The Worldview: Who Is Building the AI Cloud

APAC Edition

Principal AI | Digital Infrastructure Stack April 2026

Executive Summary

The AI infrastructure buildout in Asia-Pacific is no longer a story about a few hyperscalers leasing space in Singapore. It has become a multi-layered capital deployment involving sovereign wealth, private equity, domestic conglomerates, and a new class of AI-native operators — each occupying a distinct position in the supply chain and financing stack. This note maps who is building, where, and with whose capital.

The APAC colocation market is projected to grow from US$29.6 billion in 2025 to US$68.5 billion by 2030 (18.3% CAGR). Hyperscale capacity alone is forecast to reach US$196.7 billion by 2031. But the headline numbers obscure the real story: the market is stratifying into distinct tiers, each with different risk-return profiles and credit dynamics.

The Demand Layer: Hyperscalers in APAC

The five largest US cloud and AI infrastructure providers — Microsoft, Alphabet, Amazon, Meta, and Oracle — have collectively committed US$660–690 billion in global capex for 2026, nearly doubling 2025 levels. A meaningful share is flowing into APAC.

Microsoft

Microsoft's APAC footprint spans Australia, Japan, India, Indonesia, Malaysia, South Korea, and Thailand. The company committed US$1.7 billion to Indonesian cloud and AI infrastructure in 2024, and continues to expand Azure regions across the corridor. Microsoft is both a direct builder (owned campuses) and a major colocation tenant (Equinix, Digital Realty, AirTrunk).

Alphabet / Google

Google's most significant APAC move is the AdaniConneX partnership in India — a US$15 billion, 1 GW AI data centre campus in Visakhapatnam, Andhra Pradesh, planned over 2026–2030. This is Google's largest AI hub outside the US. Google also designated China-based Envicool as a core CDU supplier (~25% of 2026 cooling procurement), signalling willingness to source from Chinese manufacturers for non-chip components.

Amazon Web Services

AWS continues to expand across APAC with availability zones in Singapore, Tokyo, Osaka, Seoul, Mumbai, Hyderabad, Melbourne, and Jakarta. AWS is the largest single tenant across multiple APAC colocation operators and a primary driver of new campus-scale developments.

Oracle

Oracle's APAC cloud infrastructure buildout has accelerated, though it remains smaller than the Big Four. Oracle is targeting a US$50 billion global capex for 2026, with APAC expansion focused on Singapore, Japan, and India.

The Supply Layer: Who Is Building the Facilities

Tier 1: Global Colocation Platforms

Equinix (NASDAQ: EQIX) The largest neutral colocation operator globally and in APAC. Operates five data centres in Singapore (SG1–SG5), with SG6 under construction (US$260M, 20 MW, expected Q1 2027). In Japan, Equinix has xScale joint ventures delivering ~238 MW of hyperscale capacity in Tokyo with liquid cooling capabilities. In August 2025, Equinix raised S$650 million (US$505M) in green bonds in Singapore.

APAC presence: Singapore, Tokyo, Osaka, Hong Kong, Sydney, Melbourne, Seoul.

Digital Realty (NYSE: DLR) Targeting nearly S$7 billion (US$5.2B) of total investment in Singapore, with S$4.3 billion in new development. Launched Digital Realty Innovation Labs (DRIL) in Singapore and Japan in February 2026 — offering customers pre-deployment testing environments for AI and hybrid cloud workloads, supporting up to 150 kW per cabinet.

APAC presence: Singapore, Tokyo, Osaka, Hong Kong, Sydney, Seoul.

Tier 2: APAC-Native Operators

AirTrunk (Blackstone-backed) Acquired by Blackstone and CPP Investments in 2024 for A$24 billion — the largest data centre transaction ever. AirTrunk has since closed A$16 billion in refinancing to build or operate facilities in Australia, Hong Kong, Malaysia, and Singapore. Expansion into India announced November 2025. Middle East entry via HUMAIN partnership (US$3 billion campus in Saudi Arabia). Management targets growing AirTrunk into an A$100 billion business.

APAC presence: Sydney, Melbourne, Singapore, Hong Kong, Tokyo. Expanding to India, Malaysia, Saudi Arabia.

NEXTDC (ASX: NXT) Australia's largest listed data centre operator. Signed a A$7 billion MoU with OpenAI for the S7 hyperscale AI campus in western Sydney — 550 MW capacity, first phase expected H2 2027. Contracted utilisation grew 29% to 316 MW by late 2025, with a forward order book up 53% to 205 MW. FY2026 capex guidance: A$2.2–2.4 billion.

Presence: 17 data centres across Melbourne, Sydney, Brisbane, Perth, Canberra, Adelaide, Darwin, Sunshine Coast, Pilbara.

STT GDC (KKR / Singtel) KKR and Singtel are completing full acquisition of STT GDC at S$13.8 billion enterprise value, expected to close H2 2026. Pipeline has grown from 1.4 GW to 1.7 GW since KKR's initial investment, with 2.3 GW of design capacity across 12 markets. Vietnam expansion with VNG Corporation (69 MW in Ho Chi Minh City). Launched FutureGrid Accelerator (HVDC-powered AI testbed) in Singapore, January 2026.

APAC presence: Singapore, Japan (Tokyo), Vietnam, Thailand, Malaysia, India, South Korea, Indonesia, Philippines, Hong Kong, UK.

Tier 3: China and International Expansion

GDS Holdings (NASDAQ: GDS / HKEX: 9698) China's largest independent data centre operator. 2025 revenue of RMB 11.4 billion (up 10.8% YoY), adjusted EBITDA of RMB 5.4 billion (47.3% margin). 2026 guidance: revenue RMB 12.4–12.9 billion, capex ~RMB 9 billion.

The critical structural shift: GDS spun off international operations under DayOne in January 2025 to separate Chinese regulatory risk from overseas growth. DayOne operates in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, and Japan. International revenue expanded 1.4x YoY, EBITDA 1.7x. DayOne secured RM 15 billion (~US$3.5 billion) in green financing for Southeast Asian expansion, with total committed power reaching 750 MW.

Risk factor: Malaysia's late-2025 permit tightening affects GDS/DayOne operations, citing power/water constraints and export controls tied to AI chip regulation for Chinese-linked operators.

Tier 4: Indian Domestic Operators

Reliance Industries (NSE: RELIANCE) Building what is reported as the world's largest AI-powered data centre in Jamnagar, Gujarat — planned capacity of 3 GW. Partnering with NVIDIA for chip supply. This single project would more than triple India's current 1.7 GW national capacity.

AdaniConneX (Adani Enterprises + EdgeConneX JV) The Google partnership for a 1 GW AI campus in Visakhapatnam is the headline. US$15 billion investment over five years (2026–2030). Adani Enterprises (NSE: ADANIENT) provides land, power, and local infrastructure; EdgeConneX provides design and operational expertise.

Yotta Data Services (Hiranandani Group) Hyperscale operator with campuses in Navi Mumbai, Greater Noida, and GIFT City. Pivoting from traditional colocation to AI-cloud, having procured 16,000 NVIDIA H100 GPUs. Positioned as India's domestic AI compute provider.

The Capital Layer: Who Is Financing This

The financing of APAC AI infrastructure has shifted from traditional project finance to a hybrid model involving PE, sovereign capital, and corporate balance sheets.

Private Equity and Infrastructure Funds

Investor	Vehicle	Deal	Value
Blackstone	Direct	AirTrunk acquisition	A$24B
KKR	Consortium w/ Singtel	STT GDC full acquisition	S$13.8B EV
CPP Investments	Co-investor w/ Blackstone	AirTrunk	Minority stake
Macquarie (exited)	Prior owner	AirTrunk (sold to Blackstone)	—
DigitalBridge	Direct	Various APAC platform investments	Multiple

Sovereign and Strategic Capital

India's buildout is uniquely funded by domestic conglomerates (Reliance, Adani) deploying balance sheet capital rather than PE-backed structures. This changes the credit dynamic: project risk sits on corporate balance sheets with diversified revenue streams rather than in special-purpose vehicles.

Green and Sustainability-Linked Financing

Equinix's S$650 million Singapore green bonds, GDS DayOne's RM 15 billion green financing, and AirTrunk's A$16 billion refinancing all carry sustainability-linked covenants. ESG-linked capital is becoming the default financing instrument for APAC data centre development, driven by both investor preference and regulatory requirements (particularly in Singapore and Japan).

Geographic Heat Map: Where Capital Is Flowing

Singapore — The Hub Under Pressure

The region's primary interconnection and colocation hub. Capacity-controlled by government allocation. Every major operator is present. Premium pricing, longest waitlists. Overflow demand spilling to Johor Bahru and Batam.

Japan — The Nuclear Advantage

Tokyo and Osaka are the second-largest APAC data centre markets. Japan's nuclear restart gives it a baseload power advantage no SEA market can match. Equinix, Digital Realty, STT GDC, and AirTrunk all have active developments.

India — The Greenfield Frontier

1.7 GW current capacity. Three mega-projects (Reliance 3 GW, AdaniConneX 1 GW, Yotta expansion) could quadruple national capacity by 2030. Funded by domestic corporate capital, not PE. Risk: execution, power grid readiness, and regulatory uncertainty.

Australia — The Sovereign AI Play

The NEXTDC-OpenAI partnership (A$7B, 550 MW) positions Australia as a sovereign AI compute hub. AirTrunk's Blackstone-backed expansion adds further capacity. Relatively stable regulatory environment.

Southeast Asia — The Growth Corridor

Malaysia, Indonesia, Vietnam, and Thailand are all building out. Malaysia leads but faces regulatory tightening. Vietnam is the emerging market (STT GDC + VNG partnership). Indonesia benefits from Meta's cable investments and hyperscaler expansion.