KKR, Bain Capital Lead Investments in Asia's Data Centers Amid AI, Cloud Services Boom

Despite challenges, the region's annual growth rate of 25% until 2028 significantly surpasses the U.S., attracting global investors.

Private equity firms KKR & Co Inc and Bain Capital are leading investments in data centers across Asia, driven by the region's expanding computing and data storage needs.
The demand is being propelled by the ongoing AI explosion, growth in cloud services from giants like Amazon and Alphabet, and rising data and storage requirements due to the region's burgeoning population.
Demand in Southeast Asia and North Asia is predicted to grow approximately 25% annually until 2028, significantly surpassing the 14% annual growth in the U.S.
Bain Capital announced a deal to privatize Beijing-based data center business Chindata Group Holdings with an equity value of $3.2 billion and KKR agreed to purchase a 20% stake in Singapore Telecommunications Ltd's regional data center business for approximately $800 million.
Despite challenges such as complex local regulations and environmental requirements, the potential returns seem to outweigh the risks, with the anticipation that Asia will make up a larger portion of global cloud revenue in the near future.