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Emerging Markets’ Data Centre Pipeline Could Double Global Capacity
Many new data centres are being planned in emerging-market countries.
If all of them are built, they could be nearly twice as large as the data centres operating worldwide today.
Companies are looking at these countries partly because some developed countries oppose new data centre construction.
Building projects will be easier in places with dependable electricity, clear permits, renewable energy and enough money.
However, data centres need large amounts of electricity and water.
In parts of Asia, including India, growing projects are putting pressure on power systems.
The Middle East has relatively cheap electricity but does not have much water.
Companies may need cleaner power, water-saving cooling systems and desalination technology to keep expanding.
Planned data centre projects in emerging markets nearly equal twice current global operating capacity.
S&P Global Ratings said opposition to construction in developed economies may redirect investment toward emerging markets.
Project development will depend on government policy, resources, infrastructure, permitting, renewable energy and capital.
Energy and water availability are the sector’s main risks, with grid bottlenecks and water stress increasing.
Asia-Pacific, including India, faces power pressure, while Middle Eastern growth is constrained by severe water scarcity.
- Who
- Global data centre operators and developers, as assessed by S&P Global Ratings.
- What
- Emerging markets have a planned data centre pipeline nearly twice the size of current global operating capacity.
- Where
- Emerging markets, particularly Asia-Pacific markets including India and countries in the Middle East.
- When
- The report does not specify a publication date or completion timetable.
- Why
- Operators are seeking expansion opportunities outside developed economies, where opposition to new data centre construction is increasing.
Key facts
- Report source
- S&P Global Ratings
- Planned capacity
- Nearly twice current worldwide operating data centre capacity
- Main risks
- Energy availability and water availability
- Key success factors
- Reliable electricity grids, transparent permitting, renewable energy access and adequate capital
- Asia-Pacific concern
- Rapid expansion is increasing pressure on power infrastructure
- Middle East concern
- Relatively low-cost power supports growth, but acute water scarcity remains a major challenge
- Potential technologies
- Water-efficient cooling, closed-loop cooling and solar-powered desalination










