Asia-Pacific Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Gov

Asia-Pacific Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030

The Asia-Pacific Data Center Market size was valued at USD 31.89 billion in 2023, and is predicted to reach USD 77.29 billion by 2030, at a CAGR of 13.5% from 2024 to 2030.

Across a multitude of sectors, the Asia-Pacific region is currently undergoing a rapid digital transformation, catalyzing a surge in demand for data center services. As both businesses and governments eagerly embrace digital technologies to optimize efficiency, elevate service standards, and maintain competitiveness, the imperative for robust data infrastructure intensifies. This trend is notably conspicuous in countries such as China, Japan, India, and South Korea, where ambitious digital ventures and pioneering projects are fueling significant investments in data centers. The escalating adoption of cloud computing, Internet of Things (IoT), Artificial Intelligence (AI), and big data analytics further accentuates the need for advanced data processing and storage capabilities, thus propelling the market's expansion across the region.

However, the data center industry faces significant challenges, notably the high initial investment required and stringent environmental regulations. Establishing and maintaining data centers demands substantial upfront financial commitments, posing barriers for smaller businesses and startups. Moreover, ongoing compliance with environmental standards mandates continuous investments in energy-efficient technologies hinders the overall market growth.

On the other hand, the integration of edge computing into network infrastructure operations presents promising opportunities for the industry's future. By minimizing latency and enabling real-time processing, edge computing supports applications such as IoT and AR, thereby alleviating the burden on centralized cloud data centers while offering scalability and flexibility. This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, thereby creating diverse opportunities for data center providers. Recent investments in startups such as Armada underscore the growing interest in edge computing solutions, reflecting a concerted effort to address connectivity challenges and bridge the digital divide.

Segment Overview

The Asia-Pacific Data Center industry is segmented based on type, deployment model, enterprise size, and end users.
Based on type, the market is segmented into colocation, hyperscale, edge, and others.
Based on deployment model, the market is divided into on-premise, cloud, and hybrid.
Based on enterprise size, the market is bifurcated into large enterprise, small and medium size enterprise.
Based on the end users, the market is divided into BFSI, IT and telecom, government, energy and utilities, and other end users.

Regional Analysis

China Holds the Dominant Market Share in Asia-Pacific Data Center Market

China solidifies its position as a leader in the global network infrastructure arena, boasting an impressive tally of 440 operational facilities scattered across the country, as per data from CloudScene. This expansive network growth mirrors the remarkable surge of China's digital economy, that surged to encompass 41.5% of the GDP, reaching a substantial 7.25 trillion US dollars in 2022. This surge serves as a testament to China's unwavering commitment to modernization, a commitment prominently showcased at the 6th Digital China Summit. As the digital landscape continues to thrive, it is poised to exert a profound impact on China's data center industry, highlighting the nation's steadfast dedication to digital progression.

Key Market Players

Leading players operating in the Asia-Pacific data center industry include:
• Amazon.com Inc.
• IBM Corporation
• Microsoft Corporation
• Cisco System Inc.
• Oracle Corporation
• SAP SE
• Hewlett Packard Enterprise Company
• NTT Communications Corporation
• Equinix Inc.
• Digital Reality Trust Inc

KEY BENEFITS
• The Asia-Pacific data center market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the Asia-Pacific data center market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.