Malaysia, Thailand, Japan set pace on Asia Pacific data centre construction per capita through end of decade

Malaysia’s strong data centre development pipeline will see its population per megawatt ratio consolidate faster than any other Asia Pacific market between now and the end of the decade, with Thailand and Japan seeing the second and third fastest rates of consolidation, according to a new report from global real estate services firm Cushman & Wakefield.

The Asia Pacific Data Centre Investment Landscape External Link report External Link shows Malaysia’s population per megawatt of operational colocation data centre capacity is on track to optimise from more than 60,000 people per megawatt currently, to approximately 14,000 people per megawatt by 2030, an approximately 80% improvement on real figures (Figure 1).

Once regarded as an overflow destination for neighbouring Singapore, Malaysia’s rapid pace of data centre development has seen Malaysia emerge as a destination in its own right, serving domestic demand primarily from Kuala Lumpur, and regional demand for AI and cloud services from Johor.

Thailand’s emerging data centre market is projected to see a consolidation of approximately 70%, dropping from almost 800,000 people per megawatt to approximately 220,000 people per megawatt. While this rate of change is off an existing capacity base of just 89 MW—among the lowest in the region—the country has begun to attract more attention following the 2024 announcement of hyperscaler investment. 

Japan’s rate of consolidation is third fastest; its population per megawatt will advance from 94,000 currently to 30,000 over the same time period—thanks to the country’s well-established reputation as a destination of choice for international capital, its stable political environment, its large, wealthy population and its GDP—the fourth-largest globally.

Report author and Head of Insights and Analysis for Cushman & Wakefield’s Asia Pacific Data Centre Group Pritesh Swamy said:

“Most Asia Pacific markets remain significantly underserved by data centre infrastructure, with an average of over 350,000 people per megawatt of data centre capacity. In contrast, the United States has a ratio of around 30,000 people per megawatt. This ratio underscores the ongoing efforts in many markets to scale up infrastructure to meet the demands of economic and demographic expansion.”
In addition to population drivers, the report looks at other key metrics driving investment activity in the region, including rent revenue forecasts, yield-on-cost, CapEx requirements, development demand, and GDP growth. 

“As well as population drivers, the development of the sector is also correlated to economic maturity. Economies with a GDP exceeding US$1 trillion are expected to remain the primary growth hubs over the next 3 to 5 years,” Swamy said. 

About the Asia Pacific Data Centre Investment Landscape report

The inaugural report looks at some of the key market indicators, aggregated across 14 APAC data centre markets, driving the capital market and investment trends across the rapidly growing sector including

• Population per megawatt
• GDP and regional demand
• US Direct Investment into Asia Pacific
• CapEx requirements
• Rent revenue and cap rate estimates
• Yield on cost

Download the Asia Pacific Data Centre Investment Landscape report here External Link