Asia-Pacific Data Center Market Size

According to Renub Research Recent Analysis Asia-Pacific Data Center Market was valued at US$ 26.95 billion in 2024 and is projected to grow at a CAGR of 12.70%, reaching US$ 79.05 billion by 2033. Growth is driven by rapid digital transformation, cloud adoption, rising data consumption, hyperscale data center investments, 5G rollouts, and AI-based infrastructure.

Market Overview

A data center is a facility that houses computing and networking hardware to store, process, and distribute large volumes of data. It is the backbone of cloud computing, business applications, and digital services.

In the Asia-Pacific region, data center adoption is rising due to digital transformation, cloud services, and increased data usage. Countries like China, India, Japan, and Singapore are seeing substantial investments in data center infrastructure. Drivers include 5G networks, AI applications, e-commerce growth, data sovereignty requirements, and sustainability initiatives. The adoption of green and energy-efficient data centers is further supporting market expansion.

Growth Drivers

Increase in Cloud Computing Adoption

·        Cloud computing drives demand for data storage and processing.

·        Providers like AWS, Microsoft Azure, and Google Cloud are expanding into new regions.

·        Hybrid and multi-cloud adoption further fuels infrastructure demand.

·        October 2024: ~90% of Asia-Pacific businesses have workloads in more than one public cloud, with 85% in India using hybrid cloud setups.

Growth of E-Commerce and Digital Services

·        Online shopping, digital payments, and OTT streaming require robust data centers.

·        Southeast Asia’s 600+ million population drives digital consumption.

·        By 2027, 88% of the population (~402 million) is expected to participate in e-commerce.

Government Initiatives and Infrastructure Development

·        Governments promote cloud adoption, cybersecurity, and smart city projects.

·        Singapore, Japan, and Australia incentivize foreign investments and green data centers.

·        January 2025: Japan encourages data centers and semiconductor plants to locate near low-carbon energy clusters.

Challenges

Environmental Issues and Energy Consumption

·        Data centers consume high energy, causing environmental concerns.

·        Sustainability drives energy-efficient power and cooling solutions.

Regulatory and Compliance Challenges

·        Data privacy laws vary across countries.

·        Cross-border operations require compliance with data sovereignty and cybersecurity regulations, increasing costs.

Market Segments

By Data Center Size

·        Large: Serves enterprises, cloud providers, hyperscale needs. China and India see rising investments.

·        Massive: Supports high-performance computing, AI, and enterprise workloads. Requires advanced power and cooling systems.

·        Utilized: Optimizes existing infrastructure with AI monitoring, automation, and green solutions.

·        Retail: Offers colocation for SMEs and startups.

·        Hyperscale: Provides scalable infrastructure for cloud service providers.

By End User

·        BFSI: Secure, high-performance centers for digital banking and fintech.

·        E-Commerce: Manages customer data, transactions, and supply chains.

·        Cloud: Supports enterprises adopting cloud solutions.

·        Government, Manufacturing, Media & Entertainment, Telecom, Others

Country Markets

China

·        Leader in Asia-Pacific data center market.

·        Investments driven by cloud infrastructure, AI, e-commerce, and digital initiatives.

·        June 2024: Eastern Data, Western Computing initiative, with $63 billion annual investment in eight data center clusters.

India

·        Rapid digitalization, fintech growth, 5G rollout, and smart city plans drive demand.

·        Current capacity: 977 MW in top seven cities.

·        Under-construction: 1.03 GW by 2028, with additional planned growth to reach 3.29 GW by 2028.

Japan

·        Advanced technology infrastructure and focus on cybersecurity.

·        Smart cities, AI, and IoT adoption drive high-performance data centers.

·        May 2023: METI subsidy scheme for data centers in Hokkaido and Kyushu, leveraging renewable energy sources.

Other Countries

·        Australia, Hong Kong, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam are contributing to market growth.

Key Industry Trends

·        Smartphone users and mobile data traffic

·        Broadband and fiber connectivity

·        Regulatory frameworks supporting data sovereignty

·        Cloud adoption and green data center initiatives

Value Chain & Distribution Channel Analysis

Data Center Size: Large, Massive, Medium, Mega, Small
Tier Type: Tier 1 & 2, Tier 3, Tier 4
Absorption: Non-Utilized, Utilized, Hyperscale, Retail, Wholesale
End User: BFSI, Cloud, E-Commerce, Government, Manufacturing, Media & Entertainment, Telecom, Other
Countries Covered: Australia, China, India, Indonesia, Japan, Malaysia, Rest of APAC

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Company Analysis

·        Digital Realty Trust, Inc.

·        Equinix, Inc.

·        KT Corporation

·        NTT Ltd.

·        Princeton Digital Group

·        Space DC Pte Ltd.

·        NEXTDC Ltd

·        Canberra Data Centre

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