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A Google data centre in Singapore (Credit: Albert Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - Singapore has topped an annual ranking by Cushman & Wakefield for data centre markets in Asia Pacific in 2022. It also ranked second place globally, tying with Silicon Valley.
According to Cushman & Wakefield’s 2022 Data Centre Global Market Comparison report, Singapore scored highly on key criteria such as market size, fibre connectivity and cloud availability, and coupled with its pro-business policies.
These factors propelled Singapore to clinch the top spot in Asia Pacific while also moving up two spots globally from 2021.
Hong Kong and Australia were ranked second and third respectively in Asia Pacific.
Underpinned by a high concentration of global tech companies and strong connectivity, Singapore is the premier data centre hub in the region, serving both local and regional demand.
“Singapore is one of the tightest data centre markets globally with vacancy rates below 2%. Crippled supply due to the ongoing moratorium, coupled with strong demand, has driven up data centre prices since 2020,” says Brenda Ong, executive director, logistics & industrial, at Cushman & Wakefield.
Singapore’s supply is expected to remain tight in 2022, underpinned by land and grid constraints. On the other hand, pent-up demand from hyperscalers and co-location operators continues to accumulate amid a tech-fuelled economy.
To that end, data centre prices in Singapore are expected to continue increasing at a rate of up to 10% per year, while data centre cap rates are expected to compress further due to strong investor demand and limited market supply.