APAC Green Data Center Market - Industry Analysis & Forecast 2023-2028

APAC Green Data Center Market - Industry Analysis & Forecast 2023-2028

The APAC green data center market was valued at USD 7.01 billion in 2022 and is expected to grow at a CAGR of 11.20% from 2022-2028.

KEY HIGHLIGHTS

• Hyperscale operators in the APAC green data center market, such as Google, Microsoft, Amazon Web Services (AWS), Alibaba, and Huawei Technologies, drive the market with sustainable investments and innovative technologies.
• Operators, such as NextDC, Chayora, SpaceDC, ST Telemedia Global Data Centers, STACK Infrastructure, Digital Realty, and AirTrunk, focus on building data centers with a Power Usage Effectiveness (PUE) of
• Renewable energy providers continuously increase their portfolio of non-fossil fuel energy by investing in several new projects across the region. Solar and wind lead the market, followed by other sources, such as hydro and biomass.

KEY MARKET TRENDS

Innovations in Data Center Technologies

• Singapore's Infocomm Media Development Authority (IMDA) has established a new guideline to improve the energy efficiency of data centers in tropical settings. In June 2023, Singapore’s Infocomm Media Development Authority (IMDA) launched the Tropical Data Center sustainability standard.
• In January 2022, Beijing Highlander signed an agreement with Hainan Province’s Big Data Management for the commercial launch of an underwater data center in Sanya, near Hainan Island in China.
• In February 2022, China Offshore Oil Engineering Company (COOEC) and Chinese marine firm Offshore Oil Engineering Company announced that they began the construction of an underwater data center in China. The facility will be cooled using seawater.
• Keppel Data Centres partnered with Toll Group to develop a floating data center in Singapore based on modular data center designs that can be scaled based on demand. Keppel will likely consider deploying the floating data center solution of Nautilus Data Technologies.

Government Push Toward Sustainability

• Various APAC governments, including those of China, Australia, New Zealand, India, Indonesia, Malaysia, Singapore, Thailand, and others, actively work toward increasing the adoption of renewable energy.
• According to the State for Chemical and Fertilizers, New Renewable Energy in India aims to produce 450 MW of renewable energy by 2030. Four solar power plants will be set up in Karnataka, with a combined power capacity of around 1,200 MW.
• Thailand 4.0 aims to implement innovative energy initiatives for economic development. Under the policy, over $6 billion is invested by the state-owned enterprises on smart grids before 2036 to improve the grid’s resilience and efficiency, leading to less carbon emissions.

SEGMENTATION INSIGHTS

Innovations In Power Technologies

• In 2022, NTILION's scalebloc provided a cutting-edge lithium-ion battery solution, revolutionizing stationary energy storage for data centers. Its small, all-in-one design offers various applications, weather-resistant housing, and sophisticated system control for efficient and safe interior or outdoor installation.
• In October 2023, Equinix and the National University of Singapore are working on a research project to study the possibility of hydrogen fuel cells as an alternative power source for Singapore data centers.
• In 2022, Equinix partnered with ZutaCore, Virtual Power Systems (VPS), Bloom Energy, and Natron to test cutting-edge technologies under Equinix’s Data Center of the Future initiative. The technologies explored include generator-less and UPS-less data centers, among other technologies.

Innovations In Cooling Technologies

• Data centers installed underwater are gaining traction. In February 2022, China Offshore Oil Engineering Company (COOEC) and Chinese marine firm Offshore Oil Engineering Company announced that they began the construction of an underwater data center in China. The facility will be cooled using seawater.
• In China, Foxconn has constructed a "green tunnel-like data center" in Guiyang, southwestern China. According to Foxconn, the facility's design criteria are based on minimizing energy consumption, with an average PUE (power usage effectiveness) of less than 1.1.

The Rise in Renewable Energy PPAs by Data Center Operators

• In the APAC green data center market, Hyperscale operators have entered into power purchase agreements with renewable energy providers to supply power to their data centers.
• In 2023, Google has secured 20 additional renewable energy agreements, expanding the total number of agreements to over 80, with a combined capacity of 10 GW—a $10 billion visionary commitment in clean energy procurement by 2040.
• In 2023, Alibaba Cloud and Shell collaborated to provide innovative cooling solutions. The alliance will use Shell's low-carbon energy products and immersion cooling fluids in data centers to decarbonize Alibaba's infrastructure.
• Colocation operators in the APAC green data center market like Nxtra by Airtel, Digital Reality, Equinix, Princeton Digital Group (PDG), Vantage Data Centers, AdaniConneX, ST Telemedia Global Data Centers, and Keppel Data Centres are operating facilities using renewable energy, with many of them aiming to be carbon-neutral by 2030.

SEGMENTATION ANALYSIS

Segmentation By Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation By Electrical Infrastructure

• UPS Systems
• Generators
• 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 General Construction

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

REGIONAL ANALYSIS

• China, Australia, Japan, India, South Korea, Singapore, Malaysia, Indonesia, and others actively adopt renewable energy for most of their energy requirements in the APAC green data center market.
• In Singapore, government initiatives such as the Singapore Green Plan 2030 aim to multiply the solar energy deployments to 1.5 GWp in the country by 2025 and up to 2 GWp by 2030
• The government of India announced that the country will become carbon neutral by 2070 with net zero emissions. Moreover, by 2030, the government plans to have around 500 GW of installed renewable energy in India, including 140 GW of wind and 280 GW of solar power.
• Japan has set lofty goals for increasing the share of renewable energy in electricity generation. The country aims to generate around 90% of clean energy by 2035.

Segmentation By Geography

• APAC
• China & Hong Kong
• Australia & New Zealand
• Japan
• India
• South Korea
• Rest of APC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Other Southeast Asian Countries

VENDOR LANDSCAPE

Large Colocation and Hyperscale, Data Center Operators, Drive the Market

Prominent Data Center Investors

• AirTrunk
• Alibaba Group
• Amazon Web Services (AWS)
• AdaniConneX
• Apple
• Big Data Exchange (BDx)
• CDC Data Centers
• Chayora
• China Telecom
• China Mobile
• Chindata Group
• China Unicom
• Colt Data Centre Services
• CtrlS Data Centers
• Digital Edge DC
• Digital Realty
• Equinix
• Meta
• GDS Services
• Global Switch
• Google
• Huawei Technologies
• Iron Mountain
• Keppel Data Centres
• LG Uplus
• Lotte Data Communication
• Microsoft
• NEXTDC
• NTT Global Data Centers
• Nxtra by Airtel
• OneAsia Network
• Open DC
• Pi DATACENTERS
• Princeton Digital Group (PDG)
• Pure Data Centres
• RackBank
• Regal Orion
• Sify Technologies
• SpaceDC
• ST Telemedia Global Data Centres
• STACK Infrastructure
• SUNeVison Holdings
• Tenglong Holdings Group
• Vantage Data Centers
• VADS (Telekom Malaysia)
• Viettel IDC
• VNET
• Yondr
• Yotta Infrastructure
• YTL Data Center

Renewable Energy Providers

• ACCIONA Energia
• Adani Green Energy (AGEL)
• AGL Energy
• AMP Energy
• Avaada Energy
• China Yangtze Power (CYCP)
• Engie
• EDF Renewables
• GreenYellow
• GCL-Poly Energy Holdings
• JinkoSolar Holding
• Meridian Energy
• New Zealand Solar Power
• ReNew Power Ventures
• Sunseap Group
• SB Energy
• Shell
• Suzlon Energy
• Solargiga Energy Holdings
• TATA Power Solar Systems
• TotalEnergies
• The AES Corporation
• Trina Solar
• Vena Energy
• Woodside Energy
• Xinjiang Goldwind Science & Technology

KEY QUESTIONS ANSWERED:

1. How big is the APAC green data center market?

2. What is the growth rate of the APAC green data center market?

3. What are the key trends in the APAC green data center market?

4. Which country holds the largest APAC green data center market share?

5. How many MW of power capacity is expected to reach the APAC green data center market by 2028?