The Asia-Pacific region is preparing for its most aggressive hyperscale expansion yet. Between 2025 and 2027, over 5 gigawatts (GW) of hyperscale data center capacity is expected to be deployed across APAC. This explosive growth isn’t just about meeting cloud demand—it’s a fundamental realignment of digital infrastructure to support generative AI, multicloud strategies, and sovereign data mandates.
In this article, we decode where the next wave of capacity is going, why certain markets are leading, and how power, policy, and proximity are shaping the hyperscale map of tomorrow.
1. The Power Math: Why 5 GW Matters
To put 5 GW into perspective:
It equals the combined output of 5 nuclear power plants.
Supports more than 25 million square feet of IT white space.
Can house over 1 million GPU racks powering AI and ML models.
With AI compute density rising and average rack power climbing to 40–60 kW, capacity is now a function of megawatts per megabyte. Hyperscalers are racing not only to build more, but to build smarter—with sustainable power, low-latency routing, and deep interconnection.
2. Top APAC Destinations for Hyperscale Growth
a) India (1.3 GW+)
Mumbai, Chennai, Hyderabad, Pune are the epicenters.
Driving factors: Digital India initiatives, 5G rollout, SaaS boom, hyperscaler partnerships (AWS, Azure, OCI).
Aggressive RE targets: 50% renewable energy by 2030.
Major Players: Yotta, AdaniConneX, NTT, CtrlS, STT GDC India.
Fast-track approvals via Gati Shakti and state-level SEZs.
b) Japan (800 MW)
Osaka and Tokyo continue to dominate but Fukuoka and Sendai are rising.
Japan’s AI and semiconductor programs accelerating need for HPC.
RE policy supports wind and geothermal integration.
Notable entrants: Digital Realty, Equinix, NTT, Colt DCS, Telehouse.
c) Indonesia (650 MW)
Jakarta, Cikarang, Batam receiving hyperscaler spillover from Singapore.
Government push for national cloud and local data residency.
PLN facilitating power corridor development.
Increasing submarine cable landings in Batam and Sulawesi.
Operators: DCI Indonesia, PDG, EdgeConneX, GDS.
d) Malaysia (550 MW)
Johor and Cyberjaya positioned as Singapore overflow.
Strong green energy policy and TNB’s data center support arm.
YTL and Keppel DC leading giga-campus projects.
e) South Korea (450 MW)
Seoul-Incheon corridor emerging as a hyperscale hotbed.
AI acceleration, gaming, and metaverse fueling capacity demand.
Cloud-neutral developments attracting global CSPs.
RE imports from Mongolia and domestic solar supporting ESG targets.
f) Australia (400 MW)
Sydney and Melbourne remain dominant.
RE credentials and stable governance are strong draws.
Infrastructure Australia fast-tracking data logistics corridors.
Players: NEXTDC, AirTrunk, CDC Data Centres.
g) Vietnam, Thailand, Philippines (450 MW combined)
Rising stars for latency-sensitive edge and sovereign cloud.
Vietnam: strong hydro potential and fiber route expansion.
Thailand: Bangkok-EEC corridor with BOI digital incentives.
Philippines: hyperscaler interest post-submarine cable boosts.
3. Powering the Build: Renewable Energy and Grid Strategy
Hyperscale growth is directly tied to grid readiness. Emerging strategies include:
Direct PPAs with RE developers.
Co-location with power plants in rural zones.
Grid-tied battery storage and microgrid pilots.
Liquid cooling and AI-driven thermal management to reduce PUE.
India, Japan, and Australia are also piloting Green Hydrogen for data centers. Meanwhile, Vietnam and Malaysia are issuing green bonds to attract climate-aligned DC funding.
4. Land, Labor, and Latency
Each market’s suitability is a mix of:
Land bank availability and zoning laws.
Workforce readiness and engineering skill pipelines.
Latency to major internet exchange points (IXPs) and AI/ML clusters.
Water availability for advanced cooling systems.
Governments are racing to issue smart permits and single-window clearance mechanisms, especially in India, Korea, and Malaysia.
5. Build Models: Giga Campuses, Modular, and Edge
Giga campuses (100+ MW) are becoming standard for cloud providers.
Pre-fab modular builds cut deployment time by 40%.
Edge facilities (1–10 MW) near Tier-2 cities support content delivery, fintech, and gaming.
Build-to-suit (BTS) continues to dominate hyperscaler-CSP partnerships.
6. Investment Trends
Over $60B in private equity, sovereign, and infrastructure funds committed in APAC DC sector by 2027.
Sovereign funds (ADIA, GIC, Mubadala) co-investing in hyperscale parks.
ESG compliance now core to capital inflows.
Stock exchanges in HK, SG, and India launching green REITs for DC investors.
7. Strategic Implications
For operators:
Land acquisition must begin 24–36 months ahead of build.
Power PPAs are deal breakers—build where RE is not just available, but scalable.
Interconnection strategy is now a C-suite topic.
For governments:
Data localization + AI regulation = demand surge.
Incentivize RE corridors and invest in talent pipelines.
Fast-track permits for critical digital infra.
Conclusion
The 2025–27 build cycle will define who leads in AI, cloud, and digital sovereignty across APAC. The next 5 GW of hyperscale capacity will reshape everything—from how data flows to where talent thrives. It’s a build-or-fall era.
Operators, policymakers, and investors that act decisively will control the future backbone of digital Asia.
Be where the capacity lands next.
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