APAC’s data center pipeline grew by 7,103MW1 in H1 2026 alone, representing one of the strongest half-year increases on record. Despite this surge in supply, vacancy tightened only slightly from 10.9% to 10.3%1.
AI-driven power density is pushing operators to rethink power architecture, accelerate liquid/hybrid cooling, and prioritize their optical interconnect supply chains.
Through ongoing expert discussions, Guidepoint Insights tracks the technologies and supply chain shifts shaping APAC’s next phase of AI infrastructure buildout, from power architecture redesign and liquid cooling adoption to the evolving balance between optical interconnects and traditional fiber supply. These conversations provide clients with timely, on-the-ground insight into the trends driving the market.
Power is becoming the gating factor
As AI racks demand higher power efficiency and lower copper losses, the biggest near-term shift in data center power architecture is the move away from legacy UPS/low-voltage designs toward higher-voltage systems, especially HVDC.
The Guidepoint Insights team organizes regular exchanges with experts, including a Smart Hardware Manager from Scheider Electric, a Data Center Infrastructure Architect from Vertiv Holdings, and the CEO of SpiralGroup, to understand current HVDC adoption trends and identify the companies leading the shift in power architecture.
Key Takeaways:
“Alibaba and Tencent’s larger customized data centers have already switched to HVDC, while ByteDance is testing and may begin partial deployment by 2027.”
“Front-end PSU design is getting harder because of heat dissipation, power consumption, larger cabinet footprints, and the rising number of power units per cabinet.”
“Domestic Chinese deployments are still constrained by lower rack power density than North America.”
“Silicon carbide demand should rise regardless of whether the winning architecture is UPS, HVDC, or SST, because these components remain relevant across all architectures.”
Cooling is moving from optional upgrade to core design choice
With AI workloads driving unprecedented rack density, cooling is now one of the most consequential procurement decisions data centers operators face.
Guidepoint Insights holds regular teleconferences with experts to understand the current cooling technology landscape, adoption patterns and challenges. Participants include a Senior Utility Executive at a Cooperative Utility Firm, a Former Chief Operating Officer & SVP at Samsung HVAC, and a Senior Facilities Executive at a Major Asia Pacific Data Center Operator,
Key Takeaways:
“AI workloads are pushing rack densities beyond what traditional air cooling can support efficiently, which is driving the strongest demand toward liquid and hybrid approaches.”
“Two-phase direct-to-chip is the most discussed “next step” beyond today’s mainstream cooling technology.”
“CDU architecture, quick disconnects, leak detection, and rack-level controls suggest the cutting edge is no longer just the cold plate itself, but the entire cooling system architecture.”
“Specialized cooling equipment still faces pressure on engineering capacity and delivery schedules.”
Optical demand is shifting up the value chain–from commodity fiber to specialised fiber and interconnect
The fastest demand growth is now in data center networking, especially around AI and cloud buildouts, making fiber-based connectivity a critical enabler rather than a secondary component.
Turning to fiber and optical interconnect, further discussions brought together a Former General Manager of Yangtze Optical Fibre and Cable Joint Stock Limited, a Former VP of Cable R&D at CommScope, and a Senior Procurement Executive at a global AI and data center solutions provider, who outlined current demand trends and their implications for the next phase of data center development.
Key Takeaways:
“Fiber and optical interconnect are consistently showing up as a top spending and bottleneck category in data center infrastructure, with challenges also including deployment risk and rising supplier influence.”
“Growth is concentrated in multimode fiber and optical connectivity products which are tied to AI and data center interconnect use cases.”
“China accounts for roughly half of global optical-fiber manufacturing capacity.”
“Copper and fiber are expected to coexist in supercomputing centers over the next 3–5 years because fiber still has advantages in transmission efficiency, weight, and interference resistance.”
Looking ahead
APAC data center infrastructure is increasingly being reshaped across three fronts at once: power architecture, thermal systems, and network interconnects. The most important themes to watch are no longer generic capacity growth, but HVDC power migration, liquid-cooling scale-up, and sustained demand for optical fiber plus higher-value optical interconnect materials.
Through ongoing dialogues with pioneering engineers, research scientists, and infrastructure architects, Guidepoint Insights maintains unique visibility into this sector’s latest developments.
References:
1: https://www.cushmanwakefield.com/en/singapore/insights/apac-data-centre-update
Accelerate your investment research with 120,000+ on-demand expert perspectives.
Please learn more about the latest Guidepoint Insights information here.
