12 June 2025

The energy gap and power constraints: outlook for high-demand sectors - APAC and the GCC

Our latest Construction Market Insights report examines how energy constraints are affecting projects across sectors, such as Data Centers, High-tech Industrial, Life Sciences, and Commercial.

Key Contact

John Butler
Managing Director – APAC and GCC
APAC
Contact Representative
0
Countries covered
0
Sectors
0
Commodities
0
Expert contributors

Linesight's Construction Market Insights report for APAC and the GCC provides a comprehensive overview of the construction industry across Australia, India, Japan, Malaysia, Singapore, South Korea, Taiwan, the KSA and the UAE.

The report features a macroeconomic overview, industry trends, commodity price movements, a supply chain outlook, sector-specific insights, and a particular focus on how power constraints are influencing project delivery.

Want a glimpse of what’s inside? Explore some of the key insights below and see why this report is essential reading. 

Powering construction’s next chapter

The region’s energy mix is shifting, with renewables rising despite fossil fuel reliance in some areas. Electricity generation is growing, but decarbonisation progress varies. High grid carbon intensity is challenging data centre operators, requiring renewable PPAs, offsets, or on-site clean energy. APAC and GCC show a mixed transition over the past decade. This report explores how power is influencing every stage of project delivery, from planning and procurement to execution, across the region's most critical and energy-dependent sectors. 

Click the button below to access the full report. 

Core market indicators

APAC’s outlook has weakened, with growth projected to slow from 4.6% in 2024 to 3.9% in 2025, per the IMF. This slowdown reflects weaker global demand, limited consumer spending, and rising trade tensions. Despite strong 2024 growth, risks remain due to trade uncertainty and potential asset price volatility. In the GCC, non-oil sector growth and diversification continue to support resilience. 

Visit section >   

APAC and GCC construction recorded a mixed performance. Growth is driven by renewables, data centres, and infrastructure, especially in APAC’s industrial and energy sectors. Commercial activity is strong, while residential is mixed. Tariff uncertainty and economic slowdown continue to weigh on the industry.

Visit section >   

Construction commodities play a crucial role in the global economy, and their prices are subject to fluctuations due to various factors which are outlined in our report. Over 2024, the industry saw market corrections in commodities, although recent tariff announcements could present global supply chain challenges in the near-term.

Visit section >   

Sectors in focus

An overview of the sectors shaping APAC and the GCC’s construction landscape through innovation, investment, and evolving demand.

Data Centres

Investments in water and power infrastructure across the region will have a major impact on data centre planning, supporting expanding digital and technology needs with reliable energy provisions.

Learn more
Life Sciences

We are seeing a considerable rise in life sciences projects in the APAC and GCC regions as investment initiatives encourage strategic hubs that host crucial advanced manufacturing and construction capability.

Learn more
High-tech Industrial (semiconductor and batteries)

Investment in the development of semiconductor fabrication plants and proactive policy environments are securing APAC and the GCC as dominant high-tech regions.

Learn more
Commercial

The commercial market continues to adapt to accommodate changing work patterns and culture, agile workplaces and sustainability initiatives. There's a strong emphasis on sustainable building practices and achieving government-mandated green initiatives.

Learn more
“APAC and GCC construction markets are showing resilience, with growth being driven by mission critical sectors, such as data centres, life sciences and high-tech industrial. This growth will require access to reliable power and renewable energy sources to reach sustainability goals.”
Read More
John Butler
Managing Director - APAC and GCC
In Linesight's CMI reports, we cover macroeconomic factors impacting the construction industry, provide an industry overview including key indicators, and explore four key sectors - Data Centres, Life Sciences, High-tech Industrial and Commercial. Furthermore, this edition is focusing on power as a critical enabler for mission critical and strategic sectors for the construction industry.
Data for the CMI reports comes from a range of both primary and secondary sources. In addition to primary research conducted with stakeholders in the value chain, sources include GlobalData’s Construction Intelligence Center (CIC), the World Bank, IMF and OECD, as well as country-specific national statistics offices, such as the U.S. Bureau of Economic Analysis, Bureau of Labor Statistics, and also industry-specific associations and publications. More information on our methodology is available at the back of the report.
CMI refers to Linesight's Construction Market Insights reports, which provide in-depth analysis of the global construction industry, focusing on specific trends, sectors and regions.
These reports cover Europe, Asia-Pacific and the Gulf Cooperation Council, and the Americas.
Linesight's CMI reports help clients and industry professionals to understand the challenges and opportunities within the construction industry, enabling them to make informed strategic decisions.
SHARE