“Malaysia is emerging as the preferred destination for incremental hyperscale and AI capacity, supported by lower development costs of US$7 million per MW according to Cushman & Wakefield estimates, faster execution and improving renewable energy access,” JP Morgan says, adding that “Singapore optimises every MW; Malaysia captures the next MW”.
In a report dated July 7, JP Morgan points out that Singapore ranks among the most expensive data centre markets globally, with rents at US$330 to US$475 per kw per month. These rents are double those of developed markets such as Sydney and Northern Virginia. In addition, construction costs of around US$12 million/MW are also the highest in Apac.
On the other hand, JP Morgan says that near-full occupancy and firm reversions signal a structurally tight market. Singapore’s proposed Digital Infrastructure Act extends its power usage effectiveness (PUE) requirements of 1.25 to 1.3 as a structural catalyst. Despite the high costs, Singapore remains the region’s premium data centre hub, optimising scarce land and power resources.
