Market Size of asia-pacific data center Industry
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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.
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 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 | |
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| Massive | |
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| Tier Type | |
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| Country | |
| Australia | |
| China | |
| India | |
| Indonesia | |
| Japan | |
| Malaysia | |
| Rest of APAC |
Asia-Pacific Data Center Market Size Summary
The Asia-Pacific data center market is experiencing significant growth, driven by the increasing demand for digital infrastructure and connectivity solutions. The market is characterized by a diverse range of data center types, with Tier 3 facilities holding a substantial share due to their high redundancy and robust power and cooling systems. The growth of edge and cloud connectivity is further propelling the expansion of Tier 3 data centers. In Australia, initiatives like the Smart City Strategy are leveraging Big Data, IoT, and cloud connectivity to enhance urban living, while in Malaysia, cloud computing has been pivotal in advancing the digital landscape. The region's data center market is also witnessing a shift towards Tier 4 facilities, which offer superior fault tolerance and redundancy, particularly in developed countries. This trend is evident in countries like Thailand, where the only Tier 4 facility, Supernap Thailand, is operational.
China and Australia are at the forefront of the Asia-Pacific data center market, with China boasting the world's largest optical fiber network and significant 5G infrastructure. The demand for over-the-top services and online streaming is driving data consumption, with local providers like Tencent Video and Bilibili gaining prominence. In Australia, the transition from copper to fiber networks is underway, supported by government initiatives like the National Broadband Network project. The region's mobile broadband coverage is extensive, with a high penetration of smartphone users and a growing adoption of 5G networks. The market is fragmented, with major players such as Digital Realty Trust, Equinix, KT Corporation, NTT Ltd., and STT GDC Pte Ltd. actively expanding their presence through strategic investments and partnerships. These developments underscore the dynamic nature of the Asia-Pacific data center market, poised for continued growth and innovation.
Asia-Pacific Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Data Center Size
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1.1.1 Large
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1.1.2 Massive
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1.1.3 Medium
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1.1.4 Mega
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1.1.5 Small
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1.2 Tier Type
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1.2.1 Tier 1 and 2
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1.2.2 Tier 3
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1.2.3 Tier 4
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1.3 Absorption
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1.3.1 Non-Utilized
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1.3.2 Utilized
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1.3.2.1 By Colocation Type
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1.3.2.1.1 Hyperscale
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1.3.2.1.2 Retail
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1.3.2.1.3 Wholesale
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1.3.2.2 By End User
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1.3.2.2.1 BFSI
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1.3.2.2.2 Cloud
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1.3.2.2.3 E-Commerce
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1.3.2.2.4 Government
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1.3.2.2.5 Manufacturing
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1.3.2.2.6 Media & Entertainment
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1.3.2.2.7 Telecom
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1.3.2.2.8 Other End User
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1.4 Country
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1.4.1 Australia
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1.4.2 China
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1.4.3 India
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1.4.4 Indonesia
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1.4.5 Japan
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1.4.6 Malaysia
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1.4.7 Rest of APAC
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Asia-Pacific Data Center Market Size FAQs
What is the current Asia-Pacific Data Center Market size?
The Asia-Pacific Data Center Market is projected to register a CAGR of 10.21% during the forecast period (2024-2029).
Who are the key players in Asia-Pacific Data Center Market?
Digital Realty Trust, Inc., Equinix, Inc., KT Corporation, NTT Ltd. and STT GDC Pte Ltd are the major companies operating in the Asia-Pacific Data Center Market.
