The Asia Pacific data center market continued to grow rapidly during the second half of 2017, led by an increase in colocation supply across the four major markets of Hong Kong, Singapore, Sydney and Tokyo, which totaled 1.005 gigawatts during the period, according to CBRE.
Singapore remained the largest market with 315.8 megawatts in total supply, constituting just under one-third of total regional supply. New supply in Sydney means that this market is now level with Tokyo at 22 percent of total regional supply, narrowly behind Hong Kong, which accounts for 24 percent of total regional supply.
Market growth during the second half of 2017 kept pace with the previous review period, standing at 16.2 percent. This ensured occupancy remained relatively flat as the market continues to come to terms with recently completed new supply. Several major new developments were completed during the second half across all four markets, resulting in the addition of 140 megawatts of new supply. From a demand perspective, there was significant take up across all markets, led by Tokyo and Singapore. Net absorption in Asia Pacific totaled 78.7 megawatts during the second half of 2017, which helped occupancy edge upwards in line with historical levels.
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