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Report Description

Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 14.57 Billion

Largest Market

China

CAGR (2023-2028)

14.63%

Fastest Growing Segment

Healthcare

Asia-Pacific data center market is anticipated to grow at a steady pace during the forecast period due to a rising number of key factors, including the region's growing digitalization, and investments in 5G plans, which are boosting deployments of edge data centers and increasing the uptake of artificial intelligence and big data and IoT. With increased technological development, the market is expanding in the forecast period. For instance, there are 501 colocation data centers from 18 countries in Asia at present.

A data center is a reserved space within a building block, or a group of rooms used to establish computer systems and associated components, such as telecommunications and storage devices. Throughout the forecast period, server farms have changed from being exclusive to stringently directed on-premises offices.

Market Drivers

Increasing Adoption of Cloud and Digital Transformation by Companies

Asia-Pacific is observing a steady rise in the use of smart technologies, such as IoT and big data in different industry sectors. For instance, numerous startup companies use big data analytics solutions in the agricultural industry. Utilizing big data analytics solutions in the healthcare sector, among other things, to store patient health detailed records and disease records. Nowadays Australia has a well-organized healthcare system and spends about the OECD average of 10% of GDP on healthcare. Since the healthcare sector is growing in Australia the overall demand for data centers to handle large-size data is growing rapidly. As a result of this rise in demand, the data center market in Asia-Pacific is likely to proliferate in the coming years.

In addition, Amazon Web Services (AWS), a major U.S. e-commerce company's cloud arm, recently 2023, announced a USD 5 billion investment in Indonesia over the next 15 years to accelerate cloud adoption and digital transformation, including the construction of additional data centers. Therefore, the Indonesian government and authorities have entirely supported the growth of data-intensive industries like edge computing and the Internet of Things (IoT), AI, robots, and 5G infrastructure. Most of the data generated by all these industries should pass through a data center. As cloud-managed services are an essential component of digital transformation, their requirement will continue to grow in the upcoming years, due to the trend toward remote working that many businesses are moving toward. Various regulations and reforms have provided the essential framework for this expansion as a result of the government's efforts to make Indonesia a global data hub, and more new businesses will enter the market in the coming years. As a result, the expansion of the Asia-Pacific Data Center Market is credited with the rapid adoption of cloud computing and digital transformation by businesses.

Rise in Renewable Energy & Infrastructure

One of the most valuable infrastructures that use a lot of energy is data centers. Due to their high energy consumption, establishing data centers may extant challenge for many companies. Even though the Asia-Pacific region is the exporter of fuel and one of the largest coal producers in the world, the government has been supporting renewable energy to reduce its reliance on fossil fuels and meet the energy demand.

In addition, renewable energy sources like geothermal, solar, wind, hydropower facilities, biomass, and others have a lot of potential in Asia-Pacific. Hydropower and solar power are the region’s primary uses of renewable natural resources now. For an illusion, Malaysia's Ministry of Energy and Natural Resources (KeTSA) plans to use renewable energy for 31% of the country's installed capacity by 2025. By 2035, this goal was to reduce GHG emissions from the power sector & reduce economy-wide carbon intensity. New union power & on-grid NRE capacity has been created through the Net Energy Metering 3.0 (NEM) scheme/plan, additionally, the Smart Automation Grants (SAG), the Green Investment Tax (Gita), the Large-Scale Solar program (LSS), and other government initiatives are gaining traction. The service provider has been able to install data centers for the expanding digital economy due to these initiatives under the Sustainable Energy Development Authority (SEDA) Malaysia and an increase in the establishment of facilities and the installation of renewable energy infrastructure. As a result, the Asia-Pacific data center market is benefiting from the expansion of renewable energy and infrastructure.

Surging Investment in Data Centers by Enterprises

The region is an emerging data center hub, with supportive pro-business policies attracting and retaining data center investors. The governments are committed to further accelerating digital adoption in the region. Cloud service providers like Google, Facebook, Alibaba, Tencent Cloud, AWS, Microsoft, and others will make significant investments in the Asia-Pacific data center market. Business and government organizations' demand for cloud shifts is expected to accelerate investment growth from cloud service providers. In addition, the region has a significant pool of knowledgeable and qualified workers, which promises well for its competitive advantage in attracting additional direct investments from outside, which are crucial to the data center market. To construct the largest hyper-scale campuses in the Asia-Pacific region, numerous domestic and international businesses are expanding their presence in the Asia-Pacific countries. For instance, in 2023 at an event Vantage Data Centers recently, announced the construction of new grounds in Cyberjaya, Malaysia. The company has signed a contract with Cyberview Sdn Bhd and plans to invest approximately USD 3 billion in the construction of a second campus for data centers in the city. In addition, a statement from RHB Investment Bank states that over the next 5 years, a total of 800 MW of brand-new and future investments in data centers are anticipated to begin operating in phases, resulting in lower costs for land and energy. As a result, the expansion of data centers in the Asia-Pacific market can be attributed to businesses' increasing investments in them.

Asia-Pacific Data Center Market

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Recent Developments

  • November 2022: Tokyo, Japan, has been finalized as the location for Equinix's 15th international business exchange (IBX) data center. The new data center, dubbed TY15, received an initial investment of USD 115 million from the company,  when it will be completed in 2023, it is anticipated that it will have around 3,700 cabinets.
  • November 2022: The BDx company announced the launch of BDx in Indonesia, a different conclusion of a USD 300 million joint venture agreement with PT Indosat Tbk (IOH) and PT Aplikanusa Lintasarta, Big Data Exchange.
  • September 2022: Leading Edge Data Centres, an Australian provider of edge data centers, opened a new location in Albury, New South Wales. Built to Tier III grade standards, the brand-new ABX1 facility has a capacity of 750 kW spread out over 580 square meters.
  • July 2022: SoftIron announced a partnership with Servers Australia, a private Australian hosting provider, to construct a scalable hybrid cloud infrastructure in Australia. To modify its business procedures, the Bank of Queensland declared in July 2022 that they are switching from its conventional data centers to the public cloud. Mambu, a SaaS cloud banking platform, was selected by the Commonwealth Bank of Australia for its digital mortgage services in June 2022.
  • February 2022: A private 5G network for the industrial technology company AgriFood, was launched by Telstra and Ericsson. In January 2022, Telstra announced the Ericsson private 5G network, an on-premises dedicated enterprise 5G network.
  • January 2022: Digital Realty & HGC Global Communications signed a contract under the agreement to enhance their customers' edge connectivity. Digital Realty in the future will use edgeX by HGC services in its three Singapore data centers for over-the-top (OTT) customers.
  • November 2021: AirTrunk company CEO announced that they are constructing a new data center structure in Sydney. The 320MW(megawatt) facility will be the largest hyperscale campus outside of China in Asia-Pacific. It will be completed in 9 phases, covering 8.3 hectares, and include a 132KV substation on the spot. It will be produced with a PUE of 1.15 to minimize carbon emissions. AirTrunk advertises SYD1 and SYD3 as part of its "Western Sydney Region," which will offer more than 450MW in total, they are expecting to complete this project by the end of the year (2023).

Market Segmentation

The Asia-Pacific data center market can be segmented by solution, Enterprise Size, end user, and country. Based on Solution, the market is segmented into IT Infrastructure, general infrastructure, electrical infrastructure, mechanical infrastructure, and others. Based on enterprise size, the market is segmented into large enterprises and small & medium enterprises (SMEs). Based on end user, the market is divided into Information technology & telecom, government, BFSI, healthcare, and others. Based on country, the market is segmented into China, Japan, India, South Korea, Australia, Vietnam, Indonesia, Singapore, Philippines, and Malaysia.

Market Players

Key players in the Asia-Pacific data center market are AirTrunk Operating Pty Ltd., Canberra Data Centers, Chindata Group Holdings Ltd., Digital Realty Trust, Inc., Equinix, Inc., Keppel DC REIT Management Pte. Ltd., KT Corporation, NEXTDC Ltd, NTT Ltd., and Princeton Digital Group.

Attribute

Details

Base Year

2022

Historic Data

2018 – 2022

Estimated Year

2023

Forecast Period

2023 – 2028

Quantitative Units

Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028

Report Coverage

Revenue forecast, company share, growth factors, and trends

Segments Covered

Solution

Enterprise Size

End User

Country

Country Scope

China, Japan, India, South Korea, Australia, Vietnam, Indonesia, Singapore, Philippines, Malaysia

Key Companies Profiled

AirTrunk Operating Pty Ltd., Canberra Data Centers, Chindata Group Holdings Ltd., Digital Realty Trust, Inc., Equinix, Inc., Keppel DC REIT Management Pte. Ltd., KT Corporation, NEXTDC Ltd, NTT Ltd., and Princeton Digital Group

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

 

Report Scope:

In this report, the Asia-Pacific data center market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

  • Asia-Pacific Data Center, By Solutions:
    • IT Infrastructure
    • General Infrastructure
    • Electrical Infrastructure
    • Mechanical Infrastructure
    • Others
  • Asia-Pacific Data Center, By Enterprise Size:
    • Large Enterprises
    • Small & Medium Enterprises (SMEs)
  • Asia-Pacific Data Center, By End User:
    • Information Technology & Telecom
    • Government
    • BFSI
    • Healthcare
    • Others
  • Asia-Pacific Data Center Market, By Country:
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Vietnam
    • Indonesia
    • Singapore
    • Philippines
    • Malaysia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Asia-Pacific data center market.

Available Customizations:

With the given market data on the Asia-Pacific data center market, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

The Asia-Pacific data center market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com

Table of content

Table of content

1.    Product Overview

2.    Research Methodology

2.1.  Baseline Methodology

2.2.  Key Industry Partners

2.3.  Major Association and Secondary Sources

2.4.  Forecasting Methodology

2.5.  Data Triangulation & Validation

2.6.  Assumptions and Limitations

3.    Executive Summary

4.    Voice of Customer

5.    Asia-Pacific Data Center Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, and Others)

5.2.2.    By Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs))

5.2.3.    By End-User (Information Technology & Telecom, Government, BFSI, Healthcare, and Others)

5.2.4.    By Country

5.3.  By Company (2022)

5.4.  Market Map

6.    China Data Center Market Outlook

6.1.  Market Size & Forecast

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Solution

6.2.2.    By Enterprise Size

6.2.3.    By End-User

7.    Japan Data Center Market Outlook

7.1.  Market Size & Forecast

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Solution

7.2.2.    By Enterprise Size

7.2.3.    By End-User

8.    India Data Center Market Outlook

8.1.  Market Size & Forecast

8.1.1.    By Value

8.2.  Market Share & Forecast

8.2.1.    By Solution

8.2.2.    By Enterprise Size

8.2.3.    By End-User

9.    South Korea Data Center Market Outlook

9.1.  Market Size & Forecast

9.1.1.    By Value

9.2.  Market Share & Forecast

9.2.1.    By Solution

9.2.2.    By Enterprise Size

9.2.3.    By End-User

10. Australia Data Center Market Outlook

10.1.             Market Size & Forecast

10.1.1. By Value

10.2.             Market Share & Forecast

10.2.1. By Solution

10.2.2. By Enterprise Size

10.2.3. By End-User

11. Vietnam Data Center Market Outlook

11.1.             Market Size & Forecast

11.1.1. By Value

11.2.             Market Share & Forecast

11.2.1. By Solution

11.2.2. By Enterprise Size

11.2.3. By End-User

12. Indonesia Data Center Market Outlook

12.1.             Market Size & Forecast

12.1.1. By Value

12.2.             Market Share & Forecast

12.2.1. By Solution

12.2.2. By Enterprise Size

12.2.3. By End-User

13. Singapore Data Center Market Outlook

13.1.             Market Size & Forecast

13.1.1. By Value

13.2.             Market Share & Forecast

13.2.1. By Type

13.2.2. By Rating

13.2.3. By Application

13.2.4. By Sector

13.2.5. By Region

14. Philippines Data Center Market Outlook

14.1.             Market Size & Forecast

14.1.1. By Value

14.2.             Market Share & Forecast

14.2.1. By Solution

14.2.2. By Enterprise Size

14.2.3. By End-User

15. Malaysia Data Center Market Outlook

15.1.             Market Size & Forecast

15.1.1. By Value

15.2.             Market Share & Forecast

15.2.1. By Solution

15.2.2. By Enterprise Size

15.2.3. By End-User

16. Market Dynamics

16.1. Drivers

16.2. Challenges

17. Market Trends & Developments

18. Policy & Regulatory Landscape

19. Company Profiles

19.1.   AirTrunk Operating Pty Ltd.

19.1.1. Business Overview

19.1.2. Key Revenue and Financials (If Available)

19.1.3. Recent Developments

19.1.4. Key Personnel

19.1.5. Key Product/Services

19.2.   Canberra Data Centers

19.2.1. Business Overview

19.2.2. Key Revenue and Financials (If Available)

19.2.3. Recent Developments

19.2.4. Key Personnel

19.2.5. Key Product/Services

19.3.   Chindata Group Holdings Ltd.

19.3.1. Business Overview

19.3.2. Key Revenue and Financials (If Available)

19.3.3. Recent Developments

19.3.4. Key Personnel

19.3.5. Key Product/Services

19.4.   Digital Realty Trust, Inc.

19.4.1. Business Overview

19.4.2. Key Revenue and Financials (If Available)

19.4.3. Recent Developments

19.4.4. Key Personnel

19.4.5. Key Product/Services

19.5.   Equinix, Inc.

19.5.1. Business Overview

19.5.2. Key Revenue and Financials (If Available)

19.5.3. Recent Developments

19.5.4. Key Personnel

19.5.5. Key Product/Services

19.6.   Keppel DC REIT Management Pte. Ltd.

19.6.1. Business Overview

19.6.2. Key Revenue and Financials (If Available)

19.6.3. Recent Developments

19.6.4. Key Personnel

19.6.5. Key Product/Services

19.7.   KT Corporation

19.7.1. Business Overview

19.7.2. Key Revenue and Financials (If Available)

19.7.3. Recent Developments

19.7.4. Key Personnel

19.7.5. Key Product/Services

19.8.   NEXTDC Ltd

19.8.1. Business Overview

19.8.2. Key Revenue and Financials (If Available)

19.8.3. Recent Developments

19.8.4. Key Personnel

19.8.5. Key Product/Services

19.9.   NTT Ltd.

19.9.1. Business Overview

19.9.2. Key Revenue and Financials (If Available)

19.9.3. Recent Developments

19.9.4. Key Personnel

19.9.5. Key Product/Services

19.10.Princeton Digital Group

19.10.1.              Business Overview

19.10.2.              Key Revenue and Financials (If Available)

19.10.3.              Recent Developments

19.10.4.              Key Personnel

19.10.5.              Key Product/Services

20. Strategic Recommendations

About Us & Disclaimer

Figures and Tables

Frequently asked questions

Frequently asked questions

Top players in the Asia-Pacific data center market are AirTrunk Operating Pty Ltd., Canberra Data Centers, Chindata Group Holdings Ltd., Digital Realty Trust, Inc., Equinix, Inc., Keppel DC REIT Management Pte. Ltd., KT Corporation, NEXTDC Ltd, NTT Ltd., are Princeton Digital Group.

The major factors driving the Asia-Pacific data center market are increased domestic investment, government laws for local data protection, colocation data centers, and hyper-scale investments.

The leading country market for data centers in Asia-Pacific is China. Its dominance can be attributed to the growing demand for OTT services and streaming content online on high-display formats, which is resulting in increased data consumption.

The main challenges faced by the Asia-Pacific data center market are power outages & security challenges and a lack of skilled workforce.

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