The APAC Data Center Colocation Market is experiencing significant growth, driven by factors such as submarine connectivity and cloud adoption. The market was valued at USD 17.14 Billion in 2023 and is expected to reach USD 30.69 Billion by 2029, with a CAGR of 10.20%. This growth is fueled by the deployment of 5G services and the increasing demand for connectivity in new locations and Tier I and Tier II cities.
Governments and data center operators in the APAC region are showing a growing interest in renewable energy sources. Initiatives are being taken to promote the adoption of renewable energy, such as Taiwan’s goal to generate 20% of its electricity through renewable sources by 2025. Data center operators are also joining in these efforts by using renewable energy and signing Power Purchase Agreements (PPAs).
Digitalization is a key agenda for governments in countries like Malaysia, Thailand, India, Australia, and others. These governments are implementing digital strategies to boost the digital growth of their countries. Additionally, there is a rise in mergers and acquisitions and joint ventures in the APAC data center market, with operators investing in such opportunities to drive revenue growth.
In terms of segmentation, colocation data centers are dominating the market in terms of investments, with new entrants entering the market. The demand for electrical infrastructure is high, with a need for lithium-ion and nickel-zinc batteries for UPS systems. Cooling infrastructure solutions, especially water-based ones, are being adopted due to the tropical climate in Southeast Asia.
The geographical analysis shows that China is leading in data center development, followed by India, Australia, Japan, Singapore, and Hong Kong. Countries like Indonesia, Malaysia, and the Philippines are attracting investments from data center operators, making them promising choices for future development.
Prominent data center investors in the APAC region include companies like Equinix, Digital Realty, NTT DATA, and more. New entrants are also emerging in the market, such as AdaniConneX, Edge Centres, and Evolution Data Centres, showing the increasing competition and growth potential in the market.
Overall, the APAC Data Center Colocation Market is set to witness substantial growth in the coming years, driven by factors like increased digitalization, renewable energy adoption, and the rise in mergers and acquisitions. With the region’s focus on sustainability and innovation, the market is poised for further expansion and development.