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Asia-Pacific Data Center Development Reaches Record 26.5GW

The latest report from Cushman & Wakefield, a global real estate services firm, reveals that the data center development pipeline in the Asia-Pacific (APAC) region has achieved a historic high of 26.5GW as of the first half of 2026. The impressive growth is attributed to significant investments by hyperscalers, cloud providers, and AI platforms, which collectively added 7.1GW of new development capacity in just six months, marking one of the largest semi-annual growth rates to date.

Currently, the development capacity comprises approximately 4.8GW under construction and 21.7GW planned. Additionally, around 1.4GW of operational capacity has been newly supplied across the APAC region, showcasing the ability to meet the rapidly expanding demand for digital infrastructure while introducing substantial new supply into the market.

Despite the increase in new supply, the co-location market's vacancy rate dropped from 10.9% in the second half of 2025 to 10.3% in the first half of 2026. This decline indicates sustained demand absorption in key markets and robust tenant demand, even amid capacity expansion phases.

Andrew Green, Head of the Asia-Pacific Data Center Group, emphasized, "Investments in AI and cloud in the Asia-Pacific region are entering a new phase of rapid expansion under power constraints. The biggest challenge now is securing the power infrastructure needed to support next-generation AI workloads. While data centers have historically prioritized connectivity, the focus is shifting towards markets that can ensure substantial power supply. This shift is creating new corridors of growth across the region and accelerating investments outside traditional data center hubs."

Southeast Asia (SEA) continues to lead the APAC region with the largest amount of construction capacity, accounting for about 50% of the total. Malaysia tops the list with 1,039MW in construction, followed by Thailand with 859MW. Strong demand, government support, and continued investment in digital infrastructure position Southeast Asia as a major growth engine for the APAC data center market.

Johor and Bangkok are at the center of this growth, with Johor's construction capacity nearly doubling to 602MW by the first half of 2026, while Bangkok saw a staggering 148% increase to reach 859MW, showcasing some of the highest growth rates in the APAC region.

Key Markets with High Growth in the First Half of 2026

In addition to the capacity expansion, the report highlights an evolution in development strategies across the APAC region. As infrastructure requirements become more sophisticated, developers are placing greater emphasis on speed to market, operational efficiency, sustainability, and long-term scalability.

Pritesh Swami, Head of Research and Consulting at the Asia-Pacific Data Center Group, remarked, "As infrastructure demands advance, developers are moving beyond traditional frameworks of data center development. In many markets, the speed to market is becoming a critical factor in decision-making. The adoption of modular construction methods and advanced cooling technologies allows operators to maximize limited infrastructure while minimizing deployment times. Moreover, as computing environments become denser, there is a growing interest in managing resources like power and water during facility expansions, ensuring efficiency, and sustainability in the long term."

APAC Data Center Market Maturity Index
Cushman & Wakefield's “Asia-Pacific Data Center Market Maturity Index” evaluates market maturity and growth potential across 30 markets in the region. The index categorizes markets into four categories: “Powerhouse,” “Established,” “Developing,” and “Emerging,” based on operational volume, development pipeline, vacancy rates, operator presence, and long-term growth outlook.

The latest index reflects the development of the APAC data center market in terms of both scale and sophistication. Johor maintained its status as the largest market in the region, surpassing 4GW in total operational and supply capacity.

As operational capacity and development plans rapidly expand region-wide, the maturity index's evaluation criteria were elevated in the first half of 2026. This led to several market reclassifications, reflecting the acceleration of market expansion.

Looking ahead, operational capacity in Australia, India, Japan, and Malaysia is projected to exceed 2GW by 2028.

Green concludes, "The next wave of growth will be driven by markets that can balance scale, power supply capacity, and long-term infrastructure development capabilities. While traditional major hubs will continue to play a vital role in supporting the digital economy, as the digital infrastructure in the APAC region matures, a wider array of markets are increasingly emerging as strong contenders for future data center investments."

For the full report (in English), click here. For Cushman & Wakefield’s real estate market report, please visit their website.

Cushman & Wakefield is a leading global company providing comprehensive commercial real estate services in tenant business and real estate investment in approximately 60 countries with over 350 locations and about 53,000 employees. In 2025, the company achieved a revenue of $10.3 billion across key business sectors, including facility management, sales brokerage, appraisal, tenant representation, leasing, project management, and more. Driven by the philosophy of "Better never settles," the company is committed to sustainable growth and enhancing corporate value, earning high recognition within and outside the industry. For more information, visit their website (www.cushmanwakefield.com).