Asia Pacific Data Center Market Size

The Asia Pacific Data Center Market is projected to experience substantial growth, reaching an estimated US$ 71.67 Billion by 2032. This marks a significant increase from US$ 24.66 Billion in 2023, reflecting a compound annual growth rate (CAGR) of 12.59% anticipated between 2024 and 2032.

Market Outlooks

Data centers are vital for processing, storing, and managing large volumes of digital information and data in a secure environment. Organizations can conveniently store and manage their IT infrastructure in a data center, including servers, storage systems, networking gear, and other hardware and software components. These facilities are extensive and intricate, equipped with redundant cooling and power systems to ensure continuous operation, even during power outages or other disruptions. Advanced security protocols are also in place to protect against physical and virtual threats. Many modern businesses and organizations rely on data centers, especially those heavily dependent on digital data and applications.

Driving forces for Asia Pacific Data Center

Increased digitalization: The Asia Pacific region is witnessing a surge in digital technologies, driven by factors such as e-commerce, mobile applications, social media platforms, and IoT devices. This digitalization has led to a significant impact on companies reliant on digital data and applications. China has prioritized the digital economy in its national development policy and is focusing on areas such as blockchain, integrated circuits, and 6G technology. Meanwhile, the Indian government has launched the Digital India initiative to foster the country's future growth and education. These initiatives highlight the increasing importance of digital technologies in shaping the economic and social landscape of the Asia Pacific region.

The expansion of 5G network connectivity is driving the deployment of edge data centers: Many countries in the Asia Pacific region, such as China, Australia, Japan, Singapore, and South Korea, have widely embraced 5G technology. The demand for greater processing power and improved communication standards in data centers is pushing the expansion of 5G in various areas. Key operators like China Mobile Hong Kong Ltd., Hong Kong Ltd., SmarTone Mobile Communications Ltd., and Hutchison Telephone Company Ltd. are leading the way in Hong Kong. Additionally, in New Zealand, the government has struck a unique deal with the three leading network providers - Spark, 2Degrees, and One New Zealand - aiming to extend mobile wireless coverage to remote locations currently lacking sufficient service and speed up the introduction of 5G services in about 55 rural and regional towns nationwide. More data centers are being constructed closer to the end users and their devices to meet this demand, particularly in urban areas, focusing on 5G development.

Rise in the adoption of artificial intelligence: The APAC region's industrial, retail, healthcare, and finance sectors are increasingly leveraging AI to enhance customer experiences, drive operational efficiency, and improve decision-making. This adoption generates massive amounts of data, emphasizing the urgent need for effective data management, processing, and storage solutions. Consequently, there is a growing demand for advanced data center hardware, including GPU-accelerated servers and specialized AI chips capable of handling AI workloads. Predictions indicate a sharp rise in demand for data center services in Asia Pacific as businesses embrace AI to innovate and gain a competitive advantage. As a result, significant investments in AI-ready data center infrastructure and technology are anticipated.

India Data Center Market

The Indian government is working on initiatives such as Made in India and Digital India to help the market grow. These actions aim to improve the country's digital infrastructure, provide digital services, and attract investments from different sectors. The government is also encouraging the construction of data center parks and offering financial incentives to data center operators, driving the need for data centers in India.

The demand for data centers is increasing as more businesses and industries adopt digital technologies. Additionally, the growing use of cell phones and internet access generates much data. According to the Telecom Regulatory Authority of India (TRAI), the number of internet users in India reached 865.90 million by the end of December 2022, up from 850.95 million at the end of September 2022. This represents a 1.76% increase on a quarter-over-quarter basis. In 2022, there will be 865.90 million internet users worldwide, with 833.49 million using wireless and 32.41 million using wired internet.

Asia Pacific Data Center Company Analysis

Asia Pacific's top data center companies are Digital Realty Trust, Inc., Equinix, Inc., KT Corporation, NTT Ltd., Princeton Digital Group, Space DC Pte Ltd., NEXTDC Ltd, and Canberra Data Centre.

Asia Pacific Data Center Company News

• In April 2024, CTRLS Datacenters Ltd. plans to build a new 130,000-square-foot, 13MW data center in Gachibowli, Hyderabad, to meet the growing demand and strengthen its position in the Indian data center market.

• In November 2023, Adani Enterprises aims to pour $1.5 billion into its data center business over the next three years, intending to establish nine centers with a total capacity of one gigawatt by 2030.

• In November 2022, STT Telemedia signed a Memorandum of Understanding with the Indian government to expand its operations by constructing new data center facilities in Karnataka over the next decade.

• Also in November 2022, Equinix opened its fifteenth International Business Exchange (IBX) data center, TY15, in Tokyo, Japan. The company has already invested USD 115 million in the new center, and the first phase will accommodate approximately 1,200 cabinets, with a total capacity of 3,700 cabinets upon completion.

Data Center Size– Market breakup in 5 viewpoints:

1. Large
2. Massive
3. Medium
4. Mega
5. Small

Absorption– Market breakup in 2 viewpoints:

1. Non-Utilized
2. Utilized

2.1. Hyperscale

2.2. Retail

2.3. Wholesale

End User- Market breakup in 8 viewpoints:

1. BFSI
2. Cloud
3. E-Commerce
4. Government
5. Manufacturing
6. Media & Entertainment
7. Telecom
8. Other End User

Country – Market breakup of 7 Countries:

1. Australia
2. China
3. India
4. Indonesia
5. Japan
6. Malaysia
7. Rest of APAC

All the key players have been covered from 3 Viewpoints:

• Business Overview
• Recent Development & Strategies
• Revenue Analysis

Key Players Analysis:

• Digital Realty Trust, Inc.
• Equinix, Inc.
• KT Corporation
• NTT Ltd.
• Princeton Digital Group
• Space DC Pte Ltd.
• NEXTDC Ltd
• Canberra Data Centre