The rapid adoption of artificial intelligence (AI) and the growing demand for cloud services are driving a significant increase in data centre requirements across Asia Pacific, according to a new report by CBRE. Despite an anticipated doubling of data centre supply in the region over the next three years, a shortage of 15–25 gigawatts is expected by 2028 due to insufficient power supply and a lack of AI-ready facilities.
AI-focused data centres require more than double the power density per server rack compared to traditional centres, necessitating advanced infrastructure for cooling, floor loading, and network sensitivity. Many existing projects were designed before the AI era, leading to a projected shortage of suitable space.
Investment in data centres remains robust, with direct investment volumes reaching $4.7 billion in 2024, as reported by MSCI and CBRE Research. This trend is expected to continue into 2025, with operators and developers repurposing stabilised assets despite challenges such as inadequate power supply and construction delays.
Tom Fillmore, Executive Director of Data Centres, Capital Markets, Asia Pacific for CBRE, emphasised the importance of focusing on advanced data centre assets to capitalise on AI growth. He stated, “Prioritising mergers and acquisitions, as well as equity investments in operators with a strong development pipeline will be key to achieving scalability, especially for projects that are power-ready.”
Ada Choi, Head of Research, Asia Pacific for CBRE, added that developed markets like Japan, Australia, and Korea will see increased demand, with Singapore also drawing attention despite its supply constraints. The AI boom is expected to sustain strong demand for co-location and hyperscale data centres, attracting significant investor interest.
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