The skyline of Singapore in Asia Pacific. Image: Adobe Stock

says that the sector will be driven by strong activity in centres, infrastructure, high-tech industrial, and energy.

A new focus in the report is the growing strain on power infrastructure. As energy-intensive sectors expand (such as data centres) the demand for reliable electricity is becoming a critical challenge.

While APAC鈥檚 energy supply has grown over the past decade, grid reliability remains inconsistent. Advanced economies like Singapore, Japan, and South Korea enjoy minimal downtime, while emerging markets continue to face reliability gaps.

Despite Asia being home to 83% of the world鈥檚 coal power, the region is leaning into the shift towards renewable energy and aims to triple renewable capacity by 2030. Significant investments are being made into renewables and grid modernisation, which is expected to help meet the accelerated demand for energy consumption in APAC 鈥� a demand that is growing faster than the global average.

According to the report, APAC is experiencing a surge in data centre investment. Seven of the top ten countries by 5G Standalone (SA) reach were in Asia Pacific, with India at 51% and Singapore at 37%.

The region is poised to be the fastest-growing region for data centre colocation over the next five years with a data centre construction pipeline valued at US$56.4 billion.

In 2024, the construction sector saw commodity price corrections. However, new tariffs may disrupt global supply chains in the near term. In Singapore, prices for key materials like copper, steel rebar, and cement have declined due to global trade uncertainties. Notably, steel rebar prices are forecasted to drop 13% year-on-year in Q2 2025, driven by oversupply and competitive exports from China.

鈥淲hile near-term economic outlook has been clouded by rising trade tensions, we remain cautiously optimistic that APAC is set to show resilient growth in its construction markets with a strong pipeline of planned projects,鈥� said Scott Halyday, regional director, Southeast Asia at Linesight.