APAC data centre development pipeline hit a record 26.5 GW in the first half of 2026, according to the latest market update.

AI and cloud spending push capacity growth

The region added 7.1 GW over six months, one of the strongest half‑year gains on record. Hyperscalers, cloud providers and AI platforms are accelerating infrastructure spending, a trend noted by Andrew Green, head of the data centre group for Asia Pacific.

“AI and cloud investment across Asia Pacific has entered a phase of rapid, power‑constrained execution,” Green said. “The challenge increasingly lies in securing the power infrastructure needed to support the next generation of AI workloads.”

Historically, sites clustered around connectivity; now developers are looking toward markets that can deliver large‑scale electricity. That shift is opening new growth corridors beyond traditional hubs.

Numbers show a surge in construction and planning

4.8 GW is under construction, while 21.7 GW sits in the planning stage. Operational capacity rose by about 1.4 GW, showing the market can bring new supply online at scale.

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Vacancy in colocation facilities slipped from 10.9 % in late 2025 to 10.3 % in early 2026, indicating steady absorption despite the influx of new space.

Key markets reported the following changes:

• Johor: total 3,088 MW (+28%); under construction 602 MW (+91%); operational 1,110 MW (+24%).
• Sydney: total 2,134 MW (+65%); planned 2,018 MW (+83%); operational 917 MW (+17%).
• Bangkok: total 2,084 MW (+99%); under construction 859 MW (+148%); operational 134 MW (+19%).
• Mumbai: total 1,726 MW (+31%); operational 890 MW (+16%).
• Jakarta: total 1,699 MW (+56%); under construction 395 MW (+112%).

These figures illustrate a region moving quickly to meet demand while juggling power constraints.

When comparing this surge to previous cycles, the speed of deployment feels almost like a sprint rather than a jog. The emphasis on modular builds and advanced cooling mirrors moves seen in other high‑growth tech zones, though the power‑first focus is uniquely Asian.

Southeast Asia leads, but new corridors emerge

Southeast Asia holds roughly half of the under‑construction capacity. Malaysia tops the list with 1,039 MW, followed closely by Thailand at 859 MW. Both countries benefit from supportive policies and ongoing digital infrastructure projects.

Johor’s capacity nearly doubled to 602 MW, and Bangkok’s under‑construction stock jumped 148 % to 859 MW, marking some of the fastest expansion rates in the region.

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Pritesh Swamy, head of research for the data centre group, said developers are moving beyond traditional blueprints. Speed to market, modular construction and efficient cooling are now central to decision‑making, especially as computing environments grow denser.

Operators are also paying more attention to resource efficiency, managing power and water use as facilities scale.

Market maturity and future outlook

The APAC Data Centre Maturity Index tracks 30 markets, ranking them by operational capacity, pipeline size, vacancy, operator presence and growth prospects.

Green added that the next wave will favor markets that can balance scale, power availability and long‑term infrastructure readiness.

Overall, the data shows a region that is not only expanding capacity but also reshaping how and where that capacity is built, driven by the twin forces of AI demand and power considerations.