Booming GenAI demand to propel doubling of Asia-Pacific data centre capacity by 2028
- Region’s data centre capacity is expected to reach 24,800MW by 2028, more than double the current 10,500MW, according to Moody’s
Data centre capacity in Asia-Pacific (APAC), the fastest-growing market globally, is set to double in the next five years, driven by increasing adoption of artificial intelligence (AI) and cloud computing, according to analysts.
The rapid growth of data centres alongside rising demand for electricity and water could expose the region to carbon transition risks, they added.
Data centre capacity in APAC is expected to grow at a compound annual average rate of almost 20 per cent through 2028 to about 24,800 megawatts (MW) – more than double the current capacity of 10,500MW, Moody’s Ratings said in a report last week.
The region is expected to constitute about 30 per cent of global capacity expansion over the next five years, with more than US$564 billion of investment, the rating agency said.
The booming investments into developing generative AI software in APAC will drive the growth of the region’s data centre market, according to S&P Global.
“North America is the largest market when it comes to generative AI, driving about 63 per cent of global revenues,” Melissa Incera, research analyst for data, AI, and analytics at S&P Global Market Intelligence, said during a webinar last week.
