CHICAGO, June 22, 2023 /PRNewswire/ -- According to Arizton's latest research report, the APAC data center market will grow at a CAGR of 5.54% during 2022-2028.
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APAC is one of the most dynamic global data center markets, with increased investments from colocation providers and hyperscale operators. The growth in the number of internet users, increased use of social media, high smartphone penetration, increased adoption of cloud services, and the need for enterprises to migrate from server room environments to data centers are the major drivers of the data center market in APAC.
Government agencies across several countries are actively engaged in data center growth to digitalize their operations. The market is expected to witness the deployment of edge computing colocation places across various countries, particularly in countries with a shortage of industrial lands to develop data center facilities.
5G rollouts are expected to increase data generation and the processing capability of end-users using mobile devices. Improved fixed broadband and mobile connectivity drive the use of social media by consumers and Big data analytics by enterprises, leading to the growth of the digital economy.
Asia Pacific Data Center Market Report Scope
Report Attributes | Details |
Market Size (Investment) | USD 96.85 Billion (2028) |
Market Size (Area) | 18.37 Million sq. Feet (2028) |
Market Size (Power Capacity) | 3,606 MW (2028) |
CAGR (Investment) | 5.54% (2022-2028) |
Base Year | 2022 |
Forecast Year | 2023-2028 |
Market Segmentation | Facility Type, Infrastructure, IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography |
Geographic Analysis | APAC |
Countries Covered | China, Hong Kong, Australia, New Zealand, India, Japan, South Korea, Taiwan, and the Rest of APAC) and Southeast Asia (Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Other Southeast Asian Countries |
Market Dynamics | · Increased Submarine Cable & Inland Connectivity · Incentives for Data Center Construction · Growth in the Adoption of Renewable Energy · Rise in M&As & JVs |
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Investment Opportunities
The Government of China continuously takes initiatives, such as digitalization initiatives, development of industrial lands, and others, for the growth of the data center market in the country. The growth also aids the market for data center development in Hong Kong in demand for data storage in Hong Kong due to the Personal Data Ordinance that mandates organizations to store data within Hong Kong borders.
The Australia data center market is driven by technology innovations, adoption of HPC technologies, government initiatives, growth in connectivity and cloud presence, and increased data center investments. New Zealand is the most preferred location with enhanced network connectivity and internet penetration. Auckland is the most preferred location for data center development due to its proximity to end users.
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Segmentation Insights
- Servers are available in a variety of types and configurations. Regarding form factors, servers are classified as rack, blade, and tower. The most common servers in the industry include rack and blade servers from vendors such as Cisco Systems, Hewlett Packard Enterprise, Dell Technologies, IBM, Lenovo, and NetApp.
- There is an increasing opportunity for vendors providing lithium-ion and nickel-zinc batteries used in UPS systems. Operators can also adopt new-age generator sets that run on hydrotreated vegetable oil (HVO), natural gas, etc.
- APAC data center market is witnessing the adoption of water- and air-based cooling solutions, with water-based cooling solutions witnessing major demand in Southeast Asia due to the tropical climate.
Key Development
- The area occupied by enterprise data centers is lower than other major data centers. During the forecast period, enterprise operators will likely add more areas in India, especially in the government, telecom, and BFSI sectors. Cloud-on-ramps and solutions, such as Amazon Outposts, are also expected to be adopted across cities by operators. Some ongoing projects:
- Huawei Technologies is developing its enterprise data center with around 75 thousand square feet in Batam, Indonesia.
- Myanmar Government is developing its enterprise data center with around 500 square feet in Naypyitaw, Myanmar.
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Key Questions Answered in the Report:
How big is the APAC data center market?
What is the growth rate of the APAC data center market?
What is the estimated market size in terms of area in the APAC data center market by 2028?
What are the key trends in the APAC data center industry?
How many MW of power capacity is expected to reach the APAC data center market by 2028?
Market Segmentation
Facility Type
- Hyperscale Data Centers
- Colocation Data Centers
- Enterprise Data Centers
Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- Power Distribution Units
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers, and Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Cooling Techniques
- Air-based Cooling Technique
- Liquid-based Cooling Technique
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Physical Security
- Fire Detection & Suppression
- DCIM
Tier Standard
- Tier I & II
- Tier III
- Tier IV
Geography
- APAC
- China
- Hong Kong
- Australia
- New Zealand
- India
- Japan
- South Korea
- Taiwan
- Rest of APAC
- Southeast Asia
- Singapore
- Indonesia
- Malaysia
- Thailand
- Philippines
- Vietnam
- Other Southeast Asian Countries
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