APAC Data Center Colocation Market - Industry Outlook & Forecast 2023-2028
The APAC data center colocation market is expected to grow at a CAGR of 8.02% from 2022-2028.
KEY HIGHLIGHTS
The APAC data center colocation market is among the top markets globally in terms of growth, led by governments’ support for data center development, expansion of multiple industrial zones, the rapid development of submarine cable connectivity, investments by cloud service providers, entry of global colocation operators in the region for joint ventures (JVs), and other factors.
The deployment of 5G services and the growth in the demand for connectivity in new locations and Tier I and II cities attract investments from edge operators. For instance, edge operators, such as Leading-Edge Data Centres and Edge Centres, actively invest in establishing multiple edge data centers across Indonesia, Australia, Malaysia, the Philippines, Thailand, India, Vietnam, Thailand, and others.
There is a growth in interest by governments and data center operators in renewable energy. Governments across all APAC countries take initiatives to promote the adoption of renewable energy sources. For instance, Taiwan aims to generate 20% of its electricity through renewable energy by 2025, utilizing wind and solar PV promotion plans. Taiwan’s renewable power capacity will reach over 26 GW within five years.
Operators also participate in governments’ efforts for sustainable energy adoption by using renewable energy, signing power purchase agreements (PPAs), or setting targets for carbon-free operations. For instance, in June 2022, NTT Global Data Centers signed a new solar energy PPA of 70 MW with Clean Energy Connect. The energy company will 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.
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
GEOGRAPHICAL ANALYSIS
China dominates the regional industry in terms of data center development. India, Australia, Japan, Singapore, and Hong Kong are among the other major markets with high data center development activities in APAC.
South Korea, Taiwan, Indonesia, and Malaysia are emerging markets that witness significant growth due to digitalization and growth in connectivity. The Philippines, New Zealand, and Vietnam witness new investments from operators and are expected to be preferable destinations for data center development during the forecast period.
Segmentation by Geography
APAC
China
Hong Kong
Australia
New Zealand
India
Japan
Taiwan
South Korea
Rest of APAC
Southeast Asia
Singapore
Malaysia
Thailand
Indonesia
Philippines
Vietnam
Other Southeast Asian Countries
VENDOR ANALYSIS
The APAC data center colocation market grew significantly over the last five years with investments from several local and global operators.
Investors in APAC adopt various sustainable designs to ensure that the facility operates at a PUE of less than 1.4, which was not achievable by the operational data center built before 2017. The sustainable data center design practices followed in recent times are complimented by innovative air-based cooling solutions, efficient power technologies, and sustainable construction practices.
The development of hyperscale data center campuses in APAC will bring in a significant revenue opportunity for vendors that offer the fastest-growing technologies, such as liquid immersion cooling, direct-to-chip cooling, lithium-ion UPS, HVO generators, microgrid technologies, renewable power solutions, and net-zero water data centers.
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
KEY QUESTIONS ANSWERED:
1. How big is the APAC data center colocation market?
2. What is the growth rate of the APAC data center colocation market?
3. What is the estimated market size in terms of area in the APAC data center colocation market by 2028?
4. What are the key trends in the APAC data center colocation market?
5. How many MW of power capacity is expected to reach the APAC data center colocation market by 2028?
1. REPORT COVERAGE
1.1. WHAT’S INCLUDED
1.2. MARKET SEGMENTS
1.2.1. Market Segmentation by Colocation Service Type
1.2.2. Market Segmentation by Infrastructure
1.2.3. Market Segmentation by Electrical Infrastructure
1.2.4. Market Segmentation by Mechanical Infrastructure
1.2.5. Market Segmentation by Cooling Systems
1.2.6. Market Segmentation by Cooling Technique
1.2.7. Market Segmentation by General Construction
1.2.8. Market Segmentation by Tier Standards
2. MARKET AT A GLANCE
3. PREMIUM INSIGHTS
3.1. KEY MARKET HIGHLIGHTS
3.2. KEY MARKET TRENDS
3.2.1. Increased Digitalization
3.2.2. Rise in M&As & JVs
3.3. SEGMENTATION ANALYSIS
3.4. GEOGRAPHICAL ANALYSIS
3.5. VENDOR ANALYSIS
4. INTRODUCTION
4.1. APAC COLOCATION MARKET OVERVIEW
4.1.1. Internet Penetration
5. MARKET OPPORTUNITIES & TRENDS
5.1. GOVERNMENT POLICY SUPPORT FOR DATA CENTER DEVELOPMENTS
5.2. AI AT THE HEART OF DATA CENTER GROWTH
5.3. 5G HELPS EDGE DATA CENTERS TO GROW
5.3.1. 6G to Take Edge Computing to the Next Level
5.4. REGIONAL DRIVE TO MOVE TOWARD RENEWABLE ENERGY
6. MARKET GROWTH ENABLERS
6.1. ADOPTION OF CLOUD-BASED SERVICES TO DRIVE THE DATA CENTER MARKET
6.2. M&A & JV PATHWAY TO GROW
6.3. INCREASE IN SUBMARINE CONNECTIVITY
6.4. INCREASE IN INTERNET CONNECTIVITY AND DIGITAL ECONOMY
7. MARKET RESTRAINTS
7.1. LOCATION CONSTRAINTS ON DATA CENTER DEVELOPMENT
7.2. RISE IN POWER AND NETWORK OUTAGES
7.3. SECURITY CHALLENGES IN DATA CENTER
8. MARKET LANDSCAPE
8.1. MARKET OVERVIEW
8.2. INVESTMENT: MARKET SIZE & FORECAST
8.3. AREA: MARKET SIZE & FORECAST
8.4. POWER CAPACITY: MARKET SIZE & FORECAST
8.5. COLOCATION REVENUE: MARKET SIZE & FORECAST
9. COLOCATION SERVICE
9.1. MARKET OVERVIEW
9.2. RETAIL COLOCATION
9.2.1. Market Overview
9.2.2. Revenue: Market Size & Forecast
9.3. WHOLESALE COLOCATION
9.3.1. Market Overview
9.3.2. Revenue: Market Size & Forecast
10. INFRASTRUCTURE
10.1. MARKET SNAPSHOT
10.1.1. Cumulative Investment Opportunity by Infrastructure:
10.2. ELECTRICAL INFRASTRUCTURE
10.2.1. Market Overview
10.2.2. Investment: Market Size & Forecast
10.3. MECHANICAL INFRASTRUCTURE
10.3.1. Market Overview
10.3.2. Investment: Market Size & Forecast
10.4. GENERAL CONSTRUCTION
10.4.1. Market Overview
10.4.2. Investment: Market Size & Forecast
11. ELECTRICAL INFRASTRUCTURE
11.1. MARKET SNAPSHOT
11.2. UPS SYSTEMS
11.2.1. Market Overview
11.2.2. Investment: Market Size & Forecast
11.3. GENERATORS
11.3.1. Market Overview
11.3.2. Investment: Market Size & Forecast
11.4. TRANSFER SWITCHES & SWITCHGEAR
11.4.1. Market Overview
11.4.2. Investment: Market Size & Forecast
11.5. Power Ditribution Units (PDU’s)
11.5.1. Market Overview
11.5.2. Investment: Market Size & Forecast
11.6. OTHER ELECTRICAL INFRASTRUCTURE
11.6.1. Market Overview
11.6.2. Investment: Market Size & Forecast
12. MECHANICAL INFRASTRUCTURE
12.1. MARKET SNAPSHOT
12.2. COOLING SYSTEMS
12.2.1. Market Overview
12.2.2. Investment: Market Size & Forecast
12.3. RACKS
12.3.1. Market Overview
12.3.2. Investment: Market Size & Forecast
12.4. OTHER MECHANICAL INFRASTRUCTURE
12.4.1. Market Overview
12.4.2. Investment: Market Size & Forecast
13. COOLING SYSTEMS
13.1. MARKET SNAPSHOT
13.2. CRAC & CRAH UNITS
13.2.1. Market Overview
13.2.2. Investment: Market Size & Forecast
13.3. CHILLER UNITS
13.3.1. Market Overview
13.3.2. Investment: Market Size & Forecast
13.4. COOLING TOWERS, CONDENSERS & DRY COOLERS
13.4.1. Market Overview
13.4.2. Investment: Market Size & Forecast
13.5. ECONOMIZERS & EVAPORATIVE COOLERS
13.5.1. Market Overview
13.5.2. Market Size & Forecast
13.6. OTHER COOLING UNITS
13.6.1. Market Overview
13.6.2. Market Size & Forecast
14. COOLING TECHNIQUE
14.1. MARKET SNAPSHOT & GROWTH ENGINE
14.2. AIR-BASED COOLING TECHNIQUE
14.2.1. Market Overview
14.2.2. Investment: Market Size & Forecast
14.3. LIQUID-BASED COOLING TECHNIQUE
14.3.1. Market Overview
14.3.2. Investment: Market Size & Forecast
15. GENERAL CONSTRUCTION
15.1. MARKET SNAPSHOT & GROWTH ENGINE
15.1.1. Market Overview
15.1.2. Investment: Market Size & Forecast
15.2. INSTALLATION & COMMISSIONING SERVICES
15.2.1. Market Overview
15.2.2. Investment: Market Size & Forecast
15.3. ENGINEERING & BUILDING DESIGN
15.3.1. Market Overview
15.3.2. Market Size & Forecast
15.4. FIRE DETECTION & SUPPRESSION
15.4.1. Market Overview
15.4.2. Investment: Market Size & Forecast
15.5. PHYSICAL SECURITY
15.5.1. Market Overview
15.5.2. Market Size & Forecast
15.6. DCIM/BMS SOLUTIONS
15.6.1. Market Overview
15.6.2. Market Size & Forecast
16. TIER STANDARDS
16.1. MARKET SNAPSHOT
16.2. TIER I & II
16.2.1. Market Overview
16.2.2. Investment: Market Size & Forecast
16.3. TIER III
16.3.1. Market Overview
16.3.2. Investment: Market Size & Forecast
16.4. TIER IV
16.4.1. Market Overview
16.4.2. Investment: Market Size & Forecast
17. GEOGRAPHY
17.1. CHINA
17.1.1. Market Overview
17.1.2. Investment: Market Size & Forecast
17.1.3. Area: Market Size & Forecast
17.1.4. Power Capacity: Market Size & Forecast
17.1.5. Support Infrastructure: Market Size & Forecast