Asia-Pacific Data Center Market | Growth, Trends, COVID-19 Impact, and Forecast (2022-2027)

The Asia-Pacific Data Center Market is Segmented by End User (BFSI, Telecom and IT, Government, Healthcare, and Other End Users (Media & Entertainment, E-commerce, etc.)) and by Country.

Market Snapshot

Asia-Pacific Data Center Market Growth
Study Period: 2020-2027
Base Year: 2021
CAGR: 12.1 %

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Market Overview

The Asia-Pacific Data Center Market is expected to register a CAGR of 12.1% during the period 2022 to 2027. Deeper internet penetration, increased digital data flow, public cloud services, and higher predicted IoT growth drive the market.

  • The growing cloud computing in India, increasing internet penetration, government regulations for data generated in the country, and growing investment by foreign players are some of the major factors driving the demand for data centers in the country. The digital expansion of end-user industries in the country and initiatives by state governments to attract the construction of data centers in their states for economic growth will offer a massive opportunity to the studied market vendors over the forecast period.
  • Hyperscale operators have recently begun to create their capacity in the regions. With continuous investments from AWS, Microsoft, Alibaba, Tencent, and Facebook, the market in APAC is growing steadily. Several government bodies in APAC are also actively encouraging data center growth to digitalize their countries.
  • COVID-19's emergence substantially impacted the data center market's growth in 2020. On the other hand, the spike in demand for cloud computing network solutions is stifling market growth. Furthermore, the data center business has been hampered by several issues, including a scarcity of qualified personnel due to practical and total lockdown. Additionally, during the post-pandemic period, the data center market is expected to be driven by a boom in data center usage across the healthcare, government, and BFSI sectors.
  • Also, the major data center hubs in Asia, like Singapore, are imposing new restrictions and limits on locations for data centers on the island, which is becoming more challenging for providers; hence they are shifting their focus to India.

Scope of the Report

A data center is a physical location within an organization that shares IT operations and equipment to store, process, and distribute data and applications.

The Asia-Pacific Data Center Market is Segmented by End User (BFSI, Telecom and IT, Government, Healthcare, and Other End Users (Media & Entertainment, E-commerce, etc.)) and by Country (China, India, Japan, Malaysia, Indonesia, and Rest of APAC).

By End User
Telecom and IT
Other End Users (Media & Entertainment, E-commerce, etc.)
By Country
Rest of Asia-Pacific

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Key Market Trends

Increase in Adoption of Cloud Computing

  • The growing popularity of SaaS cloud solutions has offered significant industry growth potential. The shift to SaaS cloud solutions significantly impacted data center innovations during the previous decade. As enterprises migrate to colocation solutions, hybrid and multi-cloud networks are becoming less frequent in private data centers.
  • Increased cloud adoption will result in a higher volume of data generation and, as a result, a higher need for data storage and processing. In addition, the Indian government's National Digital Communications Policy of 2018 requires data localization in the country, requiring cloud providers to establish data centers.
  • According to research conducted by Telefonaktiebolaget LM Ericsson, the global mobile data traffic by the end of 2020 was approximately 51 exabytes, which is expected to reach 226 exabytes by 2026. This surge has led to network capacity expansions throughout the 4G era and would eventually prepare the world for mass-market adoption of 5G networks. The 5G networks are expected to capture approximately 54% of mobile data by 2026. The growth can also be ascribed to the increase in cellular radio sites and the deployment of additional wireless spectrum. As the industry moves toward the fifth generation of cellular network technology, the demand for mobile data usage for cloud gaming, OTT platforms, streaming services, and immersive applications is expected to increase significantly.
  • Over the coming years, the digital expansion of end-user industries in the country, as well as state government attempts to attract the construction of data centers in their states for economic growth, would provide a major opportunity for the examined market vendors.
Asia-Pacific Data Center Market Analysis

Advancements in Technology

  • The global data center industry will grow as emerging economies accelerate digital transformation. 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 is being created with the advancement of technology, and creative methods are being designed to make efficient data centers and related solutions.
  • 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.
  • With the emergence of edge computing applications, the demand for high-capacity networks is increasing significantly. Also, coping with the challenges of network latency and the need for immediate real-time insights has led to the evolution of multi-locational hybrid data architectures. As a result, the data transmission among the data centers or private exchange points has become crucial. Besides, businesses are shifting to the cloud, leading to higher bandwidth requirements, facilitating faster data processing speeds and seamless data transfer.
  • The surge in the usage of OTT platforms, streaming, and gaming has contributed to increased demand across North America since the pandemic outbreak. Additionally, several cloud service providers and social media companies invested aggressively in leasing colocation facilities in 2021 to cater to the increasing volume of data. The total inventory in the U.S. market has been growing by 17% to 3,358 MW in capacity during 2021. With upcoming developments in the 5G and IoT technologies, the data center colocation market is expected to expand further across North America over the next few years.
Asia-Pacific Data Center Market Report

Competitive Landscape

The Asia-Pacific data center market is highly concentrated due to higher initial investments and the low availability of resources. It is dominated by a few major players like SUNeVisionHoldings Ltd, China Mobile Limited, Equinix Inc., and OneAsiaNetwork Limited. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

  • January 2022 - Keppel Data Centers Holding (Keppel DC) has announced a collaboration with AsiaPac Technology (AsiaPac, a wholly-owned subsidiary of M1 Limited), which will offer Keppel DC’s clients access to more seamless rollout and implementation of hybrid and multi-cloud services. According to Keppel DC, driven by the urgency for greater digitalization, organizations are deploying more hybrid and multi-cloud models to effectively and rapidly support the changing needs of their businesses.
  • Arizton estimates a spending of USD35 billion on data centers and their related infrastructure during 2022-2027 in China market.

Recent Development

  • June 2022 - Lenovo Group Limited and PCCW Limited jointly announced that they have entered into definitive agreements to establish a strategic partnership to create a technology solutions business in the Asia Pacific region. The partnership, known as PCCW Lenovo Technology Solutions Limited (“PLTS”), will leverage the combined strengths of Lenovo and PCCW to create compelling value for both companies' employees, customers, and shareholders.
  • March 2022 - SUNeVision has acquired land designated for a cable landing station (CLS) or ground station in Hong Kong. The Lands Department announced this week that the tender for a site in Chung Hom Kok had been awarded to STT Limited on a 30-year land grant for HK$427.88 million.

Table of Contents


    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Key market trends and share of e-commerce of total Retail sector

    4. 4.4 Impact of COVID-19 on the e-commerce sales


    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for Cloud Computing, Robust and Advanced Telecommunications Infrastructure

    2. 5.2 Market Challenges

      1. 5.2.1 Higher Initial Investments

    3. 5.3 Analysis of key demographic trends and patterns related to industry in Asia-Pacific

    4. 5.4 Analysis of major data center construction compponents

  6. 6. Market Segmentation

    1. 6.1 By End User

      1. 6.1.1 BFSI

      2. 6.1.2 Telecom and IT

      3. 6.1.3 Government

      4. 6.1.4 Healthcare

      5. 6.1.5 Other End Users (Media & Entertainment, E-commerce, etc.)

    2. 6.2 By Country

      1. 6.2.1 China

      2. 6.2.2 India

      3. 6.2.3 Japan

      4. 6.2.4 Malaysia

      5. 6.2.5 Indonesia

      6. 6.2.6 Rest of Asia-Pacific

  7. 7. Competitive Landscape

    1. 7.1 Company Profiles

      1. 7.1.1 SUNeVision Holdings Ltd.

      2. 7.1.2 PCCW Limited

      3. 7.1.3 Towngas Telecommunications Company Limited

      4. 7.1.4 Telehouse Hong Kong CCC

      5. 7.1.5 China Mobile Limited

      6. 7.1.6 Colt Group Holdings Limited

      7. 7.1.7 Digital Realty Trust Inc.

      8. 7.1.8 Equinix Inc.

      9. 7.1.9 Global Switch Limited

      10. 7.1.10 NTT Communications Corporation

      11. 7.1.11 Cyxtera Technologies Inc.

      12. 7.1.12 CITIC Telecom International CPC Limited

      13. 7.1.13 OneAsia Network Limited

      14. 7.1.14 HGC GlobalCentre Limited

      15. 7.1.15 HKEX Group

    2. *List Not Exhaustive
  8. 8. Investment Analysis

  9. 9. Future Outlook of the Market

**Subject to Availability

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Frequently Asked Questions

The Asia-Pacific Data Center Market market is studied from 2020 - 2027.

The Asia-Pacific Data Center Market is growing at a CAGR of 12.1% over the next 5 years.

SUNeVision Holdings Ltd, PCCW Limited, Towngas Telecommunications Company Limited, Telehouse Hong Kong CCC, China Mobile Limited, Colt Group Holdings Limited, Digital Realty Trust Inc., Equinix Inc, Global Switch Limited, NTT Communications Corporation, Cyxtera Technologies Inc., CITIC Telecom International CPC Limited, OneAsia Network Limited, HGC GlobalCentre Limited, HKEX Group are the major companies operating in Asia-Pacific Data Center Market.

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