APAC Data Centre Pipeline Grows 16% in H1 2025 Driven by AI Demand
Asia Pacific added nearly 2.3 gigawatts to its data centre pipeline in the first half of 2025 as operators increasingly plan facilities to support artificial intelligence workloads. Cushman & Wakefield reports that the region’s development pipeline expanded by 2,282 megawatts, a 16 percent increase from the end of 2024, reaching 16,620MW by June.
This new planned capacity is roughly equivalent to the combined current operational capacity of India (1.3GW) and Singapore (1GW). Southeast Asia is a major contributor, with Thailand’s pipeline jumping 193 percent and Malaysia’s rising 70 percent. Together, these two countries represent 64 percent of the new planned capacity in the period.
Current Capacity and Construction Status
APAC’s operational data centre capacity now stands at 12.7GW, with 3.2GW under construction and another 13.3GW in the planning stages. Projects underway aim to push operational capacity beyond 14GW by the end of 2025, with 1.4GW scheduled for delivery within the year.
Mainland China leads with 4.6GW operational capacity, followed by Japan (1.5GW) and Australia (1.3GW). Bangkok saw a 177 percent increase in planned capacity, growing from 186MW to 515MW. Under-construction capacity there surged 267 percent, from 46MW to 169MW. Operational capacity in Bangkok increased slightly to 109MW, while vacancy rates dropped from 24 percent to 16 percent, signaling solid demand.
Johor in Malaysia also expanded rapidly, adding 160MW of operational capacity—a 40 percent increase in six months. Under-construction capacity grew by 87 percent to 422MW, with planned capacity up 61 percent to 1,324MW. This growth preceded Malaysia’s new power tariffs introduced in July, which analysts expect to increase power costs by 10 to 14 percent for data centres. Despite this, Malaysia remains among the top three APAC markets with the lowest power tariffs, supporting Johor’s position as a leading cloud and AI hub.
Investor Activity and Key Transactions
Investor confidence remains strong, with capital markets active in the region’s digital infrastructure sector. Private equity acquisitions highlight the appeal of AI-ready and hyperscale data centres as long-term investments.
- SoftBank led notable deals with a $685.8 million purchase of the Sharp Sakai LCD factory in Osaka, converting it into an OpenAI data centre.
- CapitaLand Ascendas REIT acquired a Singapore facility from private trusts held by CapitaLand Group for $364 million.
- Bain Capital bought two Hong Kong projects from Grand Ming for $275 million.
Funding Demands for Co-Location Data Centres
Earlier in the year, Cushman & Wakefield reported that APAC’s co-location data centre pipeline requires more than $116 billion in funding over the next five to seven years. This pipeline excludes hyperscale projects and stood at 12,452MW in late-stage planning or under construction at the end of 2024.
More than 80 percent of this pipeline capacity is concentrated in Japan, India, Australia, mainland China, and Malaysia. The scale of investment reflects the growing demand for flexible, AI-capable infrastructure across the region.
For professionals in real estate and construction, these trends signal significant opportunities in data centre development, especially for projects supporting AI workloads. Understanding the shifts in capacity and investment flows will be crucial for positioning in this expanding market.
Learn more about AI and data infrastructure developments through specialized training at Complete AI Training.
Your membership also unlocks:
