
Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2026–2031
CHICAGO, June 17, 2026 /PRNewswire/ -- The APAC data center market is on track to reach USD 255.49 billion in investment value by 2031, up from USD 126.64 billion in 2025, according to a new report from Arizton Advisory & Intelligence. The market is forecast to grow at a compound annual growth rate (CAGR) of 12.41% between 2026 and 2031, as enterprises across the region accelerate digital transformation, expand cloud adoption, and scale infrastructure to support AI workloads.
APAC Data Center Market Snapshot
Market Size – |
USD 255.49 Billion |
Market Size – |
USD 126.64 Billion |
CAGR - |
12.41 % |
Market Size - |
32.57 million square feet |
Power |
8,343 MW |
Historic Year |
2022-2024 |
Base Year |
2025 |
Forecast Year |
2026-2031 |
Segments |
Facility Type, Infrastructure, IT Infrastructure, |
Major Investment Highlights Across the APAC Data Center Market
- China remained the leading investment market, accounting for approximately 47.92% of regional data center investments in 2025, supported by hyperscale activity and continued digital infrastructure development.
- India and Australia continued to strengthen their position as major investment destinations.
- Japan represented approximately 10.08% of APAC data center investments in 2025, supported by increasing AI deployment and government-backed technology initiatives.
- Land availability constraints in major hubs such as Singapore, Tokyo, and Sydney are encouraging operators to evaluate secondary markets, including Malaysia, Thailand, Indonesia, the Philippines, Taiwan, and New Zealand for future developments.
- Higher-density AI workloads are increasing infrastructure requirements across APAC facilities, strengthening interest in liquid cooling, higher rack densities, and resilient power environments.
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Policy Support Is Reinforcing Data Center Expansion Across APAC
Government initiatives are increasingly influencing the pace and location of data center investments across APAC. As countries compete to strengthen their digital economies and attract technology investments, policy support is extending beyond traditional incentives to include AI infrastructure programs, digital sovereignty strategies, and long-term infrastructure development plans. This is creating a more favorable investment environment across several APAC markets, particularly those seeking to establish themselves as regional digital hubs. As a result, government-backed initiatives are becoming an important factor in shaping future capacity additions, alongside power availability, connectivity, and demand from cloud and AI workloads.
The APAC Data Center Colocation Market Set for Sustained Growth
The APAC data center colocation market is entering a major expansion cycle witness with data center investments expected is expected to reach USD 64.08 billion by 2031, growing at a CAGR of 15.36% billion between 2026 and 2031. While China continues to anchor the region's colocation growth, the next wave of momentum is increasingly shifting toward Malaysia, India, and Australia, driven by hyperscale expansion, AI workloads, and rising enterprise cloud demand. Meanwhile, Southeast Asia is set to contribute over 21% of APAC's growth, reinforcing the region's emergence as a key colocation investment hotspot. In terms of power capacity, China remains dominant, though markets such as India, Malaysia, Japan, and Indonesia are rapidly scaling infrastructure to meet rising digital demand.
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Liquid Cooling Gains Momentum as AI Rack Densities Rise
The growing demand for AI and High-Performance Computing (HPC) workloads is increasing the adoption of liquid cooling technologies across APAC data centers. As rack power densities continue to rise, operators are investing in cooling systems that can better manage heat in high-density environments while improving energy efficiency. Liquid cooling accounted for around 55.2% of cooling infrastructure investments in 2025 and is expected to reach nearly 59.0% by 2031, reflecting a gradual shift in cooling preferences across the region. The trend highlights a stronger focus on thermal efficiency and lower power and water consumption as APAC data centers continue to scale.
Report Scope
The combined research addresses:
- The current and projected size of the APAC data center and colocation markets through 2031
- Growth opportunities across the region's data center ecosystem
- Countries attracting the highest levels of data center and colocation investment
- Key trends shaping data center and colocation infrastructure across APAC
- The influence of AI on power, cooling, and capacity requirements
- Projected market size by white-floor area and power capacity through 2031
- Emerging APAC markets expected to see the strongest data center growth
About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
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Source: Arizton Advisory & Intelligence
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SOURCE Arizton Advisory & Intelligence
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