The past month has seen sustained investment trends in the data centre sector and research by Headwind Consultants reveals that APAC attracted almost 40pct of the estimated USD16b total secured for explosive market growth taking place across the region.
Investment in India ranked a close second with 35pct, followed by Europe and the UK with approximately 21pct.
Acquisitions of existing facilities were brisk during the past month, equating to USD2.9b, while data centre new build yielded a total commitment of USD13 billion.
Japan attracted interest with Mitsui announcing USD2.7b for the construction of three large facilities in Kyoto, Chiba and one other city. A further USD1.1b has been committed by Princeton Digital Group of Singapore in a new build at Saitama, north of Tokyo on a 33,047 sqm site. These investments follow on from Hong Kong logistics firm ESR’s acquisition of a facility in Osaka last April and USD2.15b expansion plan for three facilities, providing a combined 78MW.
Activity in India included Airtel (through its subsidiary Nxtra Data Ltd) and an announced build of 7 data centres with an investment of USD470m. Singapore based player Ascendas Property Fund Trustee Pte. Ltd has acquired the rights to a 6.6-acre greenfield site at Airoli outside Mumbai. Webwerks will build a new facility at Whitefield, Bangalore. Digital Realty partnering with Brookfield is making a significant USD2b market entry, as is Yondr Group with Everstone at USD1b, and Microsoft is reported to be committing USD2b for a site in Telangana.
“India is experiencing tremendous investor interest based on substantial growth prospects for data centre demand,” commented Philip Low, managing director of Headwind Consultants. “Data residency legislation is expected to be passed by the end of this year will provide added impetus to market activity from 2022 onwards.”