Malaysia, Australia, and India emerge as focal points for APAC data centre investment

Total data centre investments in the region reached US$11.6 billion in 2025.

Asia Pacific data centre investment reached a record US$11.6 billion in 2025 as power availability became an increasingly critical factor in determining where new capacity can be developed, according to CBRE's 2026 Asia Pacific Data Centre Trends & Outlook Report.

CBRE said accelerating artificial intelligence adoption is driving demand beyond traditional data centre hubs and towards power-advantaged markets such as Malaysia, Australia and India, reshaping the region's data centre footprint.

The report found that investment structures are evolving as the market matures, with investors increasingly seeking asset-specific exposure and greater liquidity. Entity-level transactions involving platforms and operating companies totalled US$8.3 billion in 2025, while operators are increasingly adopting capital recycling and fund management strategies to support expansion and portfolio diversification.

CBRE also highlighted the emergence of "neoclouds" - AI-focused cloud providers specialising in high-performance computing infrastructure - as a growing source of demand. While adoption remains selective and some landlords remain cautious about tenant credit quality, the consultancy said neoclouds are becoming an important complementary demand segment alongside hyperscale operators.

According to CBRE, Malaysia and India are emerging as key beneficiaries of the industry's geographic shift. Johor recorded the strongest growth in live data centre capacity across Asia Pacific in 2025, expanding 53% year-on-year, followed by Melbourne at 37%. This compares with more mature markets such as Singapore and Hong Kong SAR, where growth remained in the 6-8% range.

The consultancy noted that rising construction costs, longer delivery timelines and power constraints in established markets are encouraging investors and operators to pursue built-to-suit developments, infrastructure partnerships and local development alliances. These strategies are increasingly viewed as essential for securing power access and navigating regulatory requirements.

"Asia Pacific's data centre market is undergoing a significant reordering," said Ada Choi, Head of Research, Asia Pacific at CBRE. The firm expects the region to remain one of the world's most important growth markets for data centres, with investment increasingly focused on power-secure and AI-ready locations.