Record $11.6B Data Center Investment in APAC Driven by AI Demand

In 2025, Asia Pacific data center investment reached a record $11.6 billion, driven by increased demand for AI capabilities and power availability. Key markets such as Malaysia, Australia, and India are emerging as leaders in this growth, with Malaysia's live capacity increasing by 53% annually. The report from CBRE highlights a shift in investment focus towards power-advantaged locations, reshaping the region's data center landscape. Investors are also favoring asset-specific exposure and improved liquidity, with entity-level transactions reaching $8.3 billion. The emergence of AI-focused cloud providers is further influencing infrastructure deployment across the region. However, some landlords remain cautious due to tenant credit profiles. Overall, the market is maturing with more defined investment structures and capital-recycling models being adopted.

Key Points: • APAC data center investment hit a record $11.6 billion in 2025, driven by AI demand. • Malaysia, Australia, and India are leading the growth in data center capacity. • Investment strategies are evolving with a focus on asset-specific exposure and liquidity.