APAC Green Data Center Market Size (2024 - 2029)

The Asia Pacific Green Data Center Market is experiencing significant growth, driven by the increasing energy demands of data centers in the region. This surge in demand is exacerbated by the rising need for sustainable practices, as data centers contribute substantially to energy consumption. The market's expansion is challenged by escalating power and utility costs, which have been rising due to heightened consumption and the lack of effective energy management strategies. Despite these challenges, the market is witnessing a shift towards sustainability, with the adoption of advanced technologies like the Internet of Things and artificial intelligence, further fueled by the COVID-19 pandemic's impact on virtual activities.

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Market Size of APAC Green Data Center Industry

Asia Pacific Green Data Center Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 20.87 %
Market Concentration Medium

Major Players

Asia Pacific Green Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Green Data Center Market Analysis

The Asia Pacific Green Data Center Market is expected to register a CAGR of 20.87% during the forecast period. A local telecommunications company in Singapore says that data centers use 7% of the country's total energy. By 2030, this number is expected to rise to 12%.

  • Singapore also accounts for 60% of Southeast Asia's total data center supply. Over the life of a data center, the cost of power increases unpredictably, increasing operating expenses.This is an issue of serious environmental concern and a cause for firms worldwide to take steps toward sustainability.
  • Energy use in data centers throughout APAC is rising to match skyrocketing demand. The APAC region consumes a significant amount of the total energy used by data centers worldwide, and there is no sign of slowing demand. The lack of energy management methods coupled with the unprecedented rise in demand is the major concern for the data center power market in the APAC region.
  • This market is being hampered by rising power and utility prices.The rapid rise in power consumption has driven state providers to increase their prices by at least 10% over the last couple of years. The decreasing cost due to increased competition with the increasing number of new entrants into the market is also cutting into the profits of data center providers.
  • The use of the Internet of Things and artificial intelligence spurred by the COVID-19 situation increased the need for higher-density processors, which produced more heat and thus required more cooling power. Moreover, data center energy usage increased due to increased teleworking and other virtual activities brought on by the COVID-19 pandemic. Developments in the form of using sustainable technologies were, thus, on the rise.

APAC Green Data Center Industry Segmentation

The Asia Pacific Green Data Center Market report describes the market size, growth potential, opportunities, overview, research, and segmentation based on services, solutions, end-users, and geographies. Moreover, the report analyses the market based on applications segregated by various end-user industries like BFSI, Healthcare, Government, Energy and Power, and Information Technology. The market is segmented by By Services (System Integration, Monitoring Services, Professional Services), Solutions (Power, Servers, Management Software, Networking technologies, Cooling), Users (Colocation, Cloud services), End-user Industries (Healthcare, Financial Services, Government, Telecom and IT) and Geography (India, China, Japan, South Korea, and Rest of Asia Pacific).

The market sizes and forecasts are provided in terms of value (in USD million) for all the above segments.

By Services
System Integration
Monitoring Services
Professional Services
Other Services
By Solutions
Power
Servers
Management Software
Networking Technologies
Cooling
Other Solutions
By Users
Colocation Providers
Cloud Service Providers
Enterprises
By End-user Industries
Healthcare
Financial Services
Government
Telecom and IT
Other Industries
By Country
China
India
Japan
South Korea
Rest of Asia Pacific
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APAC Green Data Center Market Size Summary

The Asia Pacific Green Data Center Market is poised for significant growth, driven by the increasing demand for sustainable and energy-efficient data center solutions. As the region grapples with rising energy consumption and costs, driven by factors such as the proliferation of IoT and AI technologies, the need for innovative cooling and energy management solutions has become paramount. The market is characterized by a shift towards renewable energy sources and cleaner fuel alternatives, such as hydrogen, to mitigate environmental impact and reduce operational costs. Companies are investing in advanced technologies like immersion cooling to enhance efficiency and meet the growing demand for high-density processing capabilities. This transition is supported by strategic partnerships and government initiatives aimed at fostering regulatory certainty and promoting sustainable development in the data center sector.

Despite challenges such as limited land availability, tropical climate conditions, and fluctuating energy prices, the Asia Pacific Green Data Center Market is witnessing a surge in investment and innovation. Major players, including Fujitsu, Cisco, and Dell, are actively engaging in research and development to advance green technologies and infrastructure. Collaborative efforts, such as those between Centrin Data and Huawei Digital Power, are focused on integrating smart energy management and renewable energy solutions into data center operations. The market's moderate concentration is indicative of a competitive landscape where companies are striving to achieve long-term cost advantages and meet carbon reduction targets. As the demand for data, colocation, and interconnection services continues to rise, the adoption of sustainable practices in data center development is expected to play a crucial role in shaping the industry's future in the Asia Pacific region.

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APAC Green Data Center Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Threat of New Entrants

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Bargaining Power of Suppliers

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Market Drivers

    4. 1.4 Market Restraints

    5. 1.5 Opportunities in the Green Data Center Market

    6. 1.6 Industry Value Chain Analysis and COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Services

      1. 2.1.1 System Integration

      2. 2.1.2 Monitoring Services

      3. 2.1.3 Professional Services

      4. 2.1.4 Other Services

    2. 2.2 By Solutions

      1. 2.2.1 Power

      2. 2.2.2 Servers

      3. 2.2.3 Management Software

      4. 2.2.4 Networking Technologies

      5. 2.2.5 Cooling

      6. 2.2.6 Other Solutions

    3. 2.3 By Users

      1. 2.3.1 Colocation Providers

      2. 2.3.2 Cloud Service Providers

      3. 2.3.3 Enterprises

    4. 2.4 By End-user Industries

      1. 2.4.1 Healthcare

      2. 2.4.2 Financial Services

      3. 2.4.3 Government

      4. 2.4.4 Telecom and IT

      5. 2.4.5 Other Industries

    5. 2.5 By Country

      1. 2.5.1 China

      2. 2.5.2 India

      3. 2.5.3 Japan

      4. 2.5.4 South Korea

      5. 2.5.5 Rest of Asia Pacific

APAC Green Data Center Market Size FAQs

The APAC Green Data Center Market is projected to register a CAGR of 20.87% during the forecast period (2024-2029)

Fujitsu Limited, Cisco Systems, Inc., Hewlett-Packard Company, Dell and Hitachi Ltd. are the major companies operating in the APAC Green Data Center Market.

APAC Green Data Center Report Snapshots

Asia Pacific Green Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)