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core cloud and AI / ML workloads being handled in the same assets . Hyperscalers are utilising colocation for smaller , specific deployments and speculative land purchases of 100-150MW are being made by major players .
“ We see significant growth in the cloud market in Asia . We ’ re not pinning all of our hopes on AI and waiting for the AI wave to engulf Asia ,” Diarmid says . “ We see that there is significant cloud build out in the core markets , but not just the tier one markets such as Japan , Korea and Australia , but also the emerging markets , such as Malaysia , Thailand and Indonesia .”
The rise of AI workloads is impacting the logistics of data centres , according to Diarmid . While traditional cloud services require low latency and proximity to population centres , AI applications can often be located in more remote areas , where land and clean energy are more accessible .
“ As AI is coming to the region , we ’ re seeing that complementing the growth in the tier one markets , but it ’ s also increasing the growth rates of emerging markets where perhaps land and power prices are more affordable ,” Diarmid explains . “ The AI workloads , which are less latency dependent , are leading to the build out of newer regions and newer areas .”
This trend is opening up opportunities for ESR to leverage its pan-Asian presence and extensive land bank . The company can repurpose existing logistics sites or develop new campuses that combine data centres with other commercial real estate .
ESR : A competitive edge with a sustainable core While competition in the data centre sector is intensifying , ESR has several key advantages . Access to land and power are critical differentiators , but Diarmid emphasises that ESR ’ s local expertise and deep relationships with contractors across the region give it an edge in project execution .
“ An organisation the size of ESR , which is regularly building across the region , has deeper embedded relationships with general contractors and the construction industry in each market ,” he notes . “ We ’ re able to leverage that to bring
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