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

The Asia Pacific Green Data Center Market is segmented by By Services (System Integration, Monitoring Services, Professional Services), Solutions (Power, Servers, Management Software, Networking technologies, Cooling), Users (Colocation, Cloud services), End user Industries (Healthcare, Financial Services, Government, Telecom and IT) and Geography.

Market Snapshot

APAC green datacenter market
Study Period: 2019-2026
Base Year: 2021
CAGR: 20.6 %

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Market Overview

The Asia Pacific Green Data Center Market is expected to register a CAGR of 20.6% during the forecast period 2021 - 2026. In Singapore, according to a local telco company, 7% of the country’s total energy consumption is derived from data centers, with this figure set to increase to 12% by 2030. Singapore also accounts for a massive 60% of Southeast Asia’s total data center supply. The cost of power is unpredictably increasing the operating expenses over the life of a data center. This is an issue of serious environmental concern and a cause for firms worldwide to take steps in the direction of sustainability.

  • Energy use in data centers throughout APAC is rising to match skyrocketing demand. A significant amount of the total energy used by data centers around the world is consumed by the APAC region, and there is no sign of slowing demand. Lack of energy management methods coupled with the unprecedented rise in demand is the major concern to the data center power market in the APAC region.
  • The increasing Power and utility prices are becoming roadblocks to this market. The rapid rise in power consumption has driven the state providers to increase the prices by at least 10% over the last couple of years. The decreasing price due to increasing competition with the increasing number of new entrants into the market is also cutting into the profits of data center providers.
  • The use of the Internet of Things and artificial intelligence spurred from the COVID-19 situation has increased the need for higher density processors, which produce more heat, thus requiring more cooling power. Moreover, data center energy usage has been compounded due to increased teleworking and other virtual activities brought on by the COVID-19 pandemic. Developments in the form of using sustainable technologies are, thus, on the rise.

Scope of the report

The Asia Pacific Green Data Center Market report describes the market size, growth potential, opportunities, overview, research, and segmentation based on services, solutions, end-users, and geographies. Moreover, the report analyses the market based on applications segregated by various ends user industries like BFSI, Healthcare, Government, Energy and Power, and Information Technology.

By Services
System Integration
Monitoring Services
Professional Services
Other Services
By Solutions
Power
Servers
Management Software
Networking Technologies
Cooling
Other Solutions
By Users
Colocation Providers
Cloud Service Providers
Enterprises
By End-user Industries
Healthcare
Financial Services
Government
Telecom and IT
Other Industries
By Country
China
India
Japan
South Korea
Rest of Asia Pacific

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Key Market Trends

Rise in electricity prices is affecting the datacenter market in the region negatively

  • Rising energy prices lead to increased business costs and narrow profit margins of companies. Prices of energy commodities — including oil, natural gas, and coal — soared in recent weeks as supply remains tight and demand has increased since a Covid-induced slowdown. This has largely contributed to power shortages in Asia.
  • China has recently allowed the price of coal-fired power to rise more sharply in the hope that market forces can address a power crunch that has threatened growth and caused ripple effects around the world.
  • In the Asia Pacific, limited land size, tropical climate, lack of cost-effective renewable energy supply, and shifting policies for data center development are vital challenges impeding the growth of data centers in the region and causing an increase in rental rates.
  • But there are green options out there, including measures to increase renewable energy supply and using viable cleaner fuel alternatives such as hydrogen.
  • It is incumbent on the government authorities to provide regulatory certainty and set out a roadmap for data center development that takes into account its climate impact. Government support for technological innovations such as hydrogen will help data center developers and operators integrate these sustainable features into the design and siting of their data centers.
APAC Green datacenter graph 1.png

Rise in efficient liquid cooling techniques aid the growth of the market

  • Data centers are currently engaged in increasing rack density to provide more robust services to the clients as workloads continue to grow. From smaller, modular facilities to large hyperscale data centers, efficiency and performance go hand in hand. With the increased rack space, air cooling will no longer be a viable solution.​
  • According to Submer, a medium data center server rack uses 3-6 kilowatt per rack/node. However, there are now HPCs that range around 60 kilowatts per rack/node. Similarly, according to a recent Uptime Institute survey of 422 respondents, racks with densities of 20kW and higher are becoming a reality for many data centers. The mean average density for the 2020 survey sample was 8.4kW/rack.​
  • Such an increase in the rack space and capacity creates a need for immersion-based cooling technology that absorbs heat far more efficiently than air due to the dielectric liquid. In terms of shipments, the adoption of racks ranging from 42U and 48U is high amongst some major technology companies such as Google, Microsoft, and Facebook. With cloud computing growth, the need for 42U, 45U, and 48U racks will increase.​
  • Several companies based out of Taiwan are engaging in significant developmental activities in the immersion cooling landscape. For instance, in June 2020, Taiwan-based cooling solution developer Kaori Heat Treatment is scheduled to kick off a liquid immersion cooling system shipment to a Chinese data center.
APAC Green datacenter graph 2.png

Competitive Landscape

The Asia Pacific Green Datacenter market is expected to be of moderate concentration as many players are investing in research and development to innovate green technologies.

  • APAC Green Data is a developer of data center campuses on Australia’s East Coast, which are designed to capture fundamental cost advantages related to land acquisition, renewable power supply, and other infrastructure and utilities. APAC Green Data plans to design and configure its projects with the objective to deliver sustained and long-term competitive cost advantages, provide low-cost ‘around the clock’ renewable power supply and assist data center operators and customers in meeting their accelerating carbon reduction and Net Zero targets.

Recent Developments

  • Hyper-Scale Data Center provider Microsoft has invested in buying solar energy generated by solar panels installed on rooftops across Singapore through a 20-year deal with solar energy provider Sunseap Group.
  • ST Telemedia announced, in June 2021, that its subsidiary ST Telemedia Global Data Centres India has started construction on its greenfield sited data center facility in Noida, India. It added that consistent with their focus on sustainability, the new data center will be a green building and source more than half of its power from renewable energy resources.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

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

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Market Drivers

    4. 4.4 Market Restraints

    5. 4.5 Opportunities in the Green Data Center Market

    6. 4.6 Industry Value Chain Analysis and COVID-19 Impact

  5. 5. TECHNOLOGY OVERVIEW

    1. 5.1 Technology Snapshot

    2. 5.2 Cooling Technologies

      1. 5.2.1 Liquid Cooling

      2. 5.2.2 Evaporative Cooling

      3. 5.2.3 Free Cooling

    3. 5.3 Power Usage lowering technologies

      1. 5.3.1 Low-power Servers

      2. 5.3.2 Solar and Wind Energy

    4. 5.4 Data Center Infrastructure Management

    5. 5.5 Consolidation and Virtualization Technologies

    6. 5.6 Ongoing Developments

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Services

      1. 6.1.1 System Integration

      2. 6.1.2 Monitoring Services

      3. 6.1.3 Professional Services

      4. 6.1.4 Other Services

    2. 6.2 By Solutions

      1. 6.2.1 Power

      2. 6.2.2 Servers

      3. 6.2.3 Management Software

      4. 6.2.4 Networking Technologies

      5. 6.2.5 Cooling

      6. 6.2.6 Other Solutions

    3. 6.3 By Users

      1. 6.3.1 Colocation Providers

      2. 6.3.2 Cloud Service Providers

      3. 6.3.3 Enterprises

    4. 6.4 By End-user Industries

      1. 6.4.1 Healthcare

      2. 6.4.2 Financial Services

      3. 6.4.3 Government

      4. 6.4.4 Telecom and IT

      5. 6.4.5 Other Industries

    5. 6.5 By Country

      1. 6.5.1 China

      2. 6.5.2 India

      3. 6.5.3 Japan

      4. 6.5.4 South Korea

      5. 6.5.5 Rest of Asia Pacific

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Fujitsu Ltd.

      2. 7.1.2 Cisco Technology, Inc.

      3. 7.1.3 HP Inc.

      4. 7.1.4 Dell Inc.

      5. 7.1.5 Hitachi Ltd.

      6. 7.1.6 Schneider Electric SE

      7. 7.1.7 EMC Corporation

      8. 7.1.8 IBM Corporation

      9. 7.1.9 Eaton Corporation

      10. 7.1.10 Emerson Network Powers

      11. 7.1.11 GoGrid, LLC

    2. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The APAC Green Data Center Market market is studied from 2019 - 2026.

The APAC Green Data Center Market is growing at a CAGR of 20.6% over the next 5 years.

Fujitsu Limited, Cisco Systems, Inc., Hewlett-Packard Company, Dell , Hitachi Ltd. are the major companies operating in APAC Green Data Center Market.

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