Important security note: Warning of attempted fraud in the name of DWS
We have detected that fraudulent individuals are misusing the "DWS" trademark and the names of DWS employees on the internet and social media. These fraudsters are operating fake websites, Facebook pages, and WhatsApp groups. Please be aware that DWS does not have any Facebook Ambassador profiles or WhatsApp chats. If you receive any unexpected calls, messages, or emails claiming to be from DWS, exercise caution and do not make any payments or disclose personal information. We encourage you to report any suspicious activity to info@dws.com, including any relevant documents and the original fraudulent email. Additionally, if you believe you have been a victim of fraud, please notify your local authorities and take steps to protect yourself.
1/24/2025
Evolving Data Center Landscape in Asia-Pacific
Ivy-sw Ng
APAC Chief Investment Officer
Tommy Law
Institutional Product Specialist Analyst
The data center (DC) industry in APAC continues to demonstrate dynamic growth with no signs of a deceleration. Southeast Asia is at the forefront of this growth, receiving billions of investments from hyperscalers and colocation operators particular in Malaysia and Indonesia. In June 2024, Google Cloud announced a $2 billion investment to develop its first DC in Malaysia, followed by Oracle’s commitment of over $6.5 billion in AI and cloud computing infrastructure in October 2024.
This marks a significant shift of DC development landscape, as DCs have historically been established in developed markets with strong internet infrastructure (Table 1). Yet, these markets are becoming less attractive as AI workloads rise. In contrast to primary markets, the availability of affordable power and water makes secondary markets ideal candidates for DC development. The evolving DC landscape reflects changing DC requirements driven by AI computing, making these emerging markets increasingly appealing for hyperscalers and DC operators.
Before the generative AI boom, the proximity of DCs to demand and internet connectivity were crucial. Conventional DCs prioritized global connectivity over power supply, thriving in developed markets with solid internet infrastructure which are often also regional economic centers with massive demand from corporates. Power requirements were lower, and access to water was not a necessity since air cooling sufficed. However, the emergence of AI computing and the evolving business environment have seemed to make developing markets increasingly attractive for several reasons.
Figure 1: Statistics on APAC DC Markets
Source: Data center capacity: Cushman & Wakefield, as of February 2024. Population: United Nation Population Division, as of December 31, 2023.Electricity Cost and Median Download Speed: World Population Review, as of March 2024. Submarine Cable: TeleGeography, as of December 12, 2024.
On January 13, the U.S. issued a new policy consultation paper to restrict the export of advanced GPUs used in DCs, introducing uncertainties around Southeast Asian emergence as a DC powerhouse. The policy paper proposes a country and entity level export quota, exempting 19 key allies. While hyperscalers are generally exempted from the proposed quotas, local companies face a national limit of 50,000 GPUs. Entities meeting U.S. government security and human rights standards can purchase up to 320,000 advanced GPUs. As demand for computing power accelerates, we anticipate more AI DC with capacities of up to 100,000 GPUs. These export quotas could hinder the long-term development in emerging secondary markets, creating a more cloudy outlook. However, it is too early to assess the policy’s impact, as it is currently in a 120-day consultation period before implementation and its execution is dependent upon Trump administration.
The changing landscape has made emerging secondary markets increasingly attractive for AI data center (DC) development. However, DC development is likely to exhibit a strong clustering effect, with new facilities established near existing DC hubs to leverage the interconnectivity of primary markets. For instance, Batam in Indonesia and Malaysia are gaining popularity due to their proximity to Singapore. Kyushu is emerging as a new DC hub in Japan, complementing the Greater Tokyo and Osaka areas. Additionally, Perth and Queensland in Australia are developing as alternatives to Sydney for access to renewable energy.[6]
While these new markets thrive, established DC markets will likely remain active. Although higher-value AI training workloads may shift to data centers abroad due to their lower sensitivity to latency, lower-value services like cloud servers and tasks that require low latency, such as AI inference, will likely remain in primary markets because of their interconnectivity and proximity to demand. Consequently, both primary and secondary markets will coexist. However, current DCs in developed markets may face challenges in meeting the requirements for AI inference tasks, necessitating significant upgrades and creating new investment opportunities.
The demand for DCs with higher computing power presents an appealing investment opportunity. DC operators are direct beneficiaries. Power generation and utilities companies appear well positioned to benefit as substantial investments are needed to upgrade the power grid as DCs become increasingly energy intensive. Beyond these two obvious beneficiaries, further opportunities could exist upstream in the value chain, particularly among industrial firms that provide Power and Cooling solutions for data centers.
While the largest portion of DC costs is attributed to computing, networking and data storage, it is estimated that at least 40% of the total costs stem from power and cooling. Power management, encompassing power distribution, generators and uninterruptible power systems (UPS) account for the majority of this 40%. The surge in computing power and energy requirements necessitates more robust and efficient DC power solutions.
Efficient cooling is a crucial driver of a DC profitability, as a DC’s capacity is largely determined by its ability to cool servers effectively. As heat generation increases due to greater computing demands, investments in liquid cooling technologies are rising. Within this sector, cold plate liquid cooling, which dissipates heat through plates positioned atop heat generating chips, is projected to grow from 5% to 26% of the DC thermal management market by 2026 as more high-performance compute (HPC) infrastructure expands.[7]In addition, immersion cooling that submerges servers in dielectric fluid has gained lots of tractions due to energy efficiency. Nonetheless, immersion cooling face challenges related to high maintenance cost from IT equipment failures, liquid leakage and evaporation,[8] Investment into immersion cooling technology that minimizes maintenance appear promising. There are also potential opportunities in waste-heat application, such as residential heating, since releasing excess heat into the environment can be detrimental.
Finally, the prefabrication and modular (PFM) sector also may also stand to benefit from the growing demand of DC. Hyperscalers are increasingly deploying PFM solutions that allow portions of the construction process to occur offsite, addressing challenges such as labor shortages and volatile commodity prices in specific markets. PFM effectively shortens construction timelines reduces costs and enhances safety, quality and sustainability through controlled manufacturing environments. Specific opportunities within the PFM sector include structural and architectural components, as well as mechanical, electrical and plumbing (MEP) equipment and modules.
Figure 2: Simple Representation of a Data Center Physical Setup
Source: Public Comps, as of February 4, 2024
HKCFA, July 2024.
Savills Research, May 2024.
Goldman Sachs, April 2024.
DGLT Infra, January 2024.
The Straits Times, November 2024.
CBRE, April 2024.
The Register, May 2023.
Haghshenas et al. Energy Informatics, June 2023.
This information is subject to change at any time, based upon economic, market and other considerations and should not be construed as a recommendation. Past performance is not indicative of future returns. Forecasts are not a reliable indicator of future performance. Forecasts are based on assumptions, estimates, opinions and hypothetical models that may prove to be incorrect. Alternative investments may be speculative and involve significant risks including illiquidity, heightened potential for loss and lack of transparency. Alternatives are not suitable for all clients. Source: DWS Investment GmbH.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries, such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas Inc. and RREEF America L.L.C., which offer advisory services.
Any mentions of specific securities are for illustrative purposes only and should not be considered a recommendation.
This document has been prepared without consideration of the investment needs, objectives or financial circumstances of any investor. Before making an investment decision, investors need to consider, with or without the assistance of an investment adviser, whether the investments and strategies described or provided by DWS, are appropriate, in light of their particular investment needs, objectives and financial circumstances. Furthermore, this document is for information/discussion purposes only and does not and is not intended to constitute an offer, recommendation or solicitation to conclude a transaction or the basis for any contract to purchase or sell any security, or other instrument, or for DWS to enter into or arrange any type of transaction as a consequence of any information contained herein and should not be treated as giving investment advice. DWS, including its subsidiaries and affiliates, does not provide legal, tax or accounting advice. This communication was prepared solely in connection with the promotion or marketing, to the extent permitted by applicable law, of the transaction or matter addressed herein, and was not intended or written to be used, and cannot be relied upon, by any taxpayer for the purposes of avoiding any U.S. federal tax penalties. The recipient of this communication should seek advice from an independent tax advisor regarding any tax matters addressed herein based on its particular circumstances. Investments with DWS are not guaranteed, unless specified. Although information in this document has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness, and it should not be relied upon as such. All opinions and estimates herein, including forecast returns, reflect our judgment on the date of this report, are subject to change without notice and involve a number of assumptions which may not prove valid.
Investments are subject to various risks, including market fluctuations, regulatory change, counterparty risk, possible delays in repayment and loss of income and principal invested. The value of investments can fall as well as rise and you may not recover the amount originally invested at any point in time. Further-more, substantial fluctuations of the value of the investment are possible even over short periods of time. Further, investment in international markets can be affected by a host of factors, including political or social conditions, diplomatic relations, limitations or removal of funds or assets or imposition of (or change in) exchange control or tax regulations in such markets. Additionally, investments denominated in an alternative currency will be subject to currency risk, changes in exchange rates which may have an adverse effect on the value, price or income of the investment. This document does not identify all the risks (direct and indirect) or other considerations which might be material to you when entering into a transaction. The terms of an investment may be exclusively subject to the detailed provisions, including risk considerations, contained in the Offering Documents. When making an investment decision, you should rely on the final documentation relating to the investment and not the summary contained in this document.
This publication contains forward looking statements. Forward looking statements include, but are not limited to assumptions, estimates, projections, opinions, models and hypothetical performance analysis. The forward looking statements expressed constitute the author’s judgment as of the date of this mate-rial. Forward looking statements involve significant elements of subjective judgments and analyses and changes thereto and/or consideration of different or additional factors could have a material impact on the results indicated. Therefore, actual results may vary, perhaps materially, from the results contained herein. No representation or warranty is made by DWS as to the reasonableness or completeness of such forward looking statements or to any other financial information contained herein. We assume no responsibility to advise the recipients of this document with regard to changes in our views.
No assurance can be given that any investment described herein would yield favorable investment results or that the investment objectives will be achieved. Any securities or financial instruments presented herein are not insured by the Federal Deposit Insurance Corporation (“FDIC”) unless specifically noted, and are not guaranteed by or obligations of DWS or its affiliates. We or our affiliates or persons associated with us may act upon or use material in this report prior to publication. DB may engage in transactions in a manner inconsistent with the views discussed herein. Opinions expressed herein may differ from the opinions expressed by departments or other divisions or affiliates of DWS. This document may not be reproduced or circulated without our written authority. The manner of circulation and distribution of this document may be restricted by law or regulation in certain countries. This document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, including the United States, where such distribution, publication, availability or use would be contrary to law or regulation or which would subject DWS to any registration or licensing requirement within such jurisdiction not currently met within such jurisdiction. Persons into whose possession this document may come are required to inform themselves of, and to observe, such restrictions.
Past performance is no guarantee of future results; nothing contained herein shall constitute any representation or warranty as to future performance. Further information is available upon investor’s request. All third party data (such as MSCI, S&P & Bloomberg) are copyrighted by and proprietary to the provider.
Companies involved in artificial intelligence and big data face intense competition, may have limited product lines, markets, financial resources and personnel. Artificial intelligence and big data companies are also subject to risks of new technologies and are heavily dependent on patents and intellectual property rights and the products of these companies may face obsolescence due to rapid technological developments.
For Investors in Canada: No securities commission or similar authority in Canada has reviewed or in any way passed upon this document or the merits of the securities described herein and any representation to the contrary is an offence. This document is intended for discussion purposes only and does not create any legally binding obligations on the part of DWS Group. Without limitation, this document does not constitute an offer, an invitation to offer or a recommendation to enter into any transaction. When making an investment decision, you should rely solely on the final documentation relating to the transaction you are considering, and not the information contained herein. DWS Group is not acting as your financial adviser or in any other fiduciary capacity with respect to any transaction presented to you. Any transaction(s) or products(s) mentioned herein may not be appropriate for all investors and before entering into any transaction you should take steps to ensure that you fully understand such transaction(s) and have made an independent assessment of the appropriateness of the transaction(s) in the light of your own objectives and circumstances, including the possible risks and benefits of entering into such transaction. You should also consider seeking advice from your own advisers in making this assessment. If you decide to enter into a transaction with DWS Group you do so in reliance on your own judgment. The information contained in this document is based on material we believe to be reliable; however, we do not represent that it is accurate, current, complete, or error free. Assumptions, estimates and opinions contained in this document constitute our judgment as of the date of the document and are subject to change without notice. Any projections are based on a number of assumptions as to market conditions and there can be no guarantee that any projected results will be achieved. Past performance is not a guarantee of future results. The distribution of this document and availability of these products and services in certain jurisdictions may be restricted by law. You may not distribute this document, in whole or in part, without our express written permission.
For investors in Bermuda: This is not an offering of securities or interests in any product. Such securities may be offered or sold in Bermuda only in compliance with the provisions of the Investment Business Act of 2003 of Bermuda which regulates the sale of securities in Bermuda. Additionally, non-Bermudian persons (including companies) may not carry on or engage in any trade or business in Bermuda unless such persons are permitted to do so under applicable Bermuda legislation.
© 2025 DWS Investment GmbH, Mainzer Landstraße 11-17, 60329 Frankfurt am Main, Germany.
All rights reserved.
This website is intended to be a general communication and is provided for informational and/or educational purposes only. None of the content should be viewed as a suggestion that you take or refrain from taking any action nor as a recommendation for any specific investment product, strategy, plan feature or other such purpose. Your use of this website indicates that you agree with the intended purpose. Prior to making any investment or financial decision, you should seek individualized advice from a personal financial, tax, and other professionals who are able to provide advice in the context of your particular financial situation.
War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises and related geopolitical events have led and, in the future, may lead to significant disruptions in US and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on the fund and its investment.
Obtain a prospectus
Carefully consider the fund's investment objectives, risk factors, charges and expenses before investing. This and other information can be found in the fund's prospectus. To obtain a mutual fund summary prospectus, if available, or prospectus, call (800) 728-3337 or download one here. To obtain an ETF prospectus call (844) 851-4255 or download one here. To obtain the RREEF Property Trust prospectus, download one here. Read the prospectus carefully before investing.
Investing involves risk including loss of principal. Stocks may decline in value. Bond investments are subject to interest-rate, credit, liquidity, and market risks to varying degrees. When interest rates rise, bond prices generally fall. You cannot invest directly in an index. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Foreign investing involves greater and different risks than investing in US companies, including currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political instability and differing auditing and legal standards. Emerging markets tend to be more volatile and less liquid than the markets of more mature economies, and generally have less diverse and less mature economic structures and less stable political systems than those of developed countries. Funds investing in a single industry, country or in a limited geographic region generally are more volatile than more diversified funds. Performance of a fund may diverge from that of an underlying index due to operating expenses, transaction costs, cash flows, use of sampling strategies or operational inefficiencies. There are additional risks associated with investing in high-yield bonds, aggressive growth stocks, non-diversified/concentrated funds and small- and mid-cap stocks which are more fully explained in the prospectuses, as applicable. An investment in any fund should be considered only as a supplement to a complete investment program for those investors willing to accept the risks associated with that fund. Please read the applicable prospectus for more information.
Shares of exchange traded funds (ETFs) are bought and sold at market price (not NAV) throughout the day on the Fund’s Primary Listing Exchange. There can be no assurance that an active trading market for shares of a fund will develop or be maintained. Transactions in shares of ETFs will result in Brokerage commissions and will generate tax consequences. There are risks associated with investing, including possible loss of principal.
Shares of ETFs may be sold throughout the day on the exchange through any brokerage account. However, shares may only be purchased and redeemed directly from the funds by authorized participants in very large creation/redemption units. There is no assurance that an active trading market for shares of an ETF will develop or be maintained.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
Xtrackers ETFs ("ETFs") are managed by DBX Advisors LLC (the "Adviser"), and distributed by ALPS Distributors, Inc. (“ALPS”). The Adviser is a subsidiary of DWS Group GmbH & Co. KGaA, and is not affiliated with ALPS.
XtrackersTM is a trademark of DWS Group. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. Your use of this site signifies that you accept our Terms & Conditions of Use.
This site is intended for U.S. investors only.
Copyright © 2025 DWS Group GmbH & Co. KGaA. All rights reserved.
DWS Distributors, Inc. Member FINRA | FINRA BrokerCheck
Important information – U.S.
This website is intended to be a general communication and is provided for informational and/or educational purposes only. None of the content should be viewed as a suggestion that you take or refrain from taking any action nor as a recommendation for any specific investment product, strategy, plan feature or other such purpose. Your use of this website indicates that you agree with the intended purpose. Prior to making any investment or financial decision, you should seek individualized advice from a personal financial, tax, and other professionals who are able to provide advice in the context of your particular financial situation.
DWS does not render legal or tax advice, and the information contained in this communication should not be regarded as such. The comments, opinions and estimates contained herein are based on or derived from publicly available information from sources that we believe to be reliable. We do not guarantee their accuracy. This material is for informational purposes only and sets forth our views as of this date. The underlying assumptions and these views are subject to change without notice.
For institutional client and registered representative use only. Not for public viewing or distribution.
War, terrorism, sanctions, economic uncertainty, trade disputes, public health crises and related geopolitical events have led and, in the future, may lead to significant disruptions in US and world economies and markets, which may lead to increased market volatility and may have significant adverse effects on the fund and its investments.
Past performance is not indicative of future returns. No assurance can be made that investment objectives will be achieved.
To obtain a summary prospectus, if available, or prospectus, for Institutional money market funds distributed by DWS Distributors, Inc., download one now or call Institutional Investor Services at (800) 730-1313, Monday through Friday, 8:30 am to 6:00 pm ET. We advise you to carefully consider the product's objectives, risks, charges and expenses before investing. The summary prospectus and prospectus contain this information and other important information about the investment product, including management fees and expenses. Please read the prospectus carefully before you invest or send money.
Forecasts are based on assumptions, estimates, opinions and hypothetical models that may prove to be incorrect. Investments come with risk. The value of an investment can fall as well as rise and your capital may be at risk. You might not get back the amount originally invested at any point in time.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries, such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
Certain DWS products and services may not be available in every region or country for legal or other reasons, and information about these products or services is not directed to those investors residing or located in any such region or country.
© 2025 DWS Group GmbH & Co. KGaA. All rights reserved.
DWS Distributors, Inc. Member FINRA FINRA BrokerCheck
Financial Professional
Individual Investor
Institutional Investor
The DWS Americas website is published in the United States (US) for investors or institutions who are residents of the US. Investors or institutions outside of the US are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this website. A Financial Professional is considered to be an Institutional investor, and the content prepared on this website is intended only for US Institutional investors and their financial representatives, and may not be suitable for and/or available to all investors. By clicking “accept and continue” below you are confirming that you are a US Financial Professional.
The information on this website should not be construed as an offer or solicitation of securities or services or an endorsement thereof in any jurisdiction or in any circumstance that is otherwise unlawful or not authorized. The information contained on this website is not intended as investment, accounting, tax or legal advice, but to the extent may be deemed to be a financial promotion under non-US jurisdictions, is provided for use by professional investors only and not for onward distribution to, or to be relied upon by, retail investors. Products and services may be provided in various countries by the subsidiaries and joint ventures of DWS.
Nothing contained herein is fiduciary or impartial investment advice that is individualized or directed to any plan, plan participant, or IRA owner regarding the advisability of any investment transaction, including any IRA distribution or rollover.
The brand DWS represents DWS Group GmbH & Co. KGaA and any of its subsidiaries, such as DWS Distributors, Inc., which offers investment products, or DWS Investment Management Americas, Inc. and RREEF America L.L.C., which offer advisory services.
R-070495-4 (7/25)
