Asia-Pacific Data Center Market Size & Share Analysis - Growth Trends & Forecasts Up To 2029

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market will grow steadily and is expected to achieve 23,192.6 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to increase to 84.8 million sq. ft by 2029.
• Installed Racks: The number of installed racks is expected to reach 4,236,433 units by 2029. China is expected to house the maximum number of racks by 2029.
• DC Facilities: There are 900 colocation data center facilities in Asia-Pacific. China holds the highest share in the region, while Indonesia is the fastest-growing country-wise market. The increasing adoption of the cloud by most businesses is one of the factors boosting the number of data centers in the nation.
• Leading Market Player: AirTrunk Operating Pty Ltd holds the highest share of 7.8% when compared to its other competitors in the data center market. The company currently operates at an IT load capacity of 700 MW and is expected to increase its capacity during the forecast period.

Asia-Pacific Data Center Market Trends

Tier 3 is the largest Tier Type

• The tier 3 type has a majority of share in the APAC region due to its major advantage. These tiers have high redundancy with multiple paths for power and cooling. Edge and cloud connectivity are expected to increase tier 3 growth.
• In Australia, the Smart City Strategy developed by Newcastle Council focuses on how Big Data, the Internet of Things, and cloud connectivity can help create more livable and innovative cities. In the endemic phase of COVID-19, cloud computing was widely acknowledged as the foundation of Malaysia's digital journey. Primary providers such as Alibaba Cloud have enabled small businesses to trade as effectively as large enterprises. This has allowed such businesses to take full advantage of the services.
• The APAC tier 3 type operated at an IT load capacity of 6705.97 MW in 2022. The capacity during the forecast period (2023-2029) is expected to grow from 8522.04 MW in 2023 to 13981.5 MW in 2029, registering a CAGR of 8.60%.
• The tier 4 type is expected to have a majority in growth rate of CAGR of 20.40%. Developed countries adopt Tier-4 certification to achieve fault tolerance and redundancy. Tier 4 zones are adopted even in developing regions for this reason. For instance, Supernap Thailand is the only tier 4 facility in the country.
• The Tier 1 & 2 segment shows the least growth, as more than 70% of all traffic moves from server to server. Modern applications require significantly more data to travel within a data center at faster speeds and are less forgiving about latency.

China is the largest Country

• China and Australia are the major leading countries in the Asia-Pacific region for the data center market. China has the world's largest optical fiber network, 4G and 5G independent networking networks. At present, 916,000 base stations have been built in 5G, accounting for more than 365 million of the world's 70% to 80% of 5G connections. The growing demand for OTT services and streaming content online on high display formats are increasing significant data consumption. China does not have Netflix but has local OTT providers, such as Yuoku, Tencent Video, Mango TV, and Bilibili. The online streaming industry was worth around USD 34 billion in 2021, which is expected to increase with the growing number of users.
• In Australia, currently, about 10-12% of data is created and processed outside a centralized data center or cloud, but the number is expected to cross 65-70% by 2025, a global trend that is also reflected in Australia. The COVID-19 crisis highlighted that Australia has a great need for digital infrastructure to improve connectivity. Fiber lines are expected to remain the dominant fixed broadband technology through 2025, supported by the rising demand for high-speed Internet services and the government's focus on aggressive fiber to the x (FTTx) network expansions nationwide under the National Broadband Network (NBN) project. In terms of investment, in August 2022, the Australian operator Telstra selected new transport network infrastructure rollout partners and Mad Max-like machinery capable of laying dual fiber cables simultaneously as the operator accelerates its efforts to build out high-capacity data transport networks across a country renowned for its distinctive environmental challenges.

Asia-Pacific Data Center Industry Overview

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