Knight Frank Malaysia’s Post

🚀 Exciting developments in the APAC data centre market! Private equity investors and asset managers are gearing up for increased M&A activity in the region, driven by the rising demand for digital infrastructure fueled by AI advancements. Moody’s forecasts a doubling of APAC data centre capacity by 2028, with a projected USD 564 billion in investments over the next five years. Notably, Australia is set to witness a 20% growth in its data centre capacity between 2023 and 2025, highlighting the region's commitment to technological advancement and expanding digital ecosystems. 🤖 Recent transactions like Asia-Pacific Strategic Investments' USD 150 million acquisition of Mobii Genius in April 2024, along with plans for data centres in Malaysia, are reshaping the digital landscape in APAC. These strategic moves underscore the region's dedication to enhancing technological capabilities and fostering a robust digital infrastructure. #APAC #Technology #Investment #PrivateEquity #MergersAndAcquisitions #DataCenters #TMT Sources: - https://lnkd.in/gkt_Yf8q - https://lnkd.in/gqzPpjVm - https://lnkd.in/g6RBrEe9 - https://lnkd.in/gMFECGay - https://lnkd.in/gh72v5ND

Where Does the Real Revenue derive from Global Data Centers ? Establishing global data centers in Malaysia yields limited economic benefits and no multiplier effects, as the true value lies in data sharing, a domain where Malaysia currently gains minimal revenue. This shortfall arises from weak data sovereignty laws, minimal local ownership, limited value-added activities, and inadequate digital taxation frameworks. To unlock the full potential of the digital economy, Malaysia must implement revenue-sharing models, strengthen data sovereignty policies, and invest in local technology ecosystems to retain and generate value within the country. #datacenters #datasharing

Bain Capital-backed Bridge Data Centres announced this past week that it has appointed the former head of a Malaysian government agency established to promote development of the tech industry to help lead the company’s business in the Southeast Asian nation. Read more: https://lnkd.in/gh886Bgc

Every data centres in Malaysia need to come together to join an official association and fund it so that it has a real voice? As a hot sector, many people like to give some views and may very well affect the operating environment. Here is one so that you guys are aware. ———————————————————————— Malaysia has immense potential to be the regional data centre hub capable of handling more than 600 million users. National Tech Association of Malaysia (Pikom) research committee chair Woon Tai Hai said that over the past few years, the country has seen many data centre investments, as global players see Malaysia as a strategic gateway into the Asian market. “We have seen quite a number of data centres coming into Malaysia, even prominent players like Amazon, Google, Nvidia and Microsoft. “We are working with the government to formulate policies in the areas of talent, natural resources like water and electricity that data centres utilise and also on how local players can be part in these investments,” he said at the launch of the Pikom Economic and Digital Job Market Outlook 2024 Report today. He also said that Malaysia’s digital economy continues to have a significant impact and serves as a cornerstone for the country’s long-term growth and competitiveness. “With strong government support, increasing private sector collaboration, and a growing pool of skilled digital professionals, Malaysia is well on our way to becoming a regional digital leader. “The opportunities are immense, and if we remain focused on nurturing talent, fostering innovation and bridging salary gaps, we as a nation can continue to unlock the full potential of our digital economy and solidify our position on the global stage,” Woon said. He also said the government, related agencies, and stakeholders must make concerted efforts to upskill and retain local digital talents rather than lose them to foreign players who offer salaries in US dollars. “We must offer the best for local digital talents and prevent this ‘talent theft’. We cannot afford to see local data centre players losing out to foreign players,” Woon said.

Hanoi, The Gulf Observer: Vietnam's data centre sector is experiencing a surge in growth, spurred by recent reforms and foreign investments in digital infrastructure. With an open investment environment and a shift in focus from other Southeast Asian markets, Vietnam is poised to become a significant player in the regional data centre landscape. #Digital #Investments #Reforms #Vietnam

🌐⚡ Over the next 5 -10 years, hundreds of billions of investment capital will be required to support the tremendous demand for data centres. Michelle Lee, Managing Director of Private Funds (Data Centre), CapitaLand Investment (#CLI), shared her insights at the Asia Pacific Real Assets Association (APREA) Asia Pacific Real Asset Leaders’ Congress in Tokyo, citing how megatrends such as digitalisation, cloud computing and AI are fuelling this demand and how data centres can be an institutional investment grade asset. The resilient data centre sector has strong fundamentals, increasing deal flow and a huge potential for scale. There is also a range of investment opportunities available to investors with different risk appetites – from stable operating assets through REIT investments, to new developments or value-add opportunities offering higher risk-adjusted returns through private fund investments.    To navigate the unique considerations in the sector such as power availability & reliability, supply chain constraints, design flexibility, technology and sustainability, it is important for investors to seek partners with ‘boots on the ground’ and specialist capabilities. 💡CLI has started investing in data centres since 2005. With its vertically integrated data centre capabilities, CLI is well-positioned to partner investors in this exciting journey of investing in data centres. For more on CLI’s data centre expertise and views on the industry, read our latest research report: https://lnkd.in/gDuu_BbN   The panel also featured Diarmid Massey, CEO, Data Centres, ESR, Nori Matsushita, Head of Japan, AirTrunk, Alistair LaBrooy, CTO, AREA Real Estate Advisory Sdn Bhd, and Kenji Utsumi, Partner, Nagashima Ohno & Tsunematsu. #DataCentres #Invest #PrivateEquity #AI #RealEstate

📣 GREAT NEWS FOR VIETNAM DATACENTER'S INDUSTRY ! Through government-investor collaboration, key roadblocks are being removed, paving the way for significant growth. Here are some key takeaways : 💰 Attractive investment policies: New policies aim to attract major international players in the data center field. 🏖 New dedicated data center hubs: Development of new high-tech industrial areas specifically for data centers, including Ho Chi Minh City and the up-and-coming Danang. Our data will be chilling near the ocean while we'll be at the office, how unfair ! 💪 Investing in the future of data infrastructure : Vietnam is investing in 6G research and a national digital transformation program, focusing on infrastructure to compete with advanced APAC players in the data center industry. 💡 Major shifts are coming up and we're there to see it ! https://lnkd.in/g5dA9S-s Vy (Daisy) Pham Thư Hồ #VietnamDataCenter #Investment #DigitalTransformation #HanoiCDC #Datacenter

🌐 Vietnam's Data Center Market - A Golden Opportunity for Global Investors Vietnam's digital economy is rapidly expanding, and the revised Telecommunications Law is a game-changer. With 100% foreign ownership now allowed, the doors are wide open for global investors to tap into one of Southeast Asia's fastest-growing data center markets. 📈 Projected to reach over $1 billion by 2028, Vietnam offers: - A booming internet user base (78.4M+) - Favorable government policies - Strategic location for regional expansion At USDC Technology JSC., we're here to help you navigate this exciting landscape with end-to-end data center solutions. Ready to invest in Vietnam's digital future? #DataCenters #Vietnam #DigitalEconomy #InvestmentOpportunities #USDCTechnology #CloudInfrastructure

Investors can earn stable and sustainable returns in Japan's data centre market despites challenges around power constraints and labor shortages, while Korea’s demand and supply dynamics have resulted in favourable valuations and cap rates for data centre assets. Industry experts from ESR Group, Gaw Capital Partners, and DC Byte highlighted the continued growth in digital infrastructure demand in both markets. Watch more on MTD TV: https://lnkd.in/gViNq2CC  #APAC #DataCentre #RealEstate Diarmid Massey, CEO, Data Centres, ESR Group Phillipa Weber, Director of Business Development, IDC, Gaw Capital Partners Jingwen Ong, APAC Research Manager, DC Byte

The AI data center industry is launching into 2025 with significant momentum. At Mar-a-Lago, President-elect Donald Trump announced a remarkable $20 billion foreign investment led by Hussain Sajwani, founder of DAMAC Group, aimed at building new data centers across the United States.  Last year, Sajwani highlighted his commitment to data center investments in Asia, specifically in Indonesia, Malaysia, and Thailand, totalling $960 million. He is also active in Europe, where he purchased land in Spain for a $400 million data center project in Madrid and is exploring opportunities in various other cities. Edgnex Data Centers by DAMAC is progressing with the construction of a third data center in Saudi Arabia and acquiring land in the UAE, while also developing data centers in Izmir. Furthermore, there’s a €150 million investment in collaboration with PPC S.A. to initiate a data center project in Spata, East Attica, marking a significant step for Greece's digital transformation. With this announcement of further global expansion into the US market, DAMAC Properties is certainly starting the year on an impressive note! https://lnkd.in/dKwXJPCp #USA #DonaldTrump #datacenter #investment #uae #expansion