Asia-Pacific (APAC) data centers are set for robust growth in the next 5-6 years, driven by rising demand from hyperscalers, migration to third-party data centers, and the rise of generative AI (Gen-AI), according to Bank of America (BofA) analysts. BofA projects a 14% compound annual growth rate (CAGR) in APAC data center colocation capacity, with nearly 2GW of new capacity added yearly, up from ~1GW annually between 2018 and 2023. While major markets like Tokyo and Singapore currently lead, constraints are pushing demand to secondary markets like Johor, Mumbai, and Jakarta. Additionally, data sovereignty laws and Gen-AI adoption are expected to drive significant increases in local data center demand.

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Source: Investing.com