Asia Pacific data centre investment reached a record US$11.6 billion in 2025, with power availability emerging as a critical factor in determining where new capacity can be developed, according to CBRE’s 2026 Asia Pacific Data Centre Trends & Outlook report.
Accelerating artificial intelligence adoption is driving demand beyond traditional hubs toward power-advantaged markets such as Malaysia, Australia and India, reshaping the region’s data centre footprint.
Investment structures are also evolving, with investors increasingly seeking asset-specific exposure and greater liquidity. Entity-level transactions involving platforms and operating companies totalled US$8.3 billion in 2025, while operators are adopting capital recycling and fund management strategies to support expansion.
CBRE highlighted the rise of “neoclouds”, AI-focused cloud providers specialising in high-performance computing, as a growing demand segment alongside hyperscale operators. Malaysia and India are emerging as key beneficiaries of this geographic shift. Johor recorded the strongest growth in live data centre capacity across Asia Pacific, expanding 53 per cent year-on-year, followed by Melbourne at 37 per cent, compared to 6-8 per cent growth in more mature markets such as Singapore and Hong Kong.
Rising construction costs, longer delivery timelines and power constraints in established markets are encouraging investors to pursue built-to-suit developments, infrastructure partnerships and local alliances to secure power access and navigate regulatory requirements.
CBRE expects Asia Pacific to remain one of the world’s most important data centre growth markets, with investment increasingly focused on power-secure and AI-ready locations.
