Asia-Pacific Data Center Colocation Market Outlook Report 2023-2028 Featuring Key DC Investors - AirTrunk Operating, Digital Realty, Equinix, GDS Services, Keppel, NTT, NEXTDC, & ST Telemedia

DUBLIN, Nov. 8, 2023 /PRNewswire/ -- The "Asia-Pacific Data Center Colocation Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The APAC data center colocation market is expected to reach a value of $19.08 billion by 2028 from $12.01 billion in 2022, growing at a CAGR of 8.02% from 2022-2028

The APAC data center colocation market stands out as one of the fastest-growing markets globally. This growth is primarily attributed to various key factors, including robust government backing for data center expansion, the proliferation of industrial zones, the rapid development of submarine cable networks, substantial investments from cloud service providers, the entry of global colocation giants into the region through strategic joint ventures (JVs), and more.

China takes the lead in driving data center development within the region. Meanwhile, countries such as India, Australia, Japan, Singapore, and Hong Kong also feature prominently as major hubs for data center growth in the APAC region.

Emerging markets like South Korea, Taiwan, Indonesia, and Malaysia are experiencing a surge in demand, driven by the digitization wave and the increasing need for enhanced connectivity. Furthermore, the Philippines, New Zealand, and Vietnam are attracting fresh investments from data center operators, positioning themselves as preferred destinations for data center establishment in the foreseeable future.

The rollout of 5G services and the rising demand for connectivity in new areas and Tier I and II cities are drawing substantial investments from edge data center operators. For instance, companies like Leading-Edge Data Centres and Edge Centres are actively channeling investments into the establishment of multiple edge data centers across countries such as Indonesia, Australia, Malaysia, the Philippines, Thailand, India, Vietnam, and others.

Sustainability is a growing area of interest for both governments and data center operators across APAC. Governments in the region are proactively promoting the adoption of renewable energy sources. For instance, Taiwan has set ambitious targets, aiming to generate 20% of its electricity from renewable sources by 2025, primarily through wind and solar PV initiatives. Taiwan's renewable energy capacity is expected to exceed 26 GW within the next five years.

Data center operators are also actively participating in sustainability efforts, whether through the utilization of renewable energy sources, the establishment of power purchase agreements (PPAs), or the commitment to achieving carbon-free operations. An illustrative example is NTT Global Data Centers, which, in June 2022, entered into a substantial 70 MW solar energy PPA with Clean Energy Connect. This energy company has ambitious plans to develop solar power plants across 700 locations in the country by 2023.

MARKET TRENDS

Increased Digitalization

Digitalization is a major agenda of governments across all countries, such as 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 the digital economy of Australia by 2030.

Rise in M&As & JVs

The significant growth potential and revenue-generating opportunities in the APAC data center construction market prompt operators to continuously invest in M&As and engage in JVs for data center projects. Several global organizations enter the industry through JVs. For instance, STACK Infrastructure entered the South Korean industry through a JV 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 entered the APAC data center colocation market for the development of colocation facilities. Hyperscale data center operators also increase their market presence with investments in cloud regions. In 2022, 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.

There is a market demand for air- and water-based cooling solutions in terms of cooling infrastructure. Operators, especially in Southeast Asia, are more inclined toward adopting water-based cooling solutions due to the tropical climate. The APAC data center colocation 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.

Key Questions Answered

• How big is the APAC data center colocation market?
• What is the growth rate of the APAC data center colocation market?
• What is the estimated market size in terms of area in the APAC data center colocation market by 2028?
• What are the key trends in the APAC data center colocation market?
• How many MW of power capacity is expected to reach the APAC data center colocation market by 2028?

Premium Insights

• Key Market Highlights
• Key Market Trends
• Increased Digitalization
• Rise in M&As & JVs
• Segmentation Analysis
• Geographical Analysis
• Vendor Analysis

Market Opportunities & Trends

• Government Policy Support for Data Center Developments
• Ai at the Heart of Data Center Growth
• 5G Helps Edge Data Centers to Grow
• 6G to Take Edge Computing to the Next Level
• Regional Drive to Move Toward Renewable Energy

Market Growth Enablers

• Adoption of Cloud-Based Services to Drive the Data Center Market
• M&A & JV Pathway to Grow
• Increase in Submarine Connectivity
• Increase in Internet Connectivity and Digital Economy

Market Restraints

• Location Constraints on Data Center Development
• Rise in Power and Network Outages
• Security Challenges in Data Center

VENDOR ANALYSIS

Data Center Investors

• AirTrunk Operating
• Digital Realty
• Equinix
• GDS Services
• Keppel Data Centers
• NTT Global Data Centers
• NEXTDC
• ST Telemedia Global Data Centers

Other Prominent Data Center Investors

• Bridge Data Centres
• Big Data Exchange (BDx)
• CDC Data Centres
• Chayora
• Chindata Group
• Colt Data Centre Services
• CtrlS Datacenters
• Digital Edge DC
• Iron Mountain
• LG Uplus
• Nxtra by Airtel
• OneAsia Network
• Open DC
• Pi Datacenters
• Princeton Digital Group
• Regal Orion
• SpaceDC
• 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 Group
• Vantage Data Centers
• YCO Cloud
• YTL Data Center
• Yondr

Segmentation by Colocation Service

• Retail Colocation
• Wholesale Colocation

Segmentation by Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

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 & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

Segmentation by Cooling Technique

• Air-based Cooling Technique
• Liquid-based Cooling Technique

Segmentation by General Construction

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

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

For more information about this report visit https://www.researchandmarkets.com/r/1w2fou

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