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Singapore is home to the largest number of data centres among four major markets in the Asia Pacific (APAC) region as of H1 2017, according to a CBRE report.
In fact, data centres here consumed 304MW of electricity, or 35 percent of the combined 865MW power consumption of the four markets, while Sydney, Tokyo and Hong Kong accounted for 17 percent, 22 percent and 26 percent respectively.
“The Singapore market is the most international of the four major APAC markets with several international carrier neutral co-location providers having established a presence there. One notable new completion in H1 2017 was Keppel DC Singapore 4 which features a gross floor area of more than 182,000 sq ft,” noted the property consultancy.
Its market is driven by strong foreign demand, which made up 65 percent to 75 percent of total demand based on the number of active end-users. The uptake of data centres here is also being propelled by the growing demand from e-commerce, cloud computing, online banking, smart phones and online security trading.
In addition, the city-state benefits from flexible international demand or demand that could be accommodated by several markets. Instead of splitting their data centre needs in various countries, some companies have focused on Singapore thanks to its robust network connectivity and accessibility to submarine fibre networks, as well as the ease of doing business here.
“This has led to unprecedented rates of growth in the co-location market over the last 24 months with capacity nearly doubling. We expect levels of interest in the Singapore market to continue and new supply to enter the market over the next 24 months albeit at a much reduced pace,” said CBRE.
Meanwhile, the property consultancy noted that strong take-up of data centres in Singapore and Sydney pushed APAC net absorption to 47.1 MW in H1 2017 and this has improved occupancy levels across the region.
CBRE also expects Asia Pacific to remain as the biggest market for data centres as there is a significant number of projects slated for completion over the next 12 to 24 months. In fact, there is about 351.1 MW of confirmed upcoming supply as of Q2 2017, up 40.6 percent over total existing stock.
“Going forward we expect demand in Singapore and Sydney to remain robust and Tokyo to remain relatively stable. Take-up in Hong Kong, which has been relatively slow in catching up to supply, will see a large increase in the next six to 12 months,” it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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