Global real estate consultancy CBRE projects that Asia Pacific’s data center market will sustain strong growth momentum in 2026, driven by surging AI infrastructure demand that is simultaneously boosting colocation and hyperscale segments while attracting large-scale institutional investment.
Structural Shift Toward AI-Native Infrastructure
The defining trend CBRE identifies is the rapid displacement of traditional general-purpose data center models by AI-dedicated infrastructure. Demand for large campus-style facilities exceeding 100 MW capacity is growing markedly, while a new category of operator is emerging: the Neocloud. These purpose-built cloud providers and data centers are specifically engineered for AI and High-Performance Computing (HPC) workloads, responding to the rising demand for GPU-as-a-Service (GPUaaS). Unlike legacy providers, Neoclouds are designed from the ground up around GPU-dense compute environments.
Supply-Demand Imbalance Underpins Growth
While concerns over an AI investment bubble are being debated in the United States, Asia Pacific faces a structurally different dynamic: demand significantly outpaces available land and power supply. According to CBRE’s analysis, global hyperscaler capital expenditure is forecast to reach approximately USD 400 billion in 2026, with the Asia Pacific region positioned to capture a substantial portion of this investment. Major technology firms including Google, AWS, Microsoft, Oracle, and Meta have publicly committed to scaling AI infrastructure through expanded GPU deployments.
Key Market Developments Across the Region
Within Southeast Asia, Malaysia is emerging as a leading alternative hub adjacent to Singapore, bolstered by active national digitalization initiatives. Thailand is actively courting investors by streamlining land and power access, alongside meaningful investment in subsea cable infrastructure. Singapore will maintain its position as a premium hub for specialized AI workloads, with two new tranches of development capacity adding a combined 1.2 GW to the market. On the investment side, CBRE identifies capital recycling as a key emerging theme, with asset owners expected to pursue sale-leaseback structures to unlock capital, likely attracting pension funds and institutional equity investors as acquirers.
Industry Outlook
Despite persistent headwinds — including land constraints, power availability challenges, rising construction costs, and growing concerns over water scarcity — CBRE’s assessment is that the structural fundamentals of Asia’s data center market remain compelling. For investors and operators alike, the region continues to represent one of the most attractive infrastructure opportunities globally as AI adoption broadens across industries.
