despite their costs.

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 centre 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 Senior Research Manager, Data Centre Insights, Global Research. “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.”

Globally, construction totals continue to grow, 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. 

Further growth is expected throughout at least the next five to 10 years, as the region requires entirely new builds due to a lack of existing infrastructure for retrofit. Globally, regions across Latin America and Africa are also expected to enjoy considerable growth in coming years, as new undersea cables are bringing faster access to many markets for the first time. Secondary markets across the world continue to grow, with many soon to reach current primary market size. 

Related Insights

Singapore
Insights • Insights

Commentary On Q2 2022 URA Real Estate Statistics

New sales volumes picked up in Q2 2022 with 2,397 units transacted, 31.3% q-o-q higher than that in the preceding quarter given robust sales performances at major new launches.
Xian Yang Wong • 29/07/2022
Singapore Market Outlook H2 2022
Research • Forecast - Outlook

Singapore Market Outlook H2 2022

Cushman & Wakefield’s latest Singapore Market Outlook H2 2022 report expects the overall Singapore property market to see relatively strong but slower growth as investors seek out safe havens for wealth preservation and diversification amidst global uncertainties.
Xian Yang Wong • 28/07/2022
Data-Center-Update_APAC_web-card-1221
Research • Data Center

APAC Data Centre Update

H1 2022

Major APAC Markets Continue to have tight vacancy rates even as data centre deliveries and development pipelines reach new milestones. Collectively, the markets of Hong Kong, Singapore, Sydney, Tokyo, and Jakarta have nearly 750 MW in total under active construction.
20/07/2022
istockphoto-2022-cardimage-Policy--Watch-SG
Insights • Investment

Cushman & Wakefield's Comments On Ura May 2022 Developer Sales

On the back of more launches in May, developers sold 1,356 new private homes (excluding ECs) last month – the highest monthly volumes since November 2021 when 1,547 new units were sold.
Xian Yang Wong • 15/06/2022
Navigating a High Inflation Environment
Research • Inflation

Navigating a High Inflation Environment

This report explores the implications of high inflation for real estate, and presents key strategies for owners, investors and occupiers to forge ahead in the inflationary environment. 
26/04/2022
Singapore Carbon Tax 2022 card
Research • Sustainability

Singapore Carbon Tax 2022

What Will The Singapore Carbon Tax Cost You?
Rebecca Jinks • 29/03/2022
istockphoto-2022-cardimage-Policy--Watch-SG
Insights • Investment

Policy Watch Singapore: Budget 2022

Over the last two years, the Singapore Government dedicated a total of close to S$100 billion to combat the impact of Covid-19. 
Xian Yang Wong • 21/02/2022
Singapore Office Market Outlook 2022
Insights • Office

Singapore Office Market Outlook 2022

Following a strong recovery in office demand, reduced vacancies and rental growth last year, the Singapore office market is expected to further pick up pace in 2022.
Xian Yang Wong • 08/02/2022
istockphoto-connect-cardimage
Insights • Data Center

WEBINAR | Data Centre Sustainability in Greater China

As China aims to hit peak emissions before 2030 and for carbon neutrality by 2060, a challenging transition in the power-consuming data centre industry is expected – to sustain the industry’s development and fulfil new standards.
Summer Chen • 03/12/2021
Data center
Research • Sustainability

WEBINAR SERIES | THE SUSTAINABILITY IMPERATIVE FOR DATA CENTRES

With the extremely high consumption of power by data centres and the significant carbon footprint the sector generates, there is a need to strengthen sector-wide standards and commitments for the sustainable data centre operations.
Todd Olson • 29/09/2021
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS