New research reinforces demand for data center development in APAC countries remains high, with major hubs such as Singapore and Hong Kong continuing to draw interest from hyperscale companies.
But the 3Q 2023 Data center Market Recap from datacenterHawk shows supply backlogs caused by challenges with manufacturing outside of the region are limiting the region’s ability to deliver on new capacity.
Additionally, the recap reports high absorption is leading hyperscale companies to develop large campuses on their own.
Despite limited supply, datacenterHawk expects that future opportunities will alleviate some of the region’s pipeline constraints.
Overall, the recap reports 1.4 GW of absorption and continued growth across global data center markets and power supply challenges worldwide. Major Asian-Pacific (APAC), Europe, Latin America (LATAM), and North America markets experienced significant growth and absorption in 3Q, following datacenterHawk’s 2Q 2023 report of 1.7 GW for the first half of 2023.
Leveraging its proprietary standardized method, the datacenterHawk team provides real-time data to monitor trends and pricing across more than 35 markets in APAC, Europe, LATAM and North America. datacenterHawk’s most updated data and analysis are available in its 3Q summary.
“The global data center industry is experiencing strong growth throughout 2023, with increasing demand and the rise of AI requirements leading the development of new submarkets and opportunities in established and emerging regions,” said David Liggitt, Founder and CEO, datacenterHawk. “We aim to help make sense of how these markets can best overcome challenges and where that might lead to future opportunities in a period of tremendous growth for the industry.”
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