Aggregate colocation supply across the four major APAC markets (Hong Kong, Singapore, Sydney, Tokyo) totalled 865MW as at H1 2017. Singapore with 304MW in total supply, is the largest market constituting slightly more than one-third of total APAC supply. This is followed by Hong Kong, Tokyo and Sydney which each accounted for 26%, 22% and 17% of total supply respectively.
Market growth over the last 12 months has been considerable, with total IT capacity having grown by 17.6% as compared to a year ago. This has led occupancy to remain relatively flattish as the market comes to terms with this supply influx. H1 2017 however saw some respite supply wise, with very few notable new developments completed in the quarter. On the demand end, robust take-up in the Singapore and Sydney markets underpin APAC net absorption of 47.1 MW for the first half of 2017 which helped occupancy to edge upwards.
Take up is being driven by the hyperscale cloud sector, particularly from US based companies. Hyperscale demand has seen a significant increase in individual requirement sizes with requirement quantum of more than 5 Megawatts not uncommon. This helped maintain occupancy levels as a fewer number of transactions are required to fill existing shell or unfitted data centre space. The growth of hyperscale data centres is likely to continue, driven by major trends such as big data, internet of things and video and game streaming.