Emerging hubs developing across the ASEAN region and India
According to JLL’s Global Data Centre Outlook, the mass adoption of cloud computing and artificial intelligence (AI) is driving significant growth in the data centre sector. Hyperscalers, such as global cloud service providers, and edge data centres are leading the market’s fastest-growing segments, accounting for 79 per cent of overall demand.
The hyperscale market is projected to grow by 20 per cent from 2021 to 2026, as more tech companies aim to meet the increasing demand for data processing and storage. Currently, there are over 300 new hyperscale sites under development globally, and this number is expected to surpass 1,000 by the end of 2024.
Asia is expected to continue experiencing data centre uptake, driven by factors like sustained social media usage in China and India. Major regional hubs like Tokyo, Hong Kong, Singapore, and Sydney are considered strong, with a combined inventory of 3,000 MW and 765 MW under construction. However, other hubs and edge markets, including Jakarta and Mumbai, are gaining attention due to growing mobile phone usage.
The data centre industry faces challenges related to talent acquisition and retention. Globally, 53 per cent of data centre operators struggle to find qualified candidates, and 42 per cent face retention challenges. Sustainability is also a top priority, with a focus on energy use and emissions. Legislation and self-regulatory initiatives, like Singapore’s Data Centre Moratorium, are establishing standards to mitigate the industry’s climate impact.
Data centre developers, operators, and investors are increasingly prioritizing sustainability. Many businesses in the Asia Pacific region have embarked on purpose-driven sustainability programs, aiming to make an impact on climate action for sustainable real estate. Operators are adopting innovative solutions for energy efficiency to align with green ambitions.
Outsourcing data centre operations or partnering with third-party specialists can help mitigate labor challenges for data centre users. Those who respond quickly to talent and sustainability challenges stand to benefit from cost and operational efficiencies.