Analysts predict that against the background of scaling up the implementation of generative artificial intelligence and cloud computing, the capacity of data centers located in the Asia-Pacific region will double over the next five years.
The Moody’s Ratings report, which was published last week, suggests that the capacity of the mentioned functional facilities in the specified region will increase by an average of 20% per year until 2028 and will reach about 24,800 megawatts (MW). It is worth noting that currently, the corresponding indicator is at around 10,500 MW.
Nowadays, the Asia-Pacific region is one of the fastest-growing technology markets in the world.
Moody’s Ratings analysts also warn that increased data center capacity, combined with rising demand for electricity and water, could trigger the carbon transition risks of the mentioned region.
The specified rating agency also predicts that the Asia-Pacific region will account for about 30% of global capacity expansion over the next five years. Moreover, Moody’s Ratings expects that the total volume of investments in this region will amount to more than $560 billion.
S&P Global predicts that the rapid increase in financial injections into the development of software for elaborating generative artificial intelligence in the Asia-Pacific region will contribute to the expansion of the data center market in this part of the world.
Melissa Incera, research analyst for data, AI, and analytics at S&P Global Market Intelligence, says that North America is currently the largest market in the artificial intelligence area, accounting for about 63% of global revenues. The expert predicts that active investment in other regions to meet the growing local demand for advanced technologies and the infrastructure necessary for their operation will reduce the share of North America and increase the corresponding figure in other geographical zones, including the Asia-Pacific region.
According to S&P Global estimates, by 2028, the Asia-Pacific region will have the most substantial market share in the software sector for the development of generative artificial intelligence. The region’s share of global revenues is expected to reach 20% over the next five years from the current 14%. The share of North America, according to S&P Global forecasts, will decrease to 55% from 63% over the same period.
As we have reported earlier, Malaysia Gains Chinese Investors to Build More Data Centers.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
