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The APAC Data Center Colocation Market was valued at USD 17.14 Billion in 2023, and is expected to reach USD 30.69 Billion by 2029, rising at a CAGR of 10.20%. Speak directly to the analyst to clarify any post sales queries you may have.
KEY HIGHLIGHTS
- The deployment of 5G services and the growth in the demand for connectivity in new locations and Tier I and Tier II cities attract investments from edge data center operators. For instance, edge operators, such as Leading-Edge Data Centres and Edge Centres, actively invest in establishing multiple edge data centers across Indonesia, Australia, Malaysia, the Philippines, Thailand, India, Vietnam, Thailand, and others.
- Governments and data center operators are becoming increasingly interested in renewable energy. Governments across all APAC countries are taking initiatives to promote the adoption of renewable energy sources. For instance, Taiwan aims to generate 20% of its electricity through renewable energy by 2025 using wind and solar PV promotion plans. Taiwan’s renewable power capacity will reach over 26 GW within the next five years.
- Data center operators also participate in governments’ efforts to adopt sustainable energy by using renewable energy, signing Power Purchase Agreements (PPAs), or setting targets for carbon-free operations. For instance, in March 2024, NTT DATA signed a new solar energy PPA of around 40 MW with TEPCO.
KEY TRENDS
Increased Digitalization
- Digitalization is a major agenda of governments in all countries, including Malaysia, Thailand, India, Australia, Japan, South Korea, China, New Zealand, and others.
- Several governments plan digital strategies to strengthen the digital growth of their countries. For instance, the government of Australia launched its Digital Economy Strategy 2022 Update to develop Australia's digital economy by 2030.
Rise in Mergers and Acquisitions & Joint Ventures
- The significant growth potential and revenue-generating opportunities in the APAC data center market prompt operators to continuously invest in mergers and acquisitions and engage in project joint ventures. Several global organizations enter the industry through joint ventures. For instance, STACK Infrastructure entered the South Korean industry through a joint venture with ESR Cayman to develop a data center.
SEGMENTATION INSIGHTS
- The development of colocation data centers dominates the data center construction market in APAC in terms of the number of investments. Several new entrants enter the market for the development of colocation data centers. Hyperscale data center operators also increase their market presence with investments in cloud regions. In 2023, some countries, such as Indonesia, Australia, and Myanmar, also witnessed investments in enterprise data centers.
- The APAC data center colocation market has strong growth potential in electrical infrastructure due to the high demand for lithium-ion and nickel-zinc batteries used in UPS systems. Operators can also adopt new-age generator sets that run on hydrotreated vegetable oil (HVO), natural gas, etc.
- The APAC data center colocation market demands air- and water-based cooling solutions in terms of cooling infrastructure. Data center operators, especially in Southeast Asia, are more inclined toward adopting water-based cooling solutions due to the tropical climate. The market has opportunities for rack infrastructure vendors with the growth in the adoption of racks of 42U to 52U in height. Some countries in the region also adopt racks below 42U height.
The report includes the investment in the following areas:
Segmentation by Colocation Services
1. Retail Colocation2. Wholesale Colocation
Segmentation by Infrastructure
1. Electrical Infrastructure2. Mechanical Infrastructure
3. General Construction
Segmentation by Electrical Infrastructure
1. UPS Systems2. Generators
3. Transfer Switches & Switchgear
4. PDUs
5. Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
1. Cooling Systems2. Racks
3. Other Mechanical Infrastructure
Segmentation by Cooling Systems
1. CRAC & CRAH Units2. Chiller Units
3. Cooling Towers, Condensers & Dry Coolers
4. Economizers & Evaporative Coolers
5. Other Cooling Units
Segmentation by Cooling Techniques
1. Air-based Cooling2. Liquid-based Cooling
Segmentation by General Construction
1. Core & Shell Development2. Installation & Commissioning Services
3. Engineering & Building Design
4. Fire Detection & Suppression
5. Physical Security
6. DCIM/BMS Solutions
Segmentation by Tier Standards
1. Tier I & II2. Tier III
3. Tier IV
GEOGRAPHICAL ANALYSIS
- China dominates the regional market in terms of data center development. India, Australia, Japan, Singapore, and Hong Kong are among the other major markets with high development activities in the APAC data center colocation industry.
- China, India, South Korea, and Indonesia are experiencing substantial growth in the adoption of AI. In addition, Indonesia, Malaysia, and the Philippines are attracting fresh investments from data center operators, making them anticipated choices for data center development in the upcoming forecast period.
- In Southeast Asia, Malaysia and Indonesia stand out as significant market investors. Nevertheless, the projected increase in project announcements is driving anticipation of a gradual investment acceleration over the next two to three years.
Segmentation by Geography
- APAC
- China
- Hong Kong
- Australia
- New Zealand
- India
- Japan
- Taiwan
- South Korea
- Rest of APAC
- Southeast Asia
- Singapore
- Indonesia
- Malaysia
- Thailand
- Philippines
- Vietnam
- Other Southeast Asian Countries
VENDOR LANDSCAPE
- The APAC data center colocation market grew significantly over the last five years with investments from several local and global data center operators. In 2023, APAC dominated the market in terms of total investments.
- Investors in APAC adopt various sustainable designs to ensure that the facility operates at a PUE of less than 1.4, which was not achievable by the operational data center built before 2017. The recent sustainable data center design practices complement innovative air-based cooling solutions, efficient power technologies, and sustainable construction practices.
- The development of hyperscale data center campuses in APAC will bring in a significant revenue opportunity for vendors that offer the fastest-growing technologies, such as liquid immersion cooling, direct-to-chip cooling, lithium-ion UPS, HVO generators, microgrid technologies, renewable power solutions, and net-zero water data centers.
- The APAC data center colocation market witnessed a significant increase in new entrants in the last few years, owing to the market's strong growth potential. The increase in new entrants will increase the competition for existing data center operators, expanding their presence across countries.
- The APAC data center colocation market will bring multi-million-dollar revenue opportunities for construction contractors and sub-contractors operating in the market. It will also attract new companies willing to offer construction services.
Prominent Data Center Investors
- AirTrunk
- Big Data Exchange
- CDC Data Centres
- Chayora
- Chindata Group
- Colt Data Centre Services
- CtrlS Datacenters
- Digital Edge DC
- Digital Realty
- Equinix
- GDS Services
- Iron Mountain
- Keppel Data Centres
- LG Uplus
- NEXTDC
- NTT DATA
- Nxtra by Airtel
- OneAsia Network
- Open DC
- Pi DATACENTERS
- Princeton Digital Group
- Regal Orion
- SpaceDC
- ST Telemedia Global Data Centres
- SUNeVison Holdings (iAdvantage)
- Sify Technologies
- Tenglong Holding Group
- Viettel IDC
- VNET
- Yotta Infrastructure Solutions
New Entrants
- AdaniConneX
- Data Center First
- Edge Centres
- EdgeConneX (EQT Infrastructure)
- Evolution Data Centres
- Hickory
- MettaDC
- Nautilus Data Technologies
- Pure Data Centres
- Vantage Data Centers
- YCO Cloud
- YTL Data Center
- Yondr
KEY QUESTIONS ANSWERED:
1. How big is the APAC data center colocation market?2. What is the growth rate of the APAC data center colocation market?
3. What are the key trends in the Asia-Pacific data center colocation industry?
4. What is the estimated market size in terms of area in the APAC data center colocation market by 2029?
Table of Contents
1. Report Coverage
3. Premium Insights
4. Introduction
5. Market Opportunities & Trends
6. Market Growth Enablers
7. Market Restraints
8. Market Landscape
9. Colocation Services Market
10. Support Infrastructure
11. Electrical Infrastructure
12. Mechanical Infrastructure
13. Cooling Systems
14. Cooling Techniques
15. General Construction
16. Tier Standards
17. Geography
18. Competitive Landscape
19. Prominent Data Center Investors
20. New Entrants
21. Quantitative Summary
22. Appendix
List of Exhibits
List of Tables
Companies Mentioned
- AirTrunk
- Big Data Exchange
- CDC Data Centres
- Chayora
- Chindata Group
- Colt Data Centre Services
- CtrlS Datacenters
- Digital Edge DC
- Digital Realty
- Equinix
- GDS Services
- Iron Mountain
- Keppel Data Centres
- LG Uplus
- NEXTDC
- NTT DATA
- Nxtra by Airtel
- OneAsia Network
- Open DC
- Pi DATACENTERS
- Princeton Digital Group
- Regal Orion
- SpaceDC
- ST Telemedia Global Data Centres
- SUNeVison Holdings (iAdvantage)
- Sify Technologies
- Tenglong Holding Group
- Viettel IDC
- VNET
- Yotta Infrastructure Solutions
- AdaniConneX
- Data Center First
- Edge Centres
- EdgeConneX (EQT Infrastructure)
- Evolution Data Centres
- Hickory
- MettaDC
- Nautilus Data Technologies
- Pure Data Centres
- Vantage Data Centers
- YCO Cloud
- YTL Data Center
- Yondr
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 534 |
| Published | October 2024 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value ( USD | $ 17.14 Billion |
| Forecasted Market Value ( USD | $ 30.69 Billion |
| Compound Annual Growth Rate | 10.2% |
| Regions Covered | Asia Pacific |
| No. of Companies Mentioned | 43 |
