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AI boom drives Asia Pacific data center demand amid supply and power challenges
Research - MAY 29, 2025

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AI boom drives Asia Pacific data center demand amid supply and power challenges

by Andrea Zander

Despite an expected doubling of Asia Pacific data center supply in the next three years, there will still be a shortage of 15 to 25 gigawatts by 2028, due to insufficient power supply and a lack of AI-ready data centers, according to CBRE’s latest research report.

While the surge in artificial intelligence (AI) adoption and the increasing demand for cloud services are notably boosting data center requirements across Asia Pacific, not all existing and upcoming data centers in the region are equipped to handle AI workloads.

AI-focused data centers demand more than double the power density per server rack compared to traditional facilities. This necessitates advanced infrastructure for cooling systems, floor loading capacity, and sensitivity to network latency and bandwidth. With many current data center projects designed before the AI era, Asia Pacific is poised for a shor

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