Investors flock to Asia’s data centres amid AI demand
As AI drives demand for data processing, Asia’s data centre market is seeing record investment, with deals commanding valuations far above global averages.
Asia’s data centre market is attracting global investors despite sky-high valuations, thanks to surging demand driven by artificial intelligence services. Industry leaders expect the sector to remain lucrative, with data centres critical for housing the infrastructure needed to support AI and other digital technologies.
Recent deals highlight this growth, including Blackstone’s $15.5b acquisition of Australia’s AirTrunk, which set a benchmark with valuations exceeding 20 times core earnings. Similarly, Indonesia’s NeutraDC is drawing interest from major players like Singapore Telecommunications and BDx Data Centres, with a partial sale valuing it at over $1b.
Australia has also seen significant activity, with the DigiCo IPO increasing by $100 million to meet strong investor demand. This trend underscores Asia’s AI dominance in global data centre transactions, representing over half of 2024’s deal value. However, some experts warn of risks in markets lacking robust infrastructure to keep up with capacity expansion.
While execution risks remain, Asia’s data centre market is poised for continued growth, fueled by both technological advances and the expanding needs of hyperscale customers.
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