According to Arizton’s latest research report, the APAC data center colocation market is growing at a CAGR of 10.19% during 2023-2029.
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Report Scope:
Market Size (2029): USD 30.69 Billion
Market Size (2023): USD 17.14 Billion
CAGR (2023-2029): 10.19%
Market Size – Area (2029): 21.85 Million Sq. Ft
Power Capacity (2029): 4,259 MW
Historic Year: 2020-2022
Base Year: 2023
Forecast Year: 2024-2029
Market Segmentation: Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography
Geographical Analysis: APAC and Southeast Asia
The APAC region is witnessing rapid growth in the data center colocation market, with key players including China, India, Australia, Japan, Singapore, Hong Kong, South Korea, and Indonesia. In 2023, major investors like GDS Services, Equinix, & Digital Realty are shaping the landscape. This region is also experiencing a surge in edge data centers, driven by rising demand from sectors like IoT, AI, and cloud technologies. Governments in countries such as India, China, Japan, and South Korea are promoting data center initiatives to support digital transformation and online education. Local colocation providers are expanding their operations, further boosting market growth. Additionally, investments in submarine cable projects by telecom companies and enterprises enhance broadband speeds and interconnectivity among data centers, solidifying APAC’s position as the fastest-growing global data center market.
Vendor Insights
In 2023, Chindata Group emerged as the leading investor in the APAC data center colocation market, capturing a market share of approximately 9.8%. The company expanded its footprint with new projects across Malaysia. GDS Services followed closely, with a share of around 9.4%, investing in data centers in Hong Kong, Singapore, and Malaysia. AirTrunk ranked third with a 5.8% market share, adding over 102,133 rack cabinets through developments in Australia, Hong Kong, Japan, and Malaysia.
Other notable investors included VNET Group, which held a 5.7% market share and invested over $972 million, and Beijing Sinnet Technology, with a 4.7% share and around $810 million in investments across APAC. Equinix and NTT DATA held a 2.4% market share, investing in multiple regional facilities.
Chindata Group also led in area, adding approximately 841,500 square feet, while GDS Services followed with 6.7%. The APAC colocation market remains highly competitive, with numerous providers investing significantly in new facilities to meet growing demand. New entrants are expected to bring additional capacity online within two years, further intensifying the race to accommodate the expanding digital landscape in the region.
Key Trends in the APAC Data Center Market
Increased Digitalization
Digitalization is a key focus for governments across the APAC region, including Malaysia, Thailand, India, Australia, Japan, South Korea, China, and New Zealand. Many countries are implementing digital strategies to enhance their digital growth. For example, Australia has launched its Digital Economy Strategy 2022 Update, aiming to advance the country’s digital economy by 2030.
Rise in Mergers and Acquisitions & Joint Ventures
The APAC data center market’s significant growth potential drives operators to invest in mergers and acquisitions and form joint ventures for new projects. Global organizations are increasingly entering the market through these partnerships. A notable example is STACK Infrastructure, which entered the South Korean market through a joint venture with ESR Cayman to develop a data center.
The China Data Center Colocation Market Revenue to Reach 28.70 Billion by 2029
As the world’s largest data center market, China is poised for significant growth with numerous upcoming infrastructure projects. Many of these initiatives will involve retrofitting existing buildings, optimizing land use, and enhancing efficiency.
In 2023, China introduced its first commercial subsea data center in Lingshui Li Autonomous County, Hainan Province. This innovative underwater facility features a cylindrical design, measuring 3.6 meters in diameter and weighing 1,300 tonnes—equivalent to about 1,000 cars. The concept aligns with Hainan’s 14th Five-Year Plan (2021–2025), which aims to bolster the marine economy by establishing 100 data cabins to drive technological innovation, economic growth, and environmental sustainability.
China remains a cost-effective location for data center development, with construction costs in Shanghai ranging from $7 to $8 per watt in 2023. Additionally, land prices in Beijing were approximately $340 per square foot, lower than other APAC cities like Tokyo, Seoul, and Jakarta.
In Southwest China, Guizhou Province is actively developing multiple data center projects, with an aggregate investment of $2.9 billion in 2023. Recent regulations mandate that 70% of urban buildings achieve green certification by 2022, pushing for low-carbon construction and increased use of renewable energy sources.
Key industrial tech parks and Free Trade Zones, such as the Shanghai Free Trade Zone and Pilot Free Trade Zone in Shandong, along with various industrial tech zones in Guangdong, Liaoning, Fujian, and Zhejiang, further enhance China’s data center ecosystem.
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The Report Includes the Investment in the Following Areas:
Colocation Services
- Retail Colocation
- Wholesale Colocation
Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
Cooling Techniques
- Air-based Cooling
- Liquid-based Cooling
General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression
- Physical Security
- DCIM/BMS Solutions
Tier Standards
- Tier I & II
- Tier III
- Tier IV
Geography
- APAC
- China
- Hong Kong
- Australia
- New Zealand
- India
- Japan
- Taiwan
- South Korea
- Rest of APAC
- Southeast Asia
- Singapore
- Indonesia
- Malaysia
- Thailand
- Philippines
- Vietnam
- Other Southeast Asian Countries
Competitive Landscape
Prominent Data Center Investors
- AirTrunk
- Big Data Exchange
- CDC Data Centres
- Chayora
- Chindata Group
- Colt Data Centre Services
- CtrlS Datacenters
- Digital Edge DC
- Digital Realty
- Equinix
- GDS Services
- Iron Mountain
- Keppel Data Centres
- LG Uplus
- NEXTDC
- NTT DATA
- Nxtra by Airtel
- OneAsia Network
- Open DC
- Pi DATACENTERS
- Princeton Digital Group
- Regal Orion
- SpaceDC
- ST Telemedia Global Data Centres
- SUNeVison Holdings (iAdvantage)
- Sify Technologies
- Tenglong Holding Group
- Viettel IDC
- VNET
- Yotta Infrastructure Solutions
New Entrants
- AdaniConneX
- Data Center First
- Edge Centres
- EdgeConneX (EQT Infrastructure)
- Evolution Data Centres
- Hickory
- MettaDC
- Nautilus Data Technologies
- Pure Data Centres
- Vantage Data Centers
- YCO Cloud
- YTL Data Center
- Yondr
The Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to thoroughly understand the APAC data center colocation market. Request for Free Sample to get a glance at the report now: https://www.arizton.com/market-reports/apac-data-center-colocation-market-report-2024
What Key Findings Will Our Research Analysis Reveal?
How big is the APAC data center colocation market?
What is the growth rate of the APAC data center colocation market?
What are the key trends in the Asia-Pacific data center colocation industry?
What is the estimated market size in terms of area in the APAC data center colocation market by 2029?
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