Approximately $116 billion will be needed to build out the existing colocation data center pipeline across Asia Pacific in the coming five to seven years as demand for the sector grows, according to calculations by Cushman & Wakefield.
The firm’s recently released H2 2024 Asia Pacific Data Centre Market Update report shows the pipeline of colocation projects in the region either currently under construction or in late-stage planning stands at 12,452 megawatts (MW).
Using the construction cost of a mid-specification data center for each market as a benchmark, the total capital required to build out the pipeline currently sits at $116.2 billion.
By Cushman & Wakefield estimates, this development pipeline provides an opportunity to generate over $14.9 billion in annual colocation rent and can potentially achieve almost 13 percent yield-on-c
