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Colocation in APAC is expanding far faster than self-build hyperscale deployments, according to Pritesh Swamy, head of data center research and advisory for Asia-Pacific at Cushman & Wakefield
Asia-Pacific will overtake the United States in colocation data center capacity by 2028 or early 2029, according to Pritesh Swamy, head of data center research and advisory for Asia-Pacific at Cushman & Wakefield. Speaking with RCR Wireless News, Swamy said the shift is being driven by rapid development across 14 tracked markets.
“With the total development that’s happening within Asia Pacific… we expect that APAC will become bigger somewhere around 2028 or 2029 or early 2029,” he said. The timeline reflects construction cycles and regulatory conditions across the region.
Colocation is expanding far faster than self-build hyperscale deployments, Swamy noted, largely because of the region’s regulatory and operational complexity. “There are 14 sizable countries where we have data center presence. All of these countries have very different regulatory aspects,” he explained, adding that approvals for construction, environmental permits and telecom permissions involve “many layers” that make self-built hyperscale projects slow and costly.
Hyperscalers increasingly rely on colocation operators because these firms have local expertise and can navigate language barriers, permitting processes and market-specific requirements. According to Swamy, this gives hyperscalers “speed to market” and access to partners who “have more control or access to the market in terms of language or getting the processes approved.”
While Southeast Asia is seeing rising interest, newer markets like Vietnam, Thailand and the Philippines have lagged behind faster-growing hubs such as India or Malaysia. Swamy said these countries are only now improving regulatory and approval frameworks. “It’s only in the recent years where countries such as Philippines, Vietnam have enabled their regulatory processes… making it easier for operators to come into their markets,” he noted.
Even with progress, Singapore continues to serve as the region’s primary hub, often absorbing demand as operators expand across neighboring Southeast Asian markets.
