APAC Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| CAGR | 8.62 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Data Center Construction Market Analysis
The Asia-Pacific Data Center Construction Market is projected to register a CAGR of 8.62% over the next 5 years. The construction of data centers involves planning the location, stable electricity discom, electronics, and mechanical requirements. The growing demand for cloud computing, the Internet of Things (IoT), and artificial intelligence (AI) has drastically increased data generation, eventually driving the need for more data centers.
- The growing adoption of cloud technology by businesses such as telecom, e-commerce, healthcare, BFSI, and others has resulted in the rising construction of data centers in APAC. Indonesia is expected to be the fastest-growing country in the region, backed by ecosystem developments and favorable climatic conditions. Major data center operators, such as NTT, DCI, and BDx, are concentrating on new data center projects in Jakatar and Betam regions in the country.
- The need for next-generation data centers, such as hyperscale, is increasing to address high-power consumption and growing cloud computing AI. These data centers are said to adopt advanced new generators that run on fuel types such as hydrotreated vegetable oil (HVO), natural gas, and others to ensure environmental sustainability.
- In addition, the growing adoption of sustainable energy across all regional governments is expected to drive more renovations and new infrastructure requirements in the existing and under-construction data centers. Taiwan aims to rely on renewable energy by generating 20% of its electricity through wind and solar PV promotion plans by 2025, resulting in renewable power capacity reaching over 26 GW over the forecast period.
- Moreover, the impact of edge computing on data center construction is expected to be significant. Such disruption is fueled by the introduction of 5G, reducing dependence on the small and medium hyperscale data centers during the forecast.
- The impact of the pandemic was positive on the APAC data construction market as the hybrid model for work and internet usage peaked. The dependency on data centers forced the operators to increase their capacity to handle additional strains on the network.
APAC Data Center Construction Market Trends
China witnessing rapid data center construction activities
- The IT market in China has seen increased dependency on data centers in recent years. As the cloud becomes more popular, more hyperscale data centers are also being built. China released a series of policy documents giving the green light to construct several new data center clusters in four regions around the country.
- The new data center clusters are part of a plan called the 'Eastern Data, Western Computing.' This involves the construction of ten data center clusters and eight computing hubs to connect the active eastern regions to the resource-rich western regions and drive a balance for supply and demand of computing capacity aiding China's digital transformation and technological development.
- Further, an increase in the penetration rate of the 5G network in the country is expected to increase data generation, which would raise the need for more space for storing and processing these data. Apart from personal usage, 5G technology is expected to heavily influence industrial automation, primarily in manufacturing, mining, and healthcare. This trend is expected to raise the occupancy rate in data centers in the coming years, driving the demand for data center construction in the country during the forecast period.
- In addition, market movements have increased the cost of data center construction in some Asian countries like Singapore, Japan, and South Korea, as they fall under the top 10 countries affected by construction cost inflation. Thus, attracting more Data Center projects in China than in other Asian countries.
Growing Adoption of Hyperscale Data Centers in Large Enterprises is Driving the Market's Growth
- Hyperscale data centers are used in different sectors to increase computing ability, memory, networking infrastructure, and storage resources. The features of hyperscale data centers include the physical infrastructure and distribution systems supporting the data centers for maximizing cooling efficiency and the ability to scale computing tasks efficiently broadly.
- In Thailand, ST Telemedia Global Data Center (STT GDC) announced the construction of its hyperscale data center facility consisting of two seven-story buildings within a data center campus where each building will support an IT load of 20 MW. The construction is expected to take place in two phases. This increased rate of construction of hyperscale data centers is expected to drive the market's growth significantly.
- In addition, emerging economies, including India, Indonesia, and Malaysia, provide affordable alternatives to consolidated markets such as Singapore and Japan. Incentives and tax benefits offered by the government of emerging economies are projected to drive the new data center construction activities during the forecast period.
APAC Data Center Construction Industry Overview
The Asia-Pacific Data Center Construction Market is fragmented, with the top five companies occupying most of the market share. The major players in this market are AECOM, DSCO Group, NTT Facilities, Studio One Design, Turner, and Townsend (sorted alphabetically).
In October 2022, Kuko's group K2 partnered with Sinar Mas to construct, develop and operate hyperscale data centers in Indonesia. The JV's first development, K2 Data Centre Jakarta 1 Campus, comprises four data center facilities in Bekasi Regency, Greater Jakarta, and delivers 58.8 MW of IT capacity at full build-out. The first phase is planned to be in service in early 2024. Thus, providing opportunities to
APAC Data Center Construction Market Leaders
AECOM
DSCO Group
NTT Facillities
Studio one Design
Turner and Townsend
*Disclaimer: Major Players sorted in no particular order
APAC Data Center Construction Market News
- June 2023: Bridge Data Centers announced expanding its hyperscale data centers with an IT power capacity of 64MW in Kuala Lumpur, Malaysia. This provides opportunities for Data Center Construction Vendors in the market.
- July 2022: L&T Construction's Buildings & Factories business bagged a contract from renowned data center service providers to construct data centers with a total capacity of 10.8 MW in Mumbai and Navi Mumbai.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. MARKET INSIGHTS
5. Market Overview
6. Industry Attractiveness - Porter's Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Buyers
6.3 Threat of New Entrants
6.4 Threat of Substitutes
6.5 Degree of Competition
7. Key Industry Statistics
7.1 IT Load Capacity
7.2 Raised Floor Space
7.3 Colocation Revenue
7.4 Installed Racks
7.5 Rack Space Utilization
8. MARKET DYNAMICS
9. Market Drivers
9.1 Growing Demand for SMAC (Social, Mobile, Analytics, and Cloud) Applications
9.2 Growing Adoption of Hyperscale Data Centers in Large Enterprises
9.3 Major Initiatives Undertaken by Governments to Promote Digital Economy and Connectivity Infrastructure
10. Market Restraints
10.1 Environmental, Cost, and Workforce-related Challenges
11. MARKET SEGMENTATION
11.1 By Infrastructure
11.1.1 Electrical Infrastructure
11.1.1.1 UPS Systems
11.1.1.2 Other Electrical Infrastructure
11.1.2 Mechanical Infrastructure
11.1.2.1 Cooling Systems
11.1.2.2 Racks
11.1.2.3 Other Mechanical Infrastructure
11.1.3 Other Infrastructure
11.2 By DC Size
11.2.1 Small
11.2.2 Medium
11.2.3 Large
11.2.4 Massive
11.2.5 Mega
11.3 By Tier Type
11.3.1 Tier 1 & 2
11.3.2 Tier 3
11.3.3 Tier 4
11.4 By End-User
11.4.1 IT & Telecommunication
11.4.2 BFSI
11.4.3 Government
11.4.4 Healthcare
11.4.5 Other End-Users
11.5 By Country
11.5.1 Australia
11.5.2 India
11.5.3 China
11.5.4 Japan
11.5.5 Hong Kong
11.5.6 Vietnam
11.5.7 Taiwan
11.5.8 Singapore
11.5.9 South Korea
11.5.10 New Zealand
11.5.11 Malaysia
11.5.12 Thailand
11.5.13 Indonesia
11.5.14 Phillipines
12. COMPETITIVE LANDSCAPE
13. Company Profiles
13.1 AECOM
13.2 Aueron Group
13.3 CSF Group
13.4 DSCO Group
13.5 Gammon Construction
13.6 NTT Facillities
13.7 Studio one Design
13.8 Sato Kogyo
13.9 Powerware Systems
13.10 Obayashi Corporation
13.11 Nakano Corporation
13.12 M+W Group
13.13 Kienta Engineering Construction
13.14 Hutchinson Builders
13.15 Fortis Construction
13.16 IBM Corporation
13.17 SAS Institute Inc.
13.18 JE Dunn Construction Group Inc
13.19 Hensel Phelps Construction Co. Inc.
13.20 DPR Construction Inc.
13.21 Turner Construction Co.
- *List Not Exhaustive
14. INVESTMENT ANALYSIS
15. MARKET OPPORTUNITIES AND FUTURE TRENDS
APAC Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The APAC data center construction market is segmented by infrastructure (electrical infrastructure (UPS systems and other electrical infrastructure), mechanical infrastructure (cooling systems, racks, and other mechanical infrastructure), and other infrastructure), by tier type (tier-I and tier-II, tier-III, and tier-IV), data center size (small, medium, large, massive, mega), Country (China, India, Japan, Hong Kong, Indonesia, Thailand, Singapore, Australia, Vietnam, New Zealand, Taiwan, South Korea, Malaysia) and by end-user (IT & telecommunication, BFSI, government, healthcare). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Infrastructure | |||||
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| Other Infrastructure |
| By DC Size | |
| Small | |
| Medium | |
| Large | |
| Massive | |
| Mega |
| By Tier Type | |
| Tier 1 & 2 | |
| Tier 3 | |
| Tier 4 |
| By End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End-Users |
| By Country | |
| Australia | |
| India | |
| China | |
| Japan | |
| Hong Kong | |
| Vietnam | |
| Taiwan | |
| Singapore | |
| South Korea | |
| New Zealand | |
| Malaysia | |
| Thailand | |
| Indonesia | |
| Phillipines |
Frequently Asked Questions
What is the current APAC Data Center Construction Market size?
The APAC Data Center Construction Market is projected to register a CAGR of 8.62% during the forecast period (2024-2030)
Who are the key players in APAC Data Center Construction Market?
AECOM , DSCO Group, NTT Facillities, Studio one Design and Turner and Townsend are the major companies operating in the APAC Data Center Construction Market.
What years does this APAC Data Center Construction Market cover?
The report covers the APAC Data Center Construction Market historical market size for years: . The report also forecasts the APAC Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
APAC Data Center Construction Industry Report
Statistics for the 2024 APAC Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Data Center Construction analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
