Asia Pacific’s data centre sector attracted a record US$11.6 billion in investment in 2025 as access to reliable power supply increasingly determines where new facilities can be developed, according to a latest report by CBRE.
In its 2026 Asia Pacific Data Centre Trends & Outlook Report, CBRE said accelerating artificial intelligence (AI) adoption is reshaping the region’s data centre landscape, with growth shifting beyond traditional hubs towards power-advantaged markets such as Malaysia, Australia and India.
The report noted that the region’s data centre footprint is being redrawn as operators prioritise locations capable of supporting high-density AI workloads and large-scale digital infrastructure.
CBRE said investment structures within the sector are also becoming more sophisticated as the market matures.
Entity-level transactions involving data centre platforms and operating companies reached US$8.3 billion in 2025, reflecting rising investor appetite for asset-specific exposure and improved liquidity.
At the same time, more operators are adopting capital recycling and fund management models to support expansion, strengthen balance sheets and gain access to diversified portfolios.
A key emerging trend identified in the report is the rise of “neoclouds” — a new generation of AI-focused cloud providers specialising in high-performance computing infrastructure.
These companies are rapidly expanding across Asia Pacific through both global and regional players, adding a new layer of demand alongside established hyperscalers.
However, CBRE noted that adoption remains selective, as some landlords remain cautious about tenant credit quality due to the relatively new business models of certain neocloud operators.
“AI is reshaping how infrastructure is selected and deployed across Asia Pacific,” said Matt Madden.
“For neocloud providers, access to power is increasingly outweighing traditional location advantages. This is directing demand toward markets that can support high-density campuses at scale, particularly across India, Malaysia, and parts of Southeast Asia,” he added.
The report highlighted Malaysia and India as emerging focal points among power-secure markets.
In 2025, Johor recorded the region’s fastest expansion in live data centre capacity, rising 53% year-on-year, followed by Melbourne with 37% growth.
The strong growth underscores increasing investor and operator interest in markets outside traditional regional hubs such as Singapore and Hong Kong, which recorded comparatively moderate growth of around six to eight per cent.
CBRE said mature markets are facing mounting constraints in meeting the next generation of power and cooling requirements needed for AI-driven infrastructure.
Singapore, for example, continues to manage power limitations through government allocation schemes, while South Korea has restricted new data centre developments within Greater Seoul to 10 megawatts.
The report also noted that higher construction costs and longer project delivery timelines are pushing operators to prioritise sites with faster development potential and reliable on-site power access.
As a result, investors are increasingly turning to built-to-suit projects, infrastructure partnerships and local development alliances to secure energy access and navigate regulatory complexities.
Ada Choi said Asia Pacific’s data centre market is undergoing a significant transformation driven by AI adoption and changing infrastructure requirements.
“Growth is shifting from traditional Tier I markets toward power-advantaged locations. As AI adoption accelerates, Asia Pacific is expected to remain one of the most important global growth regions, with attractive opportunities in power-secure, AI-ready markets,” she said.
