Singapore sees demand rise as data centre space shrinks

Neighbouring Johor is also attracting increased investment.

Singapore's data centre market is undergoing a shift as operators and investors adapt to low vacancy rates and rising demand, according to Knight Frank’s latest Global Data Centres Report.

With vacancy below 1%, Singapore’s market is seeing a growing focus on smaller, high-value rack transactions rather than large-scale deployments.

Some operators are now securing prices above $1,315.79 (U$1,000) per rack, highlighting the premium attached to limited capacity in the city-state.

Whilst Singapore remains one of Asia Pacific’s leading data centre hubs, neighbouring Johor, Malaysia is attracting increased investment as hyperscale providers seek alternative expansion options.

Johor is forecast to grow its data centre capacity by 85% over the next two years, backed by $6.18b (US$4.7b) in planned investments.

Asia Pacific led global data centre investment in 2024, attracting $20.39b (US$15.5b) in cross-border capital — the highest of any region.

The report forecasts that the region will add approximately 8 gigawatts of new capacity through 2026, accounting for an estimated capital expenditure of $31.58b (US$24b).

Around 25% of this capacity is expected to be dedicated to AI workloads, a share lower than global averages due to US export controls and the region’s current standing in AI infrastructure deployment.

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