Singapore remained the largest data centre market in Asia Pacific in the second half of 2017, according to a CBRE report.
During the period, the city-state housed 315.8MW worth of data centres, accounting for 32 percent of the 1,005MW total supply. This is in comparison to Hong Kong’s 24 percent and 22 percent each for Sydney and Tokyo.
“Singapore retained its place as the main tier I data centre hub in Asia Pacific in H2 2017. Growth continued to be driven by an international base which either must be based in Singapore from a latency or regulatory perspective,” noted CBRE.
It underscored that for data centre providers seeking to establish a regional business in Asia Pacific, setting up a presence in Singapore is considered necessary. This is due to the city-state’s ease of doing business, high-quality network connectivity, and position as a first point of call for multinationals entering the region.
However, new data centre stock in Singapore fell from 18MW to 11.6MW over a six-month period, most of which were in the Keppel Digihub facility. At the same time, net absorption dropped from 30.8MW to 21.4MW.
“Despite the upbeat fundamentals, net absorption in H2 2017 was unable to match the very high figures recorded in H1 2017,” noted CBRE.
Nevertheless, the occupancy level furthered tightened to 91 percent with vacant capacity of 29.7MW, while rental prices remain unchanged at $282 to $326 kW per month.
Looking ahead, CBRE expects future data centre supply in Singapore to be lower, while net absorption and rental prices are forecasted to remain stable.