HONG KONG SAR - Media OutReach Newswire - 12 April 2024 - Cushman & Wakefield has released its annual Global Data Center Market Comparison report, with Japanese markets outranking other Asia Pacific counterparts in both the Established and Emerging market categories.

In the Established markets category, Tokyo ranked third globally behind Virginia and Atlanta, with Mumbai placing seventh and Sydney ninth. Osaka ranked fourth in the Emerging markets category, with Hyderabad in eighth place and Bangkok in tenth.

Now in its fifth year, the 2024 report has an updated methodology to better reflect the rapid changes in both headwinds and tailwinds shaping the data center market. High weight factors include power availability, land availability and market size; mid weight factors include development pipeline, land price, power cost and cloud availability/operator presence.

Thirty APAC markets were included in the report, including new entrants Auckland, Batam, Brisbane, Perth, Pune and Taipei.

Asia Pacific highlights

While Singapore and Hong Kong remain in the Asia Pacific Top 10 Established markets, both have fallen out of the global ranking because of their constrained land supply, with neighbours in Malaysia (Johor) and Indonesia (Batam) consequently benefiting from their geographical proximity to Singapore.

Mumbai, Tokyo and Jakarta have jumped up the rankings as some of the most rapidly growing markets with each scoring well in absorption, development pipeline and vacancy. Within the emerging markets category, Osaka, Chennai and Hyderabad benefited from high competition for sites in neighbouring hotspots Tokyo and Mumbai.

The report shows all three regions—the Americas; Europe, the Middle East and Africa; and Asia Pacific—are expected to see existing capacity more than double. Asia Pacific currently has 10.6 GW operational capacity, with a development pipeline of an additional 13.3 GW expected to be realized in the coming five-to-seven years.

John Siu, Cushman & Wakefield's Hong Kong Managing Director and Hong Kong Lead - Asia Pacific Data Centre Advisory Team, said:

"Hong Kong, a major player in the Asia Pacific region, stands strong in the regional ranking alongside Tokyo, Sydney, Singapore, and Beijing. The demand for high-tier data centers in Hong Kong remains robust, driven by the need to support cloud computing services. This demand is underscored by two significant en-bloc leasing transactions totaling over 300,000 square feet in 2023. BDx secured the en-bloc industrial building at 38 Wing Kei Road in Kwai Chung, while AirTrunk committed to the entire San Miguel Industrial Building in Shatin for their wholesale data center conversion projects. With continuous technological advancements and a surge in hyperscale activity, Hong Kong's data center market is poised to become a dynamic hub for cutting-edge services, fostering long-term growth and global competitiveness."

Cushman & Wakefield's Managing Director and Head, Asia Pacific Data Centre Advisory Team Vivek Dahiya further added:

"Hyperscale activity has continued to add significant capacity to pipelines across markets like Mumbai, Tokyo, Sydney and Jakarta. As with other regions, we are also seeing growing interest in smaller markets. Emerging markets including Osaka, Hyderabad, Johor and Bangkok in particular are seeing growth. At a country level, Singapore is on track to join mainland China, Japan, Australia and India as markets with over 1GW in operational capacity in 2024."

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About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2023, the firm reported revenue of $9.5 billion across its core services of valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.hk or follow us on LinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china).