Asia-Pacific Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 14.27 Thousand MW |
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Market Volume (2029) | 23.2 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 10.21 % |
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Largest Share by Country | Australia |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Data Center Market Analysis
The Asia-Pacific Data Center Market size is estimated at 14.27 thousand MW in 2024, and is expected to reach 23.2 thousand MW by 2029, growing at a CAGR of 10.21%. Further, the market is expected to generate colocation revenue of USD 27,921.7 Million in 2024 and is projected to reach USD 50,310.9 Million by 2029, growing at a CAGR of 12.50% during the forecast period (2024-2029).
USD 27,921.68 Million
Market Size in 2024
USD 50,758.3 Million
Market Size in 2029
20.7%
CAGR (2017-2023)
12.5%
CAGR (2024-2029)
IT Load Capacity
14,264 MW
Value, IT Load Capacity, 2024
Social networking apps are the most used in Asian countries, resulting in increasing data consumption. In Malaysia, more than 92% of the active on social media users are there in 2024.
Total Raised Floor Space
Sq. Ft. 53.94 M
Volume, Raised Floor Space, 2024
The total raised floor area in the region is expected to increase to 84.8 million sq. ft by 2029. Hyperscale's continue to invest in APAC countries and see large, untapped growth in digitization by the private sector and the government.
Installed Racks
2,694,795
Volume, Installed Racks, 2024
China is expected to house the maximum number of racks by 2029. The growing demand for OTT services and streaming content online on high display formats are increasing significant data consumption.
# of DC Operators & DC Facilities
247 and 1,037
Volume, DC Facilities, 2024
There are 1037 colocation facilities in Asia-Pacific. Indonesia is the fastest-growing country in the market. The increasing adoption of the cloud by most businesses is one of the factors boosting the number of DC facilities in the nation.
Leading Market Player
5.9%
Market Share, AirTrunk Operating Pty Ltd, 2023
AirTrunk Operating Pty Ltd holds the highest share of 5.9% in the data center market. The company currently operates at an IT load capacity of 700 MW and its facilities are spreaded across Australia, Hong Kong, Singapore, and Japan.
Tier 3 data center accounted for majority share in terms of volume in 2023, Tier 4 is fastest growing segment
- The tier 3 type has a majority of share in the APAC region due to its major advantage. These tiers have high redundancy with multiple paths for power and cooling. Edge and cloud connectivity are expected to increase tier 3 growth.
- In Australia, the Smart City Strategy developed by Newcastle Council focuses on how Big Data, the Internet of Things, and cloud connectivity can help create more livable and innovative cities. In the endemic phase of COVID-19, cloud computing was widely acknowledged as the foundation of Malaysia's digital journey. Primary providers such as Alibaba Cloud have enabled small businesses to trade as effectively as large enterprises. This has allowed such businesses to take full advantage of the services.
- The APAC tier 3 type operated at an IT load capacity of 6705.97 MW in 2022. The capacity during the forecast period (2023-2029) is expected to grow from 8522.04 MW in 2023 to 13981.5 MW in 2029, registering a CAGR of 8.60%.
- The tier 4 type is expected to have a majority in growth rate of CAGR of 20.40%. Developed countries adopt Tier-4 certification to achieve fault tolerance and redundancy. Tier 4 zones are adopted even in developing regions for this reason. For instance, Supernap Thailand is the only tier 4 facility in the country.
- The Tier 1 & 2 segment shows the least growth, as more than 70% of all traffic moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are less forgiving about latency.
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China, Australia, and India holds the majority market share in 2023, India is fastest growing country
- China and Australia are the major leading countries in the Asia-Pacific region for the data center market. China has the world's largest optical fiber network, 4G and 5G independent networking networks. At present, 916,000 base stations have been built in 5G, accounting for more than 365 million of the world's 70% to 80% of 5G connections. The growing demand for OTT services and streaming content online on high display formats are increasing significant data consumption. China does not have Netflix but has local OTT providers, such as Yuoku, Tencent Video, Mango TV, and Bilibili. The online streaming industry was worth around USD 34 billion in 2021, which is expected to increase with the growing number of users.
- In Australia, currently, about 10-12% of data is created and processed outside a centralized data center or cloud, but the number is expected to cross 65-70% by 2025, a global trend that is also reflected in Australia. The COVID-19 crisis highlighted that Australia has a great need for digital infrastructure to improve connectivity. Fiber lines are expected to remain the dominant fixed broadband technology through 2025, supported by the rising demand for high-speed Internet services and the government's focus on aggressive fiber to the x (FTTx) network expansions nationwide under the National Broadband Network (NBN) project. In terms of investment, in August 2022, the Australian operator Telstra selected new transport network infrastructure rollout partners and Mad Max-like machinery capable of laying dual fiber cables simultaneously as the operator accelerates its efforts to build out high-capacity data transport networks across a country renowned for its distinctive environmental challenges.
Asia-Pacific Data Center Market Trends
Expansion in 5G and rising partnerships among tech companies and universities 5G ICT skills in the region, drives data centers market
- Cloud-based applications accessed through smartphones are one of the major growing market trends with smartphone users. Mobile broadband networks cover 96% of Asia-Pacific, with 1.2 billion people accessing mobile internet services. In 2021, smartphone adoption reached 74%. It is expected to rise to 84% by 2025. Mobile subscriber penetration is expected to reach 62% in 2025.
- There are 8.9 million mobile apps, and China spends 40%. As of December 2021, China owned 442 apps that achieved a combined penetration rate of 94.6% among mobile internet users. The growing adoption of the 5G network among the population has complemented 5G-enabled device sales. 5G availability, primarily in Southeast Asia, is variable. Countries like Singapore and Indonesia have already seen 5G deployed for some time and continue to innovate use cases for the public and organizations.
- By 2022, 5G coverage was expected to reach over 85% of Thailand's population. With new partnerships and development, 5G adoption in smartphones is increasing. For instance, in July 2022, Ericsson and the King Mongkut University of Technology Thonburi (KMUTT) announced that they partnered to support Thai students to build 5G ICT skills for the future. A wireless alternative to wireline broadband connectivity for homes and businesses is one of the major early 5G use cases, particularly in regions with unserved or underserved broadband markets.
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Growth in Fiber-to-the-home/building (FTTH/B) service in various countries in APAC drives the demand for data centers in the region
- An average broadband internet connection has a minimum download speed of 25 Mbps and a minimum upload speed of 3 Mbps. Fiber-to-the-home/building (FTTH/B) service is set to cement its position as Asia-Pacific's leading fixed broadband technology. Singapore is anticipated to have the highest share of FTTH/B lines as a percentage of total fixed broadband lines in the region, with more than 98% by 2026. Singapore will be followed by Vietnam, Hong Kong, and Malaysia.
- According to the Malaysian Minister of Communications and Multimedia, copper networks will be phased out by 2023. The government looks to increase broadband coverage in populated areas by at least five-fold, and they look at about 98% broadband coverage in populated areas with a speed of at least 30 Mbps.
- The Australian operator Telstra selected new infrastructure rollout partners and Mad Max-like machinery to lay dual fiber cables simultaneously in August 2022. The operator intends to accelerate its efforts to build out high-capacity data transport networks across a country renowned for its distinct environmental challenges to meet increasing demands for data connectivity. Fiber connectivity is driven by the decommissioning of copper networks in Asia-Pacific. Copper is expensive to maintain and difficult to operate. Some estimates suggest that compared to fiber networks, legacy copper network maintenance OpEx is 2-7 times greater, energy costs are 3-6 times higher, and network fault rates are 5-10 times greater.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing web data traffic in developing countries such as Thailand and others, would boost data center facilities in the region.
- Fiber optic cable companies such as Advanced Info Service Public Company Limited and others focuses on expansion of fiber connectivity in the region
- SoftBank, Celcom, DiGi and other mobile operators work towards 5G expansion in the region, would boost data centers facilities in coming years
Asia-Pacific Data Center Industry Overview
The Asia-Pacific Data Center Market is fragmented, with the top five companies occupying 15.58%. The major players in this market are Digital Realty Trust, Inc., Equinix, Inc., KT Corporation, NTT Ltd. and STT GDC Pte Ltd (sorted alphabetically).
Asia-Pacific Data Center Market Leaders
Digital Realty Trust, Inc.
Equinix, Inc.
KT Corporation
NTT Ltd.
STT GDC Pte Ltd
Other important companies include AirTrunk Operating Pty Ltd, Canberra Data Centers, Chindata Group Holdings Ltd., Keppel DC REIT Management Pte. Ltd., NEXTDC Ltd, Princeton Digital Group, Space DC Pte Ltd..
*Disclaimer: Major Players sorted in alphabetical order.
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Asia-Pacific Data Center Market News
- December 2022: HGC Global Communications has established an agreement with Digital Realty to boost customers’ edge connectivity. Under the agreement, Digital Realty will use edgeX by HGC services for over-the-top (OTT) customers in its three Singapore data centres.
- November 2022: Equinix announced its 15th international business exchange (IBX) data centre in Tokyo, Japan. The company said that it has made an initial investment of USD 115 million on the new data centre, touted TY15. The first phase of TY15 will provide an initial capacity of approximately 1,200 cabinets, and 3,700 cabinets when fully built out.
- September 2022: NTT Ltd announced the commencement of the construction of its sixth data centre in Cyberjaya. NTT plans to initially invest over USD 50 million in the sixth data centre, which is also known as Cyberjaya 6 (CBJ6). Further, CBJ6 and CBJ5 will have a total facility load of 22MW, spanning a combined 200,000 sq ft.
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We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
Asia-Pacific Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Australia
- 5.6.2 China
- 5.6.3 Hong Kong
- 5.6.4 India
- 5.6.5 Indonesia
- 5.6.6 Japan
- 5.6.7 Malaysia
- 5.6.8 New Zealand
- 5.6.9 Philippines
- 5.6.10 Singapore
- 5.6.11 South Korea
- 5.6.12 Taiwan
- 5.6.13 Thailand
- 5.6.14 Vietnam
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Data Center Size
- 6.1.1 Large
- 6.1.2 Massive
- 6.1.3 Medium
- 6.1.4 Mega
- 6.1.5 Small
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6.2 Tier Type
- 6.2.1 Tier 1 and 2
- 6.2.2 Tier 3
- 6.2.3 Tier 4
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6.3 Absorption
- 6.3.1 Non-Utilized
- 6.3.2 Utilized
- 6.3.2.1 By Colocation Type
- 6.3.2.1.1 Hyperscale
- 6.3.2.1.2 Retail
- 6.3.2.1.3 Wholesale
- 6.3.2.2 By End User
- 6.3.2.2.1 BFSI
- 6.3.2.2.2 Cloud
- 6.3.2.2.3 E-Commerce
- 6.3.2.2.4 Government
- 6.3.2.2.5 Manufacturing
- 6.3.2.2.6 Media & Entertainment
- 6.3.2.2.7 Telecom
- 6.3.2.2.8 Other End User
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6.4 Country
- 6.4.1 Australia
- 6.4.2 China
- 6.4.3 India
- 6.4.4 Indonesia
- 6.4.5 Japan
- 6.4.6 Malaysia
- 6.4.7 Rest of APAC
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 AirTrunk Operating Pty Ltd
- 7.3.2 Canberra Data Centers
- 7.3.3 Chindata Group Holdings Ltd.
- 7.3.4 Digital Realty Trust, Inc.
- 7.3.5 Equinix, Inc.
- 7.3.6 Keppel DC REIT Management Pte. Ltd.
- 7.3.7 KT Corporation
- 7.3.8 NEXTDC Ltd
- 7.3.9 NTT Ltd.
- 7.3.10 Princeton Digital Group
- 7.3.11 Space DC Pte Ltd.
- 7.3.12 STT GDC Pte Ltd
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, APAC, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), APAC, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, APAC, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, APAC, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, APAC, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, APAC, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, APAC, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, APAC, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, APAC, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, APAC, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, APAC, 2017 - 2029
- Figure 12:
- VOLUME OF DATA CENTER SIZE, MW, APAC, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF DATA CENTER SIZE, %, APAC, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LARGE, MW, APAC, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LARGE, MW, DATA CENTER SIZE, %, APAC, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF MASSIVE, MW, APAC, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF MASSIVE, MW, DATA CENTER SIZE, %, APAC, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF MEDIUM, MW, APAC, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF MEDIUM, MW, DATA CENTER SIZE, %, APAC, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF MEGA, MW, APAC, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF MEGA, MW, DATA CENTER SIZE, %, APAC, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF SMALL, MW, APAC, 2017 - 2029
- Figure 23:
- VOLUME SHARE OF SMALL, MW, DATA CENTER SIZE, %, APAC, 2017 - 2029
- Figure 24:
- VOLUME OF TIER TYPE, MW, APAC, 2017 - 2029
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, APAC, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, APAC, 2017 - 2029
- Figure 27:
- VOLUME SHARE OF TIER 1 AND 2, MW, TIER TYPE, %, APAC, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, APAC, 2017 - 2029
- Figure 29:
- VOLUME SHARE OF TIER 3, MW, TIER TYPE, %, APAC, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 4, MW, APAC, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF TIER 4, MW, TIER TYPE, %, APAC, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, APAC, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, APAC, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, APAC, 2017 - 2029
- Figure 35:
- VOLUME SHARE OF NON-UTILIZED, MW, ABSORPTION, %, APAC, 2017 - 2029
- Figure 36:
- VOLUME OF COLOCATION TYPE, MW, APAC, 2017 - 2029
- Figure 37:
- VOLUME SHARE OF COLOCATION TYPE, %, APAC, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF HYPERSCALE, MW, APAC, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF HYPERSCALE, MW, COLOCATION TYPE, %, APAC, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF RETAIL, MW, APAC, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF RETAIL, MW, COLOCATION TYPE, %, APAC, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF WHOLESALE, MW, APAC, 2017 - 2029
- Figure 43:
- VOLUME SHARE OF WHOLESALE, MW, COLOCATION TYPE, %, APAC, 2017 - 2029
- Figure 44:
- VOLUME OF END USER, MW, APAC, 2017 - 2029
- Figure 45:
- VOLUME SHARE OF END USER, %, APAC, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF BFSI, MW, APAC, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF CLOUD, MW, APAC, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF E-COMMERCE, MW, APAC, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF GOVERNMENT, MW, APAC, 2017 - 2029
- Figure 50:
- VOLUME SIZE OF MANUFACTURING, MW, APAC, 2017 - 2029
- Figure 51:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, APAC, 2017 - 2029
- Figure 52:
- VOLUME SIZE OF TELECOM, MW, APAC, 2017 - 2029
- Figure 53:
- VOLUME SIZE OF OTHER END USER, MW, APAC, 2017 - 2029
- Figure 54:
- VOLUME OF COUNTRY, MW, APAC, 2017 - 2029
- Figure 55:
- VOLUME SHARE OF COUNTRY, %, APAC, 2017 - 2029
- Figure 56:
- VOLUME SIZE OF AUSTRALIA, MW, AUSTRALIA, 2017 - 2029
- Figure 57:
- VOLUME SIZE OF CHINA, MW, CHINA, 2017 - 2029
- Figure 58:
- VOLUME SIZE OF INDIA, MW, INDIA, 2017 - 2029
- Figure 59:
- VOLUME SIZE OF INDONESIA, MW, INDONESIA, 2017 - 2029
- Figure 60:
- VOLUME SIZE OF JAPAN, MW, JAPAN, 2017 - 2029
- Figure 61:
- VOLUME SIZE OF MALAYSIA, MW, MALAYSIA, 2017 - 2029
- Figure 62:
- VOLUME SIZE OF REST OF APAC, MW, REST OF APAC, 2017 - 2029
- Figure 63:
- VOLUME SHARE OF MAJOR PLAYERS, %, APAC, 2022
Asia-Pacific Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Australia, China, India, Indonesia, Japan, Malaysia are covered as segments by Country.
- The tier 3 type has a majority of share in the APAC region due to its major advantage. These tiers have high redundancy with multiple paths for power and cooling. Edge and cloud connectivity are expected to increase tier 3 growth.
- In Australia, the Smart City Strategy developed by Newcastle Council focuses on how Big Data, the Internet of Things, and cloud connectivity can help create more livable and innovative cities. In the endemic phase of COVID-19, cloud computing was widely acknowledged as the foundation of Malaysia's digital journey. Primary providers such as Alibaba Cloud have enabled small businesses to trade as effectively as large enterprises. This has allowed such businesses to take full advantage of the services.
- The APAC tier 3 type operated at an IT load capacity of 6705.97 MW in 2022. The capacity during the forecast period (2023-2029) is expected to grow from 8522.04 MW in 2023 to 13981.5 MW in 2029, registering a CAGR of 8.60%.
- The tier 4 type is expected to have a majority in growth rate of CAGR of 20.40%. Developed countries adopt Tier-4 certification to achieve fault tolerance and redundancy. Tier 4 zones are adopted even in developing regions for this reason. For instance, Supernap Thailand is the only tier 4 facility in the country.
- The Tier 1 & 2 segment shows the least growth, as more than 70% of all traffic moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are less forgiving about latency.
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User | |||
| Country | Australia | ||
| China | |||
| India | |||
| Indonesia | |||
| Japan | |||
| Malaysia | |||
| Rest of APAC |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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