Singapore ties with Silicon Valley for the second best data centre market globally, leading the way in APAC. Hong Kong rejoined the ranks as sixth globally and second in APAC.
In Cushman & Wakefield’s 2022 Global Data Center Market Comparison report, Singapore rose two places this year, drawing with Silicon Valley as the second best data centre market across the globe, North Virginia leading the chart. Hong Kong rejoined the top ten listing ranking sixth globally and second in the Asia Pacific region, after Singapore.
According to the Managing Director of Cushman & Wakefield in Hong Kong, the city’s comeback was achieved through strong development, superior networks, and accessibility of all major cloud services.
“The city also retains its crown as the globally lowest taxed data centre jurisdiction,” Siu added. “As a global financial and business capital, with a long history of pro-business policies it accordingly offers a robust data centre sector.”
Hong Kong’s supply total is expected to reach 5.5 million square feet (510,967 square metres) over the next five years, but will experience land and power supply storages in popular data centre hubs such as Tsuen Wan and Kwai Chung over time.
Singapore scored well due to its top performance in key criteria like market size, fibre connectivity, and cloud availability.
“With its ongoing moratorium on new facilities, the Lion City is one of the tightest data centre markets globally, with vacancy rates below 2 percent,” commented Brenda Ong, Executive Director for Logistics and Industrial at Cushman & Wakefield in Singapore. “While the moratorium is expected to be lifted soon, the tight supply situation could persist, with limited new supply coming into the market,” Ong said. “Singapore faces land as well as grid constraints and has limited renewable energy options. This would be a limiting factor on new data centre supply, given the global sustainability push.”
Following Singapore and Hong Kong, Sydney ranked eighth globally and third in APAC, followed by Tokyo and Seoul. APAC’s data centre market is growing at a “relentless pace,” and will develop into the world’s largest data centre region over the next decade, according to Cushman & Wakefield.
“The horizon for the data centre industry across the Asia Pacific region is exceptionally bright, thanks to deep hyperscale demand and the billions of dollars in development in progress to support these key tenants. The 1.3 gigawatts under construction in the APAC markets reviewed is a small fraction of what is in planning regionally, with much action and growth coming over the next decade.” said Kevin Imboden, Cushman & Wakefield’s Senior Research Manager for Data Centre Insights.
