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Artificial intelligence
TechTech Trends

AI boom fuels demand for major data centre deals in Asia-Pacific this year

  • The Asia-Pacific has led deal-making activities in the global data centre market this year, with M&A value totalling US$840.47 million
  • In 2023, the region’s data centre deals hit a record high of US$3.45 billion

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Cloud computing services enable companies to buy, sell, lease or distribute a range of software and other digital resources as an on-demand service over the internet, just like electricity from a power grid. These resources are managed inside data centres. Photo: Shutterstock
Reuters
Global private equity investors and asset managers are preparing for billions’ of dollars worth of mergers and acquisitions (M&A) and investments linked to data centres in the Asia-Pacific, as the artificial intelligence (AI) boom fuels demand for digital infrastructure.
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The intense pace of deals in the world’s most populous region comes as countries and companies respond to increasing demand for AI, which calls for more data capacity, industry executives said.

The Asia-Pacific, including Japan, has led deal-making activities in the global data centre market this year, with M&A value totalling US$840.47 million, more than half of the global amount, LSEG data showed.

In 2023, the region’s data centre deals hit a record high of US$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.

Data centres are secure, temperature-controlled facilities that house large-capacity servers and data-storage systems, with multiple power sources and high-bandwidth internet connections. More enterprises are now using data centres to host or manage computing infrastructure for their artificial intelligence projects. Photo: Shutterstock
Data centres are secure, temperature-controlled facilities that house large-capacity servers and data-storage systems, with multiple power sources and high-bandwidth internet connections. More enterprises are now using data centres to host or manage computing infrastructure for their artificial intelligence projects. Photo: Shutterstock
A number of financial sponsors, including global investment powerhouse Blackstone, are looking to acquire AirTrunk, which owns 11 hyperscale data centres in Australia and across the rest of the region, sources close to the transaction said.
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