Asia-Pacific data center capacity set to double by 2030

The Asia-Pacific region is experiencing a significant surge in data center demand, driven by the rapid expansion of hyperscalers such as Amazon, Google, and Microsoft. According to Bank of America, the region's data center capacity is projected to double within the next five to six years, with a compound annual growth rate of 14%. This growth is expected to add nearly 2 gigawatts of new capacity annually, reflecting the increasing reliance on cloud services and AI technologies. Between 2018 and 2023, the region saw approximately 1 gigawatt of new capacity added each year, indicating a notable ramp-up in response to the growing demand for AI data centers. The localization of latency-sensitive workloads is anticipated to further boost this demand in the next 18 to 24 months, as companies seek to enhance the efficiency of their AI operations. Bank of America highlighted two key stocks poised to benefit from this trend: GDS Holdings and KT Corp. GDS, in particular, has been identified as a strong investment opportunity due to its robust international expansion and leading position in the Korean data center market. The firm has a buy rating on GDS, projecting a nearly 37% upside based on its recent performance and growth potential in the AI sector. Overall, the increasing investments in cloud infrastructure by major tech companies in the Asia-Pacific region signal a significant shift towards enhanced data center capabilities, positioning the region as a critical player in the global data center landscape over the coming years.