The Rise of the Asia Pacific Data Centre Industry: Market Analysis and Future Trends

  • PublishedFebruary 22, 2023

According to Renub Research’s latest report “Asia-Pacific Data Center Market, Size, Forecast 2023-2028, Industry Trends, Share, Growth, Company Analysis” Asia-Pacific Data Center Market is estimated to grow at a CAGR of 12% and reach US$ 53.58 Billion by 2028. A data center is a facility that gives shared access to applications and data using a complicated network, computing, and storage infrastructure. There is a rapid demand for data center services in the Asia Pacific. The increased digital connectivity, integrated with the proliferation of rich media and digital solutions, subsequently results in a sharp growth in the amount of data generated, consumed, stored, and transferred.

The data center industry will grow as emerging economies accelerate digital transformation. Software development and management, consultancies, online services, and business process outsourcing are transforming business standards and implementing information technology services in nearly every sector, including telecommunications, entertainment, banking, manufacturing, and healthcare. As a result, emerging economies like China and India are contributing significantly to the expansion of the data center industry. This time of digital transformation, coupled with the advancement of technology and creative methods, is being designed to make efficient data centers and related solutions.

Affordability of High-speed Internet will add to the Growth of Media and Entertainment Market:

Growing trends around Personalization and increased Digitalization due to rise in affordability of high-speed will drive the Market’s growth. Furthermore, with the 5G technology expected to become the most powerful next-generation cellular network technology in 2020, particularly in urban areas, the adoption of OTT (Over-the-top) content will continue to rise. For instance, the Indian government’s steps towards digital transformation, like digitization of cable TV and Direct-to-Home (DTH) services, are also adding to the adoption of IPTV in the country.

In addition, the IPTV scenario in India is witnessing change due to the advent of the network services provider, with the company providing free IPTV live subscriptions to its consumers. With other companies following suit, the demand for mobile-based IPTV services will increase in the region, increasing the demand for media and entertainment in the area.

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Need for Affordable Data center by Big Businesses will propel the Growth of Corporate Data Centers

Businesses with access to scalable cloud services can compete successfully without worrying about the decreasing returns brought on by growth. The data center provider ensures sufficient resources to manage a surge in resource demand. The scalability options of data center services are generating demand for corporate data centers in the region. These factors add to the dominance of the corporate data centres. Also, many big companies need affordable data centers that are competent in sending, retrieving, storing, and backing up vast amounts of information and data.

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Rise in Utilization of Cloud and Colocation Services is Propelling the Growth of Extreme Density Data Centers

The rapid and exponential growth and rising demand for data storage are due to the growing data traffic. Increased data utilization by businesses, organizations, and individuals generated a need for higher storage facilities. These factors are contributing to the substantial growth of the Extreme Density Data Center Market. The increasing demand for high-density redundant facilities in China is driving a change in the design and development of extreme-density data centers in the Asia-Pacific region. For instance, China has 50 internet users per 100 inhabitants, indicating numerous development possibilities. The connectivity ecosystem comprises 73 colocation data centers, 52 cloud service providers, and so on, supporting business growth in Asia-Pacific.

Presence of Large Enterprises will Propel the Growth of Wholesale Services Market

Large enterprises have a broad customer base, leading to the generation of substantial volumes of data. The need for ample commercial space for accumulating their servers creates a demand for wholesale colocation. The wholesale colocation providers have also started to lease out retail spaces within their existing facilities, leading to a blurring of lines between the retail services and wholesale services. The above- mentioned factors will propel the growth of the market in the region. 

Competitive Landscape:

Some key players present in the Asia-Pacific 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. Market Summary:

  • End-Use – The Report covers Asia-Pacific Data Centers Market, by end-use in 6 viewpoints (Retail, BFSI, IT & Telecom, Healthcare, Media & Entertainment, and Others).
  • Type – By Type, the Asia-Pacific Data Center Market, breakup in 2 viewpoints (Corporate Data Centre, and Web hosting Data Centre).
  • Density – Renub Research report covers by density in 3 viewpoints (High Density, Medium Density, Extreme Density, and Low Density).
  • Colocation Type – The Asia-Pacific Data Center Market by colocation type breakup in 2 viewpoints (Retail, and Wholesale).
  • Key Players – All the major players have been covered from 3 Viewpoints (Overview, Recent Developments, and Revenue) 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.


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