Asia Pacific Data Center Market Overview
Asia Pacific Data Center Market Size was valued at USD 27.8 Billion in 2022. The Data Center market industry is projected to grow from USD 31.24 Billion in 2023 to USD 79.60 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.40% during the forecast period (2024 - 2032). The growing demand for cloud services and digital transformation initiatives in different industries is one of the major market drivers driving the Data Center market in Asia Pacific.
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Market Trends
The Asia Pacific Data Center market CAGR is expanding due to the growing demand for cloud computing services and hyperscale data centers. As businesses in the APAC region increasingly embrace digital transformation initiatives, there is a rising need for scalable and resilient infrastructure to support cloud-based applications, data storage, and processing requirements. This trend is propelled by several factors, including the proliferation of mobile devices, the explosion of data generated by IoT (Internet of Things) devices, and the adoption of AI (Artificial Intelligence) and machine learning technologies. The APAC region is home to the world's fastest-growing economies, driving robust demand for cloud services and digital solutions. Organizations are leveraging cloud computing to enhance agility, scalability, and cost-efficiency, enabling them to innovate rapidly and respond to changing market dynamics. As a result, cloud service providers are expanding their presence in the APAC market, investing in hyperscale data centers equipped with state-of-the-art infrastructure to meet the escalating demand for cloud services.
Moreover, the ongoing digitalization of industries such as finance, healthcare, e-commerce, and manufacturing is fueling the need for high-performance computing and storage capabilities. Businesses are migrating mission-critical workloads and data to the cloud to capitalize on its flexibility and scalability, driving the adoption of hybrid and multi-cloud architectures. This trend is driving significant investments in data center infrastructure, including the deployment of edge computing facilities to support low-latency applications and IoT deployments. Furthermore, the COVID-19 pandemic has accelerated the shift towards remote work and digital collaboration, intensifying the demand for cloud-based productivity tools and communication platforms. This has led to a surge in data traffic, placing additional strain on existing data center infrastructure and driving the need for expansion and modernization. As a result, data center operators in the APAC region are investing in the construction of new facilities and the upgrading of existing ones to accommodate growing demand and ensure optimal performance and reliability. Thus driving the Data Center market revenue.
Data Center Market Segment Insights
The Asia Pacific Data Center market segmentation, based on end use, includes Retail, BFSI, IT & Telecom, Healthcare, Media & Entertainment and Others. The IT & Telecom segment dominated the market due to its extensive reliance on robust data infrastructure to support critical operations. As technology continues to develop and digital transformation initiatives accelerate, the demand for data storage, processing, and connectivity solutions within the IT & Telecom sector escalates rapidly. Moreover, the proliferation of cloud computing services, 5G network deployments, and IoT devices further amplifies the need for high-performance data center facilities to handle the exponential growth of data traffic. Consequently, data center operators prioritize catering to the specialized requirements of the IT & Telecom sector, driving significant investments in infrastructure expansion, reliability enhancements, and technological innovations tailored to meet their specific needs.
Data Center Type Insights
The Asia Pacific Data Center market segmentation, based on type, includes Corporate Data Centre and Web Hosting Data Centre. The corporate data center category dominates the market due to the significant presence of large enterprises and multinational corporations in the region. These entities require robust data center infrastructure to support their mission-critical applications, data storage, and processing needs. Corporate data centers are characterized by their scale, reliability, and security features, making them preferred choices for organizations with stringent uptime requirements and regulatory compliance mandates. Additionally, many corporations in the Asia-Pacific region opt for hybrid data center solutions, combining on-premises facilities with cloud services to achieve flexibility, scalability, and cost-efficiency in managing their IT infrastructure.
Figure 1: Asia Pacific Data Center Market, by Type, 2023 & 2032 (USD Billion)
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Country Insights
The Asia Pacific (APAC) data center market exhibits dynamic growth across countries, driven by diverse factors. China, as a major economic powerhouse, leads in data center investments fueled by rapid digitalization and government initiatives. India's market is propelled by a burgeoning population and increasing digital adoption, with significant investments from both domestic and international players. Singapore stands out for its strategic location, advanced infrastructure, and strong connectivity, serving as a regional hub for data center services. Australia and Japan boast mature data center markets driven by robust technological infrastructure and high demand from enterprise customers. Additionally, emerging markets like Indonesia and Vietnam are experiencing accelerated growth, fueled by expanding digital economies and investments in telecommunications infrastructure. Overall, the APAC region presents a dynamic and diverse landscape for data center investments and opportunities.
Figure 2: Asia Pacific Data Center MARKET SHARE BY REGION 2023 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Data Center Key Market Players & Competitive Insights
Leading market players are investing largely in research and development in order to expand their product lines, which will help the Data Center market grow even more. Market players are also undertaking different strategic activities to extend their footprint, with important market developments including mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To expand and sustain in a more competitive and rising market climate, the Data Center industry must offer cost-effective items.
Major players in the Data Center market are attempting to raise the market demand by investing in research and development operations, including SUNeVision Holdings Ltd., PCCW Limited, Towngas Telecommunications Company Limited., China Mobile Limited, AT&T Inc., Digital Realty Trust Inc., Equinix Inc., Microsoft, NTT Communications Corporation, and Google.
Key Companies in the Data Center market include
Data Center Industry Developments
June 2022: PCCW Limited and Lenovo Group Limited entered into an agreement to develop a strategic partnership to generate a technology solutions business in the Asia Pacific region. The partnership, PCCW Lenovo Technology Solutions Limited, will use the strengths of Lenovo and PCCW to generate compelling value for the company's employees, customers, and shareholders.
March 2022: SUNeVision acquired land assigned for a cable landing station in Hong Kong. The Lands Department declared that the tender for an area in Chung HomKok had been awarded to STT Limited on a 30-year land grant.
Data Center Market Segmentation:
Data Center End Use Outlook
Data Center Type Outlook
Data Center Regional Outlook
• Asia Pacific
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 27.8 Billion |
| Market Size 2023 | USD 31.24 Billion |
| Market Size 2032 | USD 79.60 Billion |
| Compound Annual Growth Rate (CAGR) | 12.40% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | End Use, Type, and Region |
| Region Covered | Asia Pacific |
| Countries Covered | China, Japan, India, Australia, South Korea, Indonesia, Thailand, Vietnam, Malaysia, Singapore, and the Rest of Asia-Pacific |
| Key Companies Profiled | SUNeVision Holdings Ltd., PCCW Limited, Towngas Telecommunications Company Limited., China Mobile Limited, AT&T Inc., Digital Realty Trust Inc., Equinix Inc., Microsoft, NTT Communications Corporation and Google |
| Key Market Opportunities | ·        Growing adoption of cloud and proliferation of Internet of Things devices applications across enterprises of all sizes. |
| Key Market Dynamics | ·        Rapid digital transformation across different industries. ·        The active promotion of digital infrastructure development. |
Frequently Asked Questions (FAQ) :
The Asia Pacific Data Center market size was valued at USD 31.24 Billion in 2023.
The market is projected to grow at a CAGR of 12.40% during the forecast period, 2024-2032.
The key players in the market are SUNeVision Holdings Ltd., PCCW Limited, Towngas Telecommunications Company Limited., China Mobile Limited, AT&T Inc., Digital Realty Trust Inc., Equinix Inc., Microsoft, NTT Communications Corporation and Google.
The IT & Telecom category dominated the market in 2023.
The corporate data center category had the largest share of the market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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