In the world’s most populous region, deals are accelerating as countries and companies respond to booming demand for AI. Industry executives emphasize the need for increased data capacity.
Asia Pacific, including Japan, leads global data centre dealmaking this year. M&A value reached $840.47 million, over half the global amount, according to LSEG data.
In 2023, the region’s data centre deals hit a record high of $3.45 billion, according to LSEG. That tally is set to be surpassed this year with at least a couple of large transactions in the pipeline.
Global investment powerhouse Blackstone Inc (BX.N) is among several financial sponsors eyeing AirTrunk. The company owns 11 hyperscale data centres in Australia and the region.
AirTrunk owners, Macquarie Group (MQG.AX) and Canada’s Public Sector Pension Investment Board (PSP), are aiming to value the business at up to A$15 billion ($9.8 billion), sources said, in what could be Asia’s largest data centre transaction this year.
AirTrunk, Blackstone, Macquarie and PSP declined to comment.
“The new capacity that needs to be built in Asia Pacific in the next three to five years is simply mind blowing. My expectation is that deal flow in the data centre space will intensify in 2024.”
Moreover, governments across Asia are recognizing the strategic importance of data infrastructure in fostering economic growth and innovation.
The AI boom presents a unique opportunity for Asia to solidify its position as a leading destination for data centre investment and innovation.
Consequently, the AI boom presents a unique opportunity for Asia’s data centre investment and innovation.
As the region continues to embrace digital transformation, the Asia data centre market anticipates unprecedented growth. Furthermore, stakeholders expect expansion in the coming years.
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