Market Size of APAC Data Center Construction Industry
| 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.
