Global data centre market to hit US$4 tril by 2030; Apac sees bulk of 2024 investments: Knight Frank
Worldwide purchase prices averaged US$ 75.4 million in 2024, up 15% y-o-y and 44% greater than pre-Covid levels in 2019. Knight Frank’s research also spotted that Asia Pacific (Apac) controlled information centre ventures, with some US$ 15.5 billion, or 70%, of cross-border information centre deals occurring in the area.
The rise in international information hub market activity is expected to carry on in the coming years. Knight Frank approximates that the marketplace is going to notch an annual CAGR of 18% over the following 5 years, propelling it to strike US$ 4 trillion by 2030.
Across the embankment, Singapore remains a key data centre market despite regulative and land constraints. Nevertheless, the report accentuate that with vacant rates below 1%, transactions in the city-state have shifted towards smaller sized deals, in tandem with an upsurge in pricing.
Fitzalan-Howard sees the preliminary financial investments as setting the structure for even more AI facilities rollouts in the area. “However, dealing with different regulative structures and adjusting to United States export controls on AI chips stay necessary consider maximising Apac’s opportunities in this swiftly evolving sector,” he proceeds.
Apac is expected to add 4,174 MW of capacity by 2027, sustained by US$ 58.7 billion in planned financial investments over the very same time frame. Key contributors consist of Tokyo, which is forecasted to see US$ 4.1 billion in financial investments over the next 2 years that will underpin 25% (295 MW) of capacity growth.
The worldwide data centre market is set to see quick progress in the coming five years, following a strong rebound in 2024. According to Knight Frank’s newest Global Data Centres Report, worldwide data centre real estate transactions quantity recuperated from an interest rate-hike driven downturn in 2023 to hit US$ 31.8 billion ($42.9 billion) last year, up 118% y-o-y.
Fred Fitzalan-Howard, Knight Frank’s Apac head of data centres, says that the Apac data centre market will add concerning 8 gigawatts of brand-new storage capacity over the following three years, with a quarter of this alloted to AI workloads. While less than the global average because of the region’s Rate 2 or Rate 3 status under United States AI diffusion rules, the pipeline stands for US$ 24 billion in capital investment and 20 to 30 million sq ft of realty, he includes.
The resilient outlook reflects mounting demand for AI-optimised infrastructure, cloud solutions and venture digital efforts. Knight Frank projects that worldwide data centre capacity will certainly spike 46%, or 20,828 megawatts (MW), over the next two years. By 2030, it predicts capacity can increase by 177%.
Johor is additionally on the right track for further rapid growth. Knight Frank approximates the southern Malaysian state will see 85% (335 MW) ability growth by 2027, backed by US$ 4.7 billion in financial investment.
