APAC Data Center Colocation Market Report 2024-2029 - Increase In Submarine Connectivity And Adoption Of Cloud-Based Services To Drive Data Center Market

Governments and data center operators are becoming increasingly interested in renewable energy. Governments across all APAC countries are taking initiatives to promote the adoption of renewable energy sources. For instance, Taiwan aims to generate 20% of its electricity through renewable energy by 2025 using wind and solar PV promotion plans. Taiwan's renewable power capacity will reach over 26 GW within the next five years.

Data center operators also participate in governments' efforts to adopt sustainable energy by using renewable energy, signing Power Purchase Agreements (PPAs), or setting targets for carbon-free operations. For instance, in March 2024, NTT DATA signed a new solar energy PPA of around 40 MW with TEPCO.

KEY TRENDS

Increased Digitalization

• Digitalization is a major agenda of governments in all countries, including 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 Australia's digital economy by 2030.

Rise in Mergers and Acquisitions & Joint Ventures

• The significant growth potential and revenue-generating opportunities in the APAC data center market prompt operators to continuously invest in mergers and acquisitions and engage in project joint ventures. Several global organizations enter the industry through joint ventures. For instance, STACK Infrastructure entered the South Korean industry through a joint venture 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 enter the market for the development of colocation data centers. Hyperscale data center operators also increase their market presence with investments in cloud regions. In 2023, 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.
• The APAC data center colocation market demands air- and water-based cooling solutions in terms of cooling infrastructure. Data center operators, especially in Southeast Asia, are more inclined toward adopting water-based cooling solutions due to the tropical climate. The 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.

The report includes the investment in the following areas:

Segmentation by Colocation Services

• Retail Colocation
• Wholesale Colocation

Segmentation by Infrastructure

• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• 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 Techniques

• Air-based Cooling
• Liquid-based Cooling

Segmentation by General Construction

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

Segmentation by Tier Standards

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

• China dominates the regional market in terms of data center development. India, Australia, Japan, Singapore, and Hong Kong are among the other major markets with high development activities in the APAC data center colocation industry.
• China, India, South Korea, and Indonesia are experiencing substantial growth in the adoption of AI. In addition, Indonesia, Malaysia, and the Philippines are attracting fresh investments from data center operators, making them anticipated choices for data center development in the upcoming forecast period.
• In Southeast Asia, Malaysia and Indonesia stand out as significant market investors. Nevertheless, the projected increase in project announcements is driving anticipation of a gradual investment acceleration over the next two to three years.

VENDOR LANDSCAPE

• The APAC data center colocation market grew significantly over the last five years with investments from several local and global data center operators. In 2023, APAC dominated the market in terms of total investments.
• 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 recent sustainable data center design practices complement 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.
• The APAC data center colocation market witnessed a significant increase in new entrants in the last few years, owing to the market's strong growth potential. The increase in new entrants will increase the competition for existing data center operators, expanding their presence across countries.
• The APAC data center colocation market will bring multi-million-dollar revenue opportunities for construction contractors and sub-contractors operating in the market. It will also attract new companies willing to offer construction services.

Prominent Data Center Investors

• AirTrunk
• Big Data Exchange
• CDC Data Centres
• Chayora
• Chindata Group
• Colt Data Centre Services
• CtrlS Datacenters
• Digital Edge DC
• Digital Realty
• Equinix
• GDS Services
• Iron Mountain
• Keppel Data Centres
• LG Uplus
• NEXTDC
• NTT DATA
• Nxtra by Airtel
• OneAsia Network
• Open DC
• Pi DATACENTERS
• Princeton Digital Group
• Regal Orion
• SpaceDC
• ST Telemedia Global Data Centres
• 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
• Vantage Data Centers
• YCO Cloud
• YTL Data Center
• Yondr

KEY QUESTIONS ANSWERED:

• How big is the APAC data center colocation market?
• What is the growth rate of the APAC data center colocation market?
• What are the key trends in the Asia-Pacific data center colocation industry?
• What is the estimated market size in terms of area in the APAC data center colocation market by 2029?

Key Attributes:

Key Topics Covered:
1. Report Coverage
1.1. What's Included
1.2. Segmental Coverage
2. Market at a Glance
3. Premium Insights
3.1. Key Markets Highlights
3.2. Key Markets Trends
3.2.1. Increased Digitalization
3.2.2. Rise in Mergers and Acquisitions & Joint Ventures
3.3. Segmentation Analysis
3.4. Geographical Analysis
3.5. Vendor Analysis
4. Introduction
4.1. Internet Penetration
4.2. Digital APAC
4.3. Network Readiness Index
5. Market Opportunities & Trends
5.1. AI Influences Data Center Growth
5.2. 5G Helps Edge Data Centers Grow
5.3. Growth in Adoption of Renewable Energy
6. Market Growth Enablers
6.1. Adoption of Cloud-based Services to Drive Data Center Market
6.2. Mergers and Acquisitions & Joint Ventures in Region
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 Services Market
9.1. Market Snapshot
9.2. Market Overview
9.3. Retail Colocation
9.4. Wholesale Colocation
10. Support Infrastructure
10.1. Market Snapshot
10.2. Key Highlights
10.3. Market Overview
10.4. Electrical Infrastructure
10.5. Mechanical Infrastructure
10.6. General Construction
11. Electrical Infrastructure
11.1. Market Snapshot
11.2. Key Highlights
11.3. Market Overview
11.4. Ups Systems
11.5. Generators
11.6. Transfer Switches & Switchgear
11.7. PDUs
11.8. Other Electrical Infrastructure
12. Mechanical Infrastructure
12.1. Market Snapshot
12.2. Key Highlights
12.3. Market Overview
12.4. Cooling Systems
12.5. Racks
12.6. Other Mechanical Infrastructure
13. Cooling Systems
13.1. Market Snapshot
13.2. Key Highlights
13.3. Market Overview
13.4. CRAC & CRAH Units
13.5. Chiller Units
13.6. Cooling Towers, Condensers, and Dry Coolers
13.7. Economizers & Evaporative Coolers
13.8. Other Cooling Units
14. Cooling Techniques
14.1. Market Snapshot
14.2. Key Highlights
14.3. Market Overview
14.4. Air-based Cooling Technique
14.5. Liquid-based Cooling Technique
15. General Construction
15.1. Market Snapshot
15.2. Key Highlights
15.3. Market Overview
15.4. Core & Shell Development
15.5. Installation and Commissioning Services
15.6. Engineering & Building Design
15.7. Fire Detection & Suppression
15.8. Physical Security
15.9. DCIM/BMS
16. Tier Standards
16.1. Market Snapshot
16.2. Key Highlights
16.3. Market Overview
16.4. Tier I & II
16.5. Tier III
16.6. Tier IV
17. Geography
18. Competitive Landscape
18.1. Market Share by Colocation Investment
18.2. Market Share by Colocation Area
18.3. Market Share by Colocation Power
18.4. Market Share by Colocation Revenue
19. Prominent Data Center Investors
20. New Entrants
21. Quantitative Summary
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• APAC Data Center Colocation Market

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