APAC Data Center Market Landscape 2024-2029

The APAC Data Center Market was valued at USD 83.86 Billion in 2023, and is expected to reach USD 150.59 Billion by 2029, rising at a CAGR of 10.25%.

KEY TRENDS

Increased Digitalization Is Driving the Growth of Data Centers in the APAC Region

• The APAC data center market is experiencing expansion, fueled by the widespread digital transformation across the region. The growing digitalization trend is driving a swift surge in demand for data centers, with various regions implementing their digital strategies.
• The region's rapid adoption of digital technologies is driven by an increasing demand for improved productivity, optimized resource utilization, and various other advantages. The expansion of 5G connectivity, coupled with the utilization of Big Data and IoT services, further contributes to the ongoing digitalization trend in the area.
• China's national development strategy consistently favors the digital economy. In alignment with the 14th Five-Year Plan, China seeks to enhance expertise in critical domains, including quantum information, communications, integrated circuits, sensors, and blockchain. Additionally, it actively promotes emerging technologies such as 6G.
• The Indian government initiated the Digital India program, which encompasses multiple government departments and aims to nurture a future of learning and development for India.

Deployment of Edge Data Centers Fueled by Growing 5G Network Connectivity

• The adoption of 5G technology is widespread in various countries, including China, Australia, Japan, Singapore, and South Korea. The deployment of 5G in multiple locations is propelled by the need for high computing power and enhanced connectivity standards within data centers.
• Some major operators in Hong Kong are China Mobile Hong Kong Ltd, Hong Kong Ltd, SmarTone Mobile Communications Ltd, and Hutchison Telephone Company Ltd.
• The government has uniquely agreed with New Zealand's three primary network providers - Spark, 2Degrees, and One New Zealand. This agreement aims to accelerate the deployment of 5G services in approximately 55 rural and regional towns across the country while extending mobile wireless coverage to additional remote areas that currently lack adequate service.

Rising Adoption of Artificial Intelligence Fueling the Demand for Efficient Infrastructure

• The deployment of edge data centers is fueled by growing 5G network connectivity.
• The adoption of 5G technology is widespread in various countries, including China, Australia, Japan, Singapore, and South Korea. The deployment of 5G in multiple locations is propelled by the need for high computing power and enhanced connectivity standards within data centers.

SEGMENTATION INSIGHTS

• Servers are available in various types and configurations. Regarding form factors, servers are classified as rack, blade, and tower. The most common servers in the APAC data center market include rack and blade servers from vendors such as Cisco Systems, Hewlett Packard Enterprise, Dell Technologies, IBM, Lenovo, and NetApp.
• Vendors have an increasing opportunity to provide lithium-ion and nickel-zinc batteries for UPS systems. Operators can also adopt new-age generator sets that run on hydrotreated vegetable oil (HVO), natural gas, etc.
• The APAC data center market is witnessing the adoption of air - and water-based cooling systems, followed by water-based cooling solutions, which are in major demand due to the region's tropical climate.

Segmentation by Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based
• Liquid-based

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

• The APAC data center market is one of the major growing data center markets globally, with a higher investment contribution from countries such as Australia, India, China, and Japan, with other countries such as South Korea, Taiwan, Hong Kong, and New Zealand with steadily rising data center activities.
• Malaysia and Indonesia have emerged as the major growing markets in the APAC data center market after a setback in Singapore due to a past moratorium on data center construction. Investment in Singapore is expected to rise again after the government announced a pilot project for data center construction.
• Other countries, such as the Philippines, Vietnam, and Thailand, are witnessing a sudden surge in demand, especially from the spillover of demand from Singapore after the moratorium. Countries such as Vietnam and the Philippines are among the markets that are expected to witness a growth rate increase in the coming years.

Segmentation by Geography

• China
• Hong Kong
• Australia
• New Zealand
• India
• Japan
• South Korea
• Taiwan
• Rest of APAC
  • Southeast Asia
  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Philippines
  • Vietnam
  • Rest of Southeast Asia

VENDOR LANDSCAPE

• The APAC data center market hosts several local and global IT infrastructure vendors such as Hewlett Packard Enterprise, IBM, Atos, Cisco Systems, Dell Technologies, Arista Networks, Juniper Networks, and others. Vendors continuously invest in innovations in their offerings to meet market demand.
• The APAC data center market has multiple local and global support infrastructure vendors, which has increased its competitiveness. Some major vendors in the APAC data center market include ABB, Caterpillar, Cummins, Eaton, Rittal, STULZ, Schneider Electric, Vertiv, and others.
• Global general construction contractors such as AECOM, Arup, CSF Group, DSCO Group, NTT Facilities, RED, and others have increased the construction speed, and the availability of a skilled workforce has become easier through multiple organizations.

IT INFRASTRUCTURE PROVIDERS

• Arista Networks
• Atos
• Cisco Systems
• Dell Technologies
• Broadcom
• Extreme Networks
• Fujitsu
• Hewlett Packard Enterprise
• Hitachi Vantara
• Huawei
• IBM
• Inspur
• Intel
• Juniper Networks
• Lenovo
• Micron Technology
• NEC
• NetApp
• Oracle
• Pure Storage
• Quanta Cloud Technology
• QNAP
• Quantum
• Seagate Technology
• Super Micro Computer
• Toshiba
• Western Digital
• Wiwynn

Prominent Construction Contractors

• AECOM
• Arup
• Aurecon Group
• CSF Group
• DSCO Group
• Gammon Construction
• Larsen & Toubro (L&T)
• NTT Facilities
• PM Group
• Studio One Design

Other Prominent Construction Contractors

• AWP Architects
• BYME Engineering
• Chung Hing Engineers Group
• Corgan
• CTCI
• DPR Construction
• Fortis Construction
• Hutchinson Builders
• ISG
• Kienta Engineering Construction
• Linesight
• LSK Engineering
• M+W Group
• Nakano Corporation
• Obayashi Corporation
• Powerware Systems (PWS)
• Sato Kogyo
• Sterling and Wilson
• Red Engineering
• Rider Levett Bucknall
• Turner & Townsend

Prominent Support Infrastructure Vendors

• ABB
• Caterpillar
• Cummins
• Eaton
• Rittal
• Schneider Electric
• STULZ
• Vertiv

Other Prominent Support Infrastructure Vendors

• Airedale
• Alfa Laval
• Canovate
• Cyber Power Systems
• Delta Electronics
• EAE
• Fuji Electric
• Green Revolution Cooling (GRC)
• HITEC Power Protection
• KOHLER Power
• Legrand
• Mitsubishi Electric
• Narada
• Piller Power Systems
• Rolls-Royce
• Shenzhen Envicool Technology
• Siemens
• Socomec
• Trane

Prominent Data Center Investors

• Alibaba Group
• AirTrunk
• Amazon Web Services
• China Unicom
• China Mobile
• Chindata Group
• Digital Realty
• Equinix
• GDS Services
• Keppel Data Centres
• Microsoft
• NTT Global Data Centers
• NEXTDC
• ST Telemedia Global Data Centres

Other Prominent Data Center Investors

• AdaniConneX
• BDX
• CDC Data Centres
• Chayora
• Colt Data Centre Services
• CtrlS Datacenters
• Digital Edge DC
• Edge Centres
• EdgeConneX
• Meta
• Google
• Haoyun Changsheng
• Huawei Technologies
• Iron Mountain
• LG Uplus
• MettaDC
• Nxtra by Airtel
• OneAsia Network
• Open DC
• Princeton Digital Group
• Pure Data Centres Group
• SpaceDC
• Shanghai Atrium (AtHub)
• STACK Infrastructure
• SUNeVison Holdings
• Sify Technologies
• Tencent
• Tenglong Holding Group
• Vantage Data Centers
• Viettel IDC
• VNET
• Yotta Infrastructure Solutions
• YTL Data Center

New Entrants

• Digital Halo
• Empyrion DC
• Evolution Data Centres
• GreenSquareDC
• Gaw Capital
• Infracrowd Capital
• K2 Data Centres
• Minoro Energi Indonesia
• Nautilus Data Technologies
• SC Zeus Data Centers
• Regal Orion
• YCO Cloud
• Yondr

KEY QUESTIONS ANSWERED

1. How big is the APAC data center market?
2. What is the growth rate of the APAC data center market?
3. What are the key trends in the APAC data center industry?
4. What is the estimated market size in terms of area in the APAC data center market by 2029?
5. How many MW of power capacity is expected to reach the APAC data center market by 2029?