Asia Pacific data centre growth fuelled by Thailand & Malaysia
Cushman & Wakefield has released its Asia Pacific Data Centre H1 2025 Update, detailing the latest trends and figures within the region's data centre sector.
The report highlights that operational capacity across Asia Pacific's data centres now stands at 12,634 MW. The sector's development pipeline has expanded by 2,282 MW in the first half of 2025, bringing the total to 16,620 MW. This pipeline includes 3,281 MW currently under construction in addition to 13,339 MW of planned capacity.
According to the report, Thailand and Malaysia were significant contributors to the new planned capacity, jointly accounting for 64% of this growth. Thailand recorded a 193% increase in planned capacity, while Malaysia saw a 70% increase. The report notes that the surge in Thailand's figures starts from a comparatively low base, while Malaysia's continued expansion reflects wider regional growth trends.
Approximately 1,400 MW of capacity is now under active development, scheduled for delivery by the end of 2025. As a result, total operational capacity across the region is projected to exceed 14 GW by the end of that period.
Capacity by market
The largest markets by operational capacity remain the Chinese mainland at 4.6 GW, followed by Japan (1.5 GW), Australia (1.3 GW), India (1.3 GW), and Singapore (1.0 GW). These figures point to continued dominance by mature markets but also highlight the rapid emergence of Southeast Asian countries as significant players in regional digital infrastructure.
New data centre developments are increasingly being designed for adaptability to accommodate AI-driven workloads. This is particularly relevant as demand for computing power and connectivity infrastructure grows due to advancements in artificial intelligence and cloud services.
Transaction activity
Capital markets activity remains robust within the Asia Pacific data centre sector, with the report stating, "Transaction activity remained strong, evidenced by Active capital raising, Continued acquisition of both greenfield land parcels and existing assets with redevelopment potential by operators, and Ongoing acquisitions by private equity." This trend illustrates sustained investor confidence and ongoing interest in both development opportunities and established assets.
Key trends
In addition to capacity increases, the report reveals that data centre projects are increasingly being constructed with AI workloads in mind, reflecting the region's adaptation to changing technology requirements. The ability to provide the high-density power and cooling required for AI applications is influencing design and development choices across the sector.
The report also underscores the importance of Southeast Asia as a growth engine for the sector, particularly noting the pace of capacity expansion in Thailand and Malaysia, which is outstripping traditional centres of activity in the near term.
"Current operational capacity is 12,634 MW. The development pipeline increased by 2,282 MW through H1 to reach 16,620 MW. This development pipeline is comprised of 3,281 MW under construction and 13,339 MW of planned capacity. Thailand and Malaysia combined accounted for 64% of this new planned capacity. This represented a 193% increase in Thailand's planned capacity, albeit off a very low base, and a 70% increase in Malaysia's planned capacity. The region now has approximately 1,400 MW of capacity under active development scheduled for delivery by end-2025. Total operational capacity is expected to surpass 14 GW by end-2025. New developments are increasingly being built with the flexibility to accommodate AI workloads. Transaction activity remained strong, evidenced by Active capital raising, Continued acquisition of both greenfield land parcels and existing assets with redevelopment potential by operators, and Ongoing acquisitions by private equity."
The Asia Pacific Data Centre H1 2025 Update from Cushman & Wakefield provides a comprehensive overview of key market indicators, reflecting accelerated demand and shifting regional dynamics within the sector.
