- 7.1GW added to the development pipeline and 1.4GW of operational capacity delivered
- Southeast Asia accounts for about 50% of the region’s under-construction capacity
- Power constraints pushes hyperscale expansion beyond traditional hubs
- Seoul vacancy tightens to 1.1% as AI and cloud demand drives data centre expansion
Asia Pacific's (APAC) data centre development pipeline reached a record 26.5 gigawatts (GW) in H1 2026. The region added 7.1GW in just six months, marking one of the strongest half-year gains on record as hyperscalers, cloud providers and AI platforms accelerated infrastructure investment across the region.
According to Cushman & Wakefield's APAC Data Centre H1 2026 Update, the region's development pipeline now comprises 4.8GW under-construction and 21.7GW in planned capacity. Approximately 1.4GW of operational capacity was also delivered across APAC, highlighting the market's ability to bring new supply online at scale while keeping pace with rapidly growing digital infrastructure requirements.
Despite significant new deliveries, colocation vacancy declined from 10.9% in H2 2025 to 10.3% in H1 2026, underscoring continued absorption across key markets and the resilience of occupier demand amid ongoing capacity expansion.
“AI and cloud investment across Asia Pacific has entered a phase of rapid, power-constrained execution,” said Andrew Green, Head of Data Centre Group, Asia Pacific. “The challenge increasingly lies in securing the power infrastructure needed to support the next generation of AI workloads. Historically, data centres were clustered around connectivity, but now, we're seeing expansion gravitate towards markets that can provide power at scale. This is creating new growth corridors across the region and accelerating investment beyond traditional data centre hubs.”
Southeast Asia (SEA) continues to hold the largest share of under-construction capacity in APAC, accounting for approximately 50% of the regional total. Malaysia leads with 1,039 megawatts (MW) under construction, followed by Thailand at 859MW. Strong occupier demand, supportive government policies and continued investment in digital infrastructure have reinforced SEA's role as a major growth engine for APAC's data centre sector.
Across APAC, several markets recorded notable gains in development activity during the first half of 2026:
| Market | Development Pipeline | Other Key Metrics |
| Johor | 3,088MW (+28%) | • U/C: 602MW (+91%), • Operational: 1,110MW (+24%) |
| Sydney | 2,134MW (+65%) | • Planned: 2,018MW (+83%) • Operational: 917MW (+17%) |
| Bangkok | 2,084MW (+99%) | • U/C: 859MW (+148%) • Operational: 134MW (+19%) |
| Mumbai | 1,726MW (+31%) | • Operational: 890MW (+16%) |
| Jakarta | 1,699MW (+56%) | • U/C: 395MW (+112%) |
Beyond capacity growth, the report highlights how development strategies are evolving across APAC. As infrastructure requirements become more demanding, developers are increasingly prioritising deployment speed, operational efficiency, sustainability, and long-term scalability.
Pritesh Swamy, Head of Research & Consulting for the Data Centre Group in Asia Pacific, said: “We're seeing developers move beyond traditional data centre blueprints as infrastructure requirements become more demanding. In most markets, speed to market is increasingly shaping development decisions. Modular construction approaches and advanced cooling technologies are helping operators maximise available infrastructure while shortening deployment timelines. As computing environments become denser, operators are also placing greater emphasis on resource efficiency and long-term sustainability, including how power and water are managed as facilities scale.”
South Korea Market Overview
South Korea is also witnessing strong momentum in data centre demand and development. According to Cushman & Wakefield Korea, robust demand regarding data centre site selection and leasing have been increasing, predominantly in the Seoul Metropolitan Area, driven by the spread of AI and cloud services. Reflecting this demand, operational capacity in Greater Seoul increased by 10% to 663MW in H1 2026, while colocation vacancy tightened sharply from 6.9% in H2 2025 to just 1.1% in H1 2026. In particular, the shift in development interest toward locations near to urban areas such as Incheon and Ansan in Gyeonggi Province, where power supply has been available alongside strong industrial infrastructure, is seen as aligning with broader trends across the region.
YJ Choi, Executive Director at Cushman & Wakefield Korea, stated, “The Seoul Metropolitan Area remains the prime data centre market in Korea and continues to attract domestic and international operators through high customer demand. Demand for sites in regional locations, such as Gyeongsang Province, is also increasing as competition for powered sites in the capital area intensifies. The value proposition for regional locations is the healthy supply of large, powered sites coupled with strong infrastructure available given the area’s industrial history. These locations can help groups scale operations meaningfully, secure visibility on future phases and respond to the sector’s increasing power density demands from advances in computing technology.
APAC Data Centre Market Maturity Index
Cushman & Wakefield's APAC Data Centre Maturity Index tracks 30 markets across the region and provides a comparative view of their maturity and growth potential. The index evaluates markets based on operational capacity, development pipeline, vacancy levels, operator presence and long-term growth prospects, grouping them into four categories: Powerhouse, Established, Developing and Emerging.
The latest index highlights the growing scale and sophistication of APAC's data centre landscape. Johor retained its position as the region's leading market by combined operational and future capacity, exceeding 4GW and widening its lead over its regional peers. Reflecting the rapid expansion of operational capacity and development pipelines across the region, the criteria underpinning the Maturity Index were revised upwards in H1 2026. The higher benchmarks resulted in several market reclassifications, reflecting the pace at which development pipelines and operational capacity continue to scale across the region.
Looking ahead, Australia, India, Japan and Malaysia are on track to surpass 2GW of operational capacity by 2028. "The next wave of growth will be driven by markets that can successfully balance scale, power availability and long-term infrastructure readiness. While traditional hubs will remain critical to the digital economy, we're seeing a broader group of markets emerge as important destinations for future data centre investment, reflecting the growing depth and maturity of Asia Pacific's digital infrastructure landscape," said Green.
For more information and to download the report, please click here.
