Asia Pacific Data Centre Capacity to Double by 2028 Amid Energy Concerns
The Asia Pacific region is witnessing a surge in data centre development, with projections indicating a doubling of capacity to around 30GW by 2027/2028. However, energy stability concerns, such as Singapore's moratorium on new data centre construction, pose challenges to this growth.
Financing for data centres in Asia has seen significant activity, with USD15.2bn across 21 transactions recorded by the end of July 2025. Leading the way in development are cities like Tokyo, Singapore, and Hong Kong. The edge data centre market is expected to grow at an impressive average annual rate of 25% beyond 2024.
In the early stages of growth are Vietnam and Thailand, while Malaysia and Indonesia, particularly Johor, have attracted substantial investment. Advanced data centres require specialized cooling systems and floor loading capacity to meet highly technical specifications.
Investors are drawn to data centres due to their strong investment case, offering long-term, steady cashflows from credit-worthy Big Tech companies. In 2024, data centre loan volumes in Asia increased by nearly 50% year-on-year to reach USD11bn over 20 deals.
Despite a projected supply shortage of around 15-25GW in Asia Pacific data centre capacity, the region remains an attractive investment destination. As energy stability concerns are addressed and early-stage markets like Vietnam and Thailand mature, the data centre landscape in Asia Pacific is set to evolve significantly.
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