Thailand’s planned capacity surged by 193 per cent, while Malaysia’s soared by 70 per cent, both of which accounted for 64 per cent of the entire planned capacity through H1 2025 in the Asia Pacific region, according to a press release by Cushman & Wakefield which released its Asia Pacific Data Centre H1 2025 Update today. For the first half of 2025, the development pipeline in Asia Pacific increased by 2,282 MW to reach 16,620 MW, consisting of 3,281 MW under construction and 13,339 MW of planned capacity.
The Asia Pacific region now has approximately 1,400 MW of capacity under active development scheduled for delivery by end-2025, most of which can accommodate AI workloads. The current operational capacity is 12,634 MW which is expected to surpass 14 GW by end-2025.
The market remains strong with active capital raising, ongoing acquisitions by private equity, and continued acquisition of both greenfield land parcels and existing assets with redevelopment potential by operators, said the press release. This is despite headwinds such as US tariffs and trade barriers.
“The overall market sentiment remains optimistic with investors and operators strategically positioning themselves for long-term growth, underpinned by substantial land acquisitions and significant capital raised over the recent past,” the release said. “As a result, the remainder of the year is likely to see accelerated capital deployment, with a focus on initiating new developments and acquiring operational assets that offer strategic advantages.”
With the strong momentum, more new players are entering the market especially real estate developers eager to build infrastructure for both hyperscale and colocation operators. Emerging markets such as Kolkata, Visakhapatnam (Vaizag), Kyoto, Kyushu, Hokkaido, Chengdu, and Lingqui County are exhibiting early signs of scalability and may soon be considered for inclusion in C & W’s regional maturity index.
Largest markets by operational capacity
| Market | Operational Capacity |
| Chinese mainland | 4.6 GW |
| Japan | 1.5 GW |
| Australia | 1.3 GW |
| India | 1.3 GW |
| Singapore | 1.0 GW |
Another highlight is how Johor has climbed to the ranks of those in the Powerhouse Market from Emerging Market status in C&W’s Asia Pacific Maturity Index. The index tracks 30 data centre markets across Asia Pacific to compare their current maturity status as well as their potential evolution over the next decade. Existing cities in the Powerhouse market include Tokyo, Beijing, Sydney, Shanghai, and Mumbai, which are the largest in the Asia Pacific region, in terms of operational capacity, operator presence, and growth potential.
Emerging markets – Auckland, Taipei, Canberra, Manila, Busan, Bengaluru, Batam, Ho Chi Minh City, Perth, Hanoi, and Brisbane – have doubled their operational capacity from 3 per cent in H1 2024 to 6 per cent in H1 2025. Among those, Perth, Busan, Batam, Auckland, and Manila – are set to benefit from new subsea cable projects currently underway.
Market Briefs
Singapore
The data centre development activity in Singapore remains subdued owing to the ongoing restrictions on new development, therefore, the key indicators remained largely unchanged since the H2 2024 update. However, investors kept the market very active from a capital markets perspective.
Johor
Since H2 2024, Johor has added 160MW of new operational capacity – a 40% increase in just six months. Under-construction capacity has surged by 87% to 422MW, while planned capacity has grown by 61% to 1,324MW. At this pace, Johor is on track to become a 1GW market by end-2026. Despite several bad news in July such as higher electricity tariffs and chip export restrictions, the changes are not significant enough to disrupt Johor’s leading position as a cloud and AI hub.
Bangkok
Over the past six months, under- construction capacity surged by 267%, rising from 46MW to 169MW, while planned capacity increased by 177%, from 186MW to 515MW. Although operational capacity grew only marginally, demand remains robust, as evidenced by a drop in vacancy rates from 24% in H2 2024 to 16% by the end of H1 2025. With substantial capital inflows and anticipated deployments in the coming months, Bangkok is poised to be reclassified as a primary market.
Jakarta
The total development pipeline – comprising both under-construction and planned capacity – expanded by nearly 30%, reaching 709MW. Operational capacity, however, remained relatively stable, indicating a lag between new investments and commissioning timelines.
Ho Chi Minh City
Activity in Ho Chi Minh City remained relatively subdued over the past six months, with several announcement possibly igniting growth in the medium to long-term. Vietnam’s new Data Law, effective 1 July 2025, introduces a comprehensive national data governance framework with strict controls on cross-border data transfers, and mandating licensing and escrow requirements for data-related businesses. This would significantly influence both domestic and foreign investment strategies moving forward.
Manila
Operational data centre capacity in Manila has increased by 31% since H2 2024, reaching 68MW. However, demand has lagged behind supply, pushing the vacancy rate up to 44%. This is expected to ease in the coming months as newly added capacity begins to lease.
