Asia Pacific’s new tier 1 data center stock declines in 2022
Research - APRIL 26, 2023

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Asia Pacific’s new tier 1 data center stock declines in 2022

by Jennifer Molloy

In 2022, supply-chain disruptions brought on by the pandemic caused a lull in new data center stock in Asia Pacific’s tier 1 markets (greater Tokyo, Sydney, Singapore and Hong Kong), dropping to 263 megawatts (MW) from a record-breaking 399MW in 2021, according to CBRE’s recent Asia Pacific Data Centre Trends H2 2022 report.

According to the report, regional data center vacancy moderated further to 12.4 percent based on solid demand, while leasing demand remained robust and continued to be driven by upgrading demand and ongoing expansion by hyperscalers. By 2025, CBRE expects 765MW of new data center stock — representing roughly one-third of total planned capacity — to be delivered. Key highlights from the report include:

Investment market

Investment demand weakened in 2022 given the rapid increase in financing costs and growing fears of a recession. Asia Pacific direct data center investment turnover fell to $1.4 billio
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