APAC Data Center Pipeline Hits Record 26.5 GW as AI Pre-Leasing Tightens Supply

Asia-Pacific's data center development pipeline reached a record 26.5 GW in the first half of 2026, driven by surging investment in AI and cloud infrastructure across the region, according to a new report from Cushman & Wakefield. The milestone comes as colocation vacancy rates continue to decline, underscoring the region's urgent need for additional capacity to meet accelerating demand.

During the six-month period, the pipeline grew by 7.1 GW—one of the strongest half-year increases on record. Of the total 26.5 GW, approximately 4.8 GW was under construction while 21.7 GW remained in the planning stage. The region also brought about 1.4 GW of new operational capacity online during the period. Despite those deliveries, colocation vacancy rates fell from 10.9% in the second half of 2025 to 10.3%, indicating that customer demand continued to absorb new supply at a rapid pace.

"New supply is being absorbed quickly, with a growing share of capacity pre-leased before delivery, meaning much of the new stock is already committed when it becomes operational," said Pritesh Swamy, head of research and consulting at Cushman & Wakefield's Asia-Pacific data center group. "While conditions vary across markets, we expect this trend to continue as strong demand and limited new supply keep availability tight." Swamy added that power constraints, longer development timelines, and evolving technical requirements are prompting customers to commit to capacity well before project completion.

Southeast Asia accounted for roughly half of all capacity under construction in the region, with 2.38 GW. Malaysia led with 1.04 GW under construction, followed by Thailand with 859 MW, with much of the expansion concentrated in Johor, Indonesia, and Bangkok. Johor's construction pipeline grew 91% to 602 MW while its overall development pipeline rose 28% to 3.09 GW. When existing and future capacity are combined, Johor exceeds 4 GW, making it the largest market in Cushman's APAC maturity index. Bangkok's construction pipeline jumped 148% to 859 MW, while its total development pipeline nearly doubled to 2.08 GW. Sydney's pipeline increased 65% to 2.13 GW, Jakarta's grew 56% to 1.70 GW, and Mumbai's expanded 31% to 1.73 GW.

Japan added 293 MW of operational capacity, lifting its total to 1.8 GW and moving ahead of India as APAC's second-largest operational market behind mainland China. Cushman projects that Australia, India, Japan, and Malaysia will each exceed 2 GW of operating capacity by 2028. Greater Seoul, meanwhile, recorded just 1.1% colocation vacancy in the first half of 2026—an exceptionally tight market where operational capacity rose 10% but the pipeline remained nearly flat.

Major projects are underway across the region to meet AI and cloud demand. CoreWeave is expanding its AI cloud platform with three facilities in Indonesia, totaling 360 MW of contracted IT power in Greater Jakarta, expected to come online in 2028 and serving AI labs, startups, enterprises, and government customers across Southeast Asia. In July, Digital Edge acquired land in South Korea to develop 60 MW of AI-ready data capacity, supported by a 90 MVA power agreement and featuring dual-feed power architecture backed by two independent 154 kV substations. In June, Gorilla Technology Group announced plans for a 200 MW AI data center campus in Korat, Thailand, with six data halls supporting 150 MW of IT load and approximately 76,000 GPUs at full deployment. Also in June, CDC Data Centres in Australia secured a record 555 MW contract with an unnamed U.S. customer, with capacity scheduled to enter operation across new campuses in fiscal 2028 and 2029.

The composition of the pipeline is as important as its size. Roughly 82% remains planned rather than under construction, leaving delivery dependent on power connections, land, permitting, financing, and equipment availability. Cushman concludes that APAC has entered a period of "power-constrained execution." While data centers historically clustered around network connectivity, AI infrastructure requires far greater electrical capacity and higher-density cooling. Development is shifting from saturated hubs toward peripheral districts and entirely new markets capable of supplying power at scale.

However, the shift does not mean established hubs are losing demand: Tokyo had just 4.4% vacancy and Singapore 4.8% in the first half of the year. Nevertheless, land and power constraints are limiting conventional expansion. "Tight availability is likely to support rental growth and encourage further development, although rental data varies by market," Swamy said. "More importantly, power and land constraints are increasingly influencing where new capacity can be built." This is encouraging developers and hyperscalers to look beyond established hubs toward secondary markets that can offer scalable power, land, and connectivity.