A pandemic-led spike in requirements for data storage propelled total data centre net absorption in Asia Pacific Tier I markets (Tokyo, Sydney, Singapore and Hong Kong SAR) to 322 MW in 2020, double the volume of 2019 and marking an all-time high.
Most demand in 2020 originated from hyperscale cloud providers, which contributed around two-thirds of annual absorption. Among end-users, demand was led by gaming, over-the-top media services, online content and streaming providers.
Despite some projects experiencing pandemic-induced construction delays, Asia Pacific Tier I data centre markets recorded unprecedented growth in total colocation capacity in 2020. Total colocation capacity increased by 17% y-o-y to 1,781 MW by year’s end, with the bulk of completions located in Sydney and Singapore.
Full-year transaction volume for data centre assets reached US$2.2 billion in 2020, the highest in five years. The year also saw a continuation of platform formation and M&A deals for data centres, with upwards of US$5.0 billion deployed by funding platforms and joint ventures across the region.