Digital Realty Survey: 59% of APAC Enterprises Plan 25%+ AI Investment Increase, Australia Leads ROI While Singapore Faces Largest Infrastructure Gap

Survey Overview: APAC AI Investment Surpasses Global Average

Digital Realty's 2026 Global Data Insights Survey reveals the strong momentum of AI investment in the Asia-Pacific region. The survey covered 707 IT decision-makers from seven markets — Australia, Hong Kong, India, Indonesia, Japan, Singapore, and South Korea — with key findings including:

• 59% of APAC enterprises plan to increase AI investment by more than 25% in 2026 (global average: 55%)
• 36% of respondents have already identified high-impact, repeatable AI use cases
• 36% of respondents report achieving measurable business outcomes
• 88% of APAC organizations follow a distributed data approach, but only 22% describe their hybrid infrastructure as fully integrated

These figures indicate that APAC's enthusiasm for AI investment not only surpasses the global average but is also transitioning from proof-of-concept to actual business value creation.

Market Differentiation: Different Priorities Across Seven Markets

The survey reveals significant differences in AI maturity and priorities across APAC markets:

Australia: ROI Achievement Leader

Australian enterprises stand out in AI investment returns:

• 33% of Australian respondents report realized AI ROI — more than double the APAC average of 16%
• 47% of Australian enterprises have deployed real-time AI
• Australia's AI maturity leads other APAC markets, reflecting its history of earlier AI investment

Japan: Regulatory Compliance First

Japanese enterprises prioritize regulatory compliance above all:

• 30% of Japanese respondents identify compliance with AI and data privacy regulations as their top requirement for AI strategy success
• This is significantly higher than the APAC average of 18%
• The Japanese government has committed over ¥10 trillion in public support through 2030 to drive AI infrastructure development

Singapore: Largest Infrastructure Gap

Singapore enterprises face the most severe infrastructure challenges:

• 50% of Singapore respondents cite lack of specialized AI infrastructure as a major challenge to expanding AI plans
• This exceeds the APAC average of 40%
• Despite this, Singapore remains a key APAC AI investment hub, attracting significant data center investment

South Korea: Interconnection Priority

South Korean enterprises place the highest value on reliable interconnection:

• 24% of South Korean respondents rank reliable interconnection as the most critical requirement for AI success
• 46% of South Korean enterprises report having integrated interconnection across cloud and infrastructure platforms
• The South Korean government is targeting KRW 65 trillion in private AI investment through 2027

Hong Kong and India: Emerging AI Markets

Hong Kong and India are rapidly catching up as emerging AI markets:

• India's "IndiaAI Mission" has catalyzed public compute capacity exceeding 34,000 GPUs
• Hong Kong is attracting AI fintech investment, leveraging its financial center status and proximity to mainland China

Macro Context of APAC AI Investment

Record Equity Markets

APAC equity markets raised $327.1 billion in the first nine months of 2026, a 53% year-over-year increase, potentially challenging the 2021 record of $557.6 billion. High-tech companies accounted for 38% of total fundraising (approximately $125.8 billion), with AI infrastructure investment as the primary driver.

Government-Led Strategic Investment

Governments are actively driving AI infrastructure development:

Long-Term Growth Projections

IDC estimates that APAC AI and generative AI investment could reach $175 billion by 2028, with a CAGR of 33.6%. Global AI infrastructure capital spending is projected to reach $765 billion in 2026, with long-term forecasts reaching $1.6 trillion by 2031.

Key Challenges: Distributed Data and Infrastructure Integration

Despite high investment enthusiasm, the survey reveals core challenges facing APAC enterprises:

Distributed Data Dilemma: 88% of APAC organizations follow a distributed data approach, but only 22% describe their hybrid infrastructure as fully integrated. This gap is particularly pronounced for enterprises operating across multiple markets.

Data Location Strategy: 92% of respondents now tie their data-location strategy directly to their AI plans to account for performance, availability, and local regulatory requirements.

Infrastructure Readiness: 40% of APAC respondents cite lack of specialized AI infrastructure as a major challenge to expanding AI plans, with Singapore's rate reaching 50%.

Investor Sentiment: From Enthusiasm to Caution

Despite record capital flows, the investment climate has shifted from pure enthusiasm to greater caution:

• Increased Selectivity: Investors are becoming more discerning due to weak post-listing performance of several large deals, many trading below offer prices
• High Interest Rate Environment: Elevated global sovereign bond yields provide safer alternatives for capital, making it difficult for companies to justify high valuations based on AI hype alone
• Return Orientation: Success increasingly depends on demonstrating "real returns" and measurable business outcomes rather than aggressive, debt-funded expansion

Strategic Recommendations for APAC Enterprises

Based on survey findings, APAC enterprises should consider the following when formulating AI investment strategies:

1. Prioritize infrastructure integration: Before increasing AI investment, ensure hybrid infrastructure integration to avoid data silos
2. Focus on measurable business outcomes: Learn from Australian enterprises' success by setting clear ROI metrics
3. Plan regulatory compliance early: Especially in strictly regulated markets like Japan and Singapore, make compliance central to AI strategy
4. Establish data location strategies: Enterprises operating across multiple markets need clear data sovereignty strategies

Conclusion

Digital Realty's survey clearly depicts the current state of AI investment in the Asia-Pacific region: enthusiasm is high but becoming more rational, investment scale is record-breaking but challenges remain. While 59% of enterprises plan to significantly increase AI investment, those actually achieving ROI remain a minority.

For enterprise leaders across the Asia-Pacific region, the key is to shift from "AI investment" to "AI value realization" — not just increasing investment, but ensuring that investment translates into measurable business outcomes. The success of Australian enterprises demonstrates that early investors often achieve the highest returns.