Major investors target Asia for data centre expansion

Asia is emerging as a prime market for global data centre investments, with major players like KKR & Co, Bain Capital, and Blackstone leading the charge. Driven by a surge in AI and cloud services demand, the region is expected to see a 25% annual growth in data centre needs until 2028, surpassing the US growth rate, Bloomberg reported. Significant investments include Bain Capital’s acquisition of Chindata Group Holdings and KKR’s stake in Singapore Telecommunications’ data centre business. KKR plans a USD1bn investment in Asia-Pacific data centres, with returns aligning with its infrastructure strategy. The market faces challenges, such as complex regulations and environmental requirements, but investors remain focused on exploiting the rapid growth in Asia’s cloud and AI-driven data storage needs.