Chicago, Aug. 01, 2022 (GLOBE NEWSWIRE) -- According to Arizton’s latest research report, APAC data center colocation market is expected to grow at a CAGR of over 7% during 2022-2027 reaching investment of more than USD 18 billion. The data center market in APAC is mainly dominated by colocation providers, followed by internet and cloud service providers. There are also many cloud-based service providers that are dependent on the construction of facilities by colocation providers to collocate space on a wholesale basis.
APAC Data Center Colocation Market Report Scope
Report Attributes | Details | |
MARKET SIZE (2027) | Over $18 Billion | |
MARKET SIZE (2021) | Around $12 Billion | |
CAGR (2021-2027) | 7.13% | |
MARKET SIZE BY AREA (2027) | 12.76 million Sq. Ft | |
MARKET SIZE- POWER CAPACITY (2027) | 2,668 MW | |
BASE YEAR | 2021 | |
FORECAST YEAR | 2022-2027 | |
MARKET SEGMENTS | Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standard, and Region | |
COUNTRIES COVERED | China, Hong Kong, Australia, New Zealand, India, Japan, Taiwan, South Korea, Rest of APAC, and Southeast Asia |
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Millions of dollars are being invested by new players in the building of core and shell properties throughout APAC. Within two years of the initial build-out, the full commissioning of these new facilities is anticipated. Large data center investments in APAC nations will significantly boost the local economy through taxation. To lower their CAPEX and OPEX, data center operators, however, favor to construct facilities in areas with tax incentives. Therefore, to encourage the building of data centers throughout the predicted period, it is crucial for the government to offer tax breaks and incentives. The construction of data centers continues to grow at a substantial pace as leading data center services providers invest more than $1 billion in new development and expansions. The rise in demand across several industries has led data center suppliers to sign several M&A contracts to expand their portfolios. The data center market is also interested in the acquisition of data centers by real estate and investment firms.
Key Insights
- In 2021, GDS Services led the market in terms of investment, contributing to around one-fifth of the overall investment in the APAC market. Other major investors included companies such as Equinix, Digital Realty, AirTrunk, Keppel Data Centres, 21Vianet Group (VNET), NTT Communication, SpaceDC, and NEXTDC, among others.
- M&As and Joint Ventures will lead to new colocation data center operators entering various APAC markets. For instance, in 2021, Vantage Data Centers acquired PCCW’s data centers in Hong Kong and Kuala Lumpur to establish its foothold in the region.
- Wholesale colocation contributed to 32% of the revenue in 2021 and is expected to grow rapidly across APAC in coming years, owing to increasing demand for computing capacity from enterprises, cloud providers, big data, and IoT organizations.
- Renewable energy adoption is increasing rapidly in APAC. In 2022, Sify Technologies announced the signing of power purchase agreements for wind and solar power with Vibrant Energy Holding for over 220 MW in India.
Market Segmentation
Colocation Service
- Retail Colocation
- Wholesale Colocation
Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
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 & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Cooling Technique
- Air-Based Cooling Technique
- Liquid-Based Cooling Technique
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS
Tier Standard
- Tier II
- Tier III
- Tier IV
Region
- APAC
- China
- Hong Kong
- Australia
- New Zealand
- India
- Japan
- Taiwan
- South Korea
- Rest of APAC
- Southeast Asia
Key Support Infrastructure Providers
- ABB
- Caterpillar
- Cummins
- Eaton
- Rittal
- Schneider Electric
- STULZ
- Vertiv
Other Prominent Support Infrastructure Providers
- Airedale International Air Conditioning
- Alfa Laval
- Canovate
- Delta Electronics
- EAE
- HITEC Power Protection
- Legrand
- Rolls-Royce Power Systems
- Shenzhen Envicool Technology
- Siemens
- KOHLER (SDMO)
- Mitsubishi Electric Corporation
- Socomec
- Trane (Ingersoll Rand)
Key Construction Contractors
- AECOM
- Arup
- Aurecon
- CSF Group
- DSCO Group
- Gammon Construction
- Larsen & Toubro (L&T)
- PM Group
- Studio One Design
- NTT Facilities Group
Other Prominent Construction Contractors
- Chung Hing Engineers Group
- AWP Architects
- BYME Engineering Ltd
- Corgan
- DPR Construction
- Faithful+Gould
- Fortis Construction
- Hutchinson Builders
- ISG
- Kienta Engineering
- Linesight
- LSK Engineering
- M+W Group
- Nakano Corporation
- Obayashi Corporation
- Powerware Systems (PWS)
- Sato Kogyo
- Sterling and Wilson (Shapoorji Pallonji Group)
- Red-Engineering
- Turner & Townsend
Key Data Center Investors
- AirTrunk Operating
- Digital Realty
- Equinix
- GDS Services
- Global Switch
- KDDI
- Keppel Data Centers
- NEXTDC
- NTT Global Data Centers
- ST Telemedia Global Data Centers
- SUNeVison
- Vianet Group
Other Prominent Data Center Colocation Service Providers
- AIMS Data Centre
- Bharti Airtel
- Big Data Exchange (BDx)
- Bridge Data Centers
- Canberra Data Centers
- Chayora
- ChinData Group
- Colt Data Centre Services (COLT DCS)
- CtrlS
- Iron Mountain
- LG Uplus
- Mantra Data Centers
- Pi Data Centers
- Princeton Digital Group (PDG)
- Regal Orion
- Sify Technologies
- Space DC
- Tenglong Holdings Group
- Yotta Infrastructure
- VADS
New Entrants
- Data Center First
- Vantage Data Centers
Explore data center knowledge base profile to know more about the industry.
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