APAC Data Center Market Industry Outlook to 2027: 5G Deployments Fueling Edge Data Center Investments

DUBLIN, Jan. 26, 2022 /PRNewswire/ -- The "APAC Data Center Market - Industry Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.

The data center market in APAC is mainly dominated by colocation providers, followed by Internet and cloud service providers. Many cloud-based service providers are dependent on the construction of facilities by colocation providers to collocate space on a wholesale basis. However, in the past years, hyperscale operators have also started to build their own capacity in the regions.

The market in APAC is witnessing steady growth with continued investments from AWS, Microsoft, Alibaba, Tencent, and Facebook. Government agencies across several countries in APAC are also actively involved in facilitating data center growth to digitalize their nation.

The following factors are likely to contribute to the growth of the APAC data center market -

• 5G Deployments Fueling Edge Data Center Investments

• Innovative Data Center Technologies

• Adoption of Lithium-Ion UPS Batteries

• Adoption of Carbon-Free Energy Sources

• Cloud Adoption Drives Data Center Investments

• COVID-19 Impact on Data Center Investments

• Tax Incentives, Area Allocation, & Data Localization to Increase Investments

• M&A & Joint Ventures to Increase Data Center Growth in APAC

• Increase in Inland & Submarine Connectivity

• IT Infrastructure in Data Centers

KEY HIGHLIGHTS

• Data Center Investments in the Asia Pacific region grew by around 35% in 2021, compared to 2020.

• Over 250 data center projects are at various construction stages (open, under construction, announced, and planned) in APAC during 2021 with an expected operational date of up to 2024.

• Entry of new operators through Mergers & Acquisition and Joint Venture (JV) will continue to grow the investments in APAC data centers.

• The top five locations namely, Singapore, Tokyo, Osaka, Sydney, and Beijing accounted for over 60% of investments in 2021.

The Asia Pacific data center market has the following segmentation:

• Infrastructure

• IT Infrastructure

• Electrical Infrastructure

• Mechanical Infrastructure

• Cooling Systems

• Cooling Technique

• General Construction

• Tier Standard

• Facility Type

• Geography

SEGMENTATION ANALYSIS

• IT Infrastructure: In the IT infrastructure segment, major revenue is generated by servers as the growth in data generation is fueling demand for faster processing and efficient servers. Server infrastructure spending in APAC will cross $37 billion by 2027. Due to high internet penetration, data is generated in exabytes and petabytes. The data center operators need efficient IT infrastructure aided by continuous innovations by vendors towards the performance of this infrastructure in the APAC region.

• Electrical Infrastructure: Electrical infrastructure adoption will grow by around 7% year-over-year (YOY) in the APAC region. In terms of UPS adoption, the use of 750?1,500 kVA systems has increased along with a contribution from

• General Construction: Over $40 billion will be spent on building data center core & shell in APAC that includes spending on physical security, fire protection and suppression systems, and infrastructure management software. The data center market in APAC is currently witnessing an increase in the greenfield hyperscale data center projects.

VENDOR ANALYSIS

• Hewlett Packard Enterprise is a leading vendor in the server market. The demand for converged and hyper converged solutions are experienced strong growth in the market. Hewlett Packard Enterprise witnessed a strong demand for its mission-critical server product portfolio. The average selling price of servers has increased due to the rising cost of components.

• SMEs operating on-premises infrastructure solutions are adopting IT infrastructure that suits their operational business needs. APAC is witnessing a massive increase in data usage by consumers using services offered by companies in the e-commerce, social media, and entertainment industries. Digital services offered by the BFSI and government sectors are also key enablers for data growth in the market.

• Vendors offering solutions to match every business network's operational needs, thereby implementation of 5G has taken off in many countries and is likely to increase the data traffic leading to the procurement of high-capacity networking solutions in the data center market.

Key IT Infrastructure Providers

• Cisco Systems

• Dell Technologies

• Hewlett Packard Enterprise

• Huawei Technologies

• IBM

• Inspur

Key Support Infrastructure Providers

• ABB

• Caterpillar

• Cummins

• Eaton

• Rittal

• Schneider Electric

• STULZ

• Vertiv Group

Key Construction Contractors

• AECOM

• Arup

• Aurecon Group

• CSF Group

• DSCO Group

• Gammon Construction

• Larsen & Toubro (L&T)

• PM Group

• Studio One Design

• NTT Facilities Group

Key Data Center Investors

• AirTrunk Operating

• Digital Realty

• Equinix

• GDS Services

• Keppel Data Centres

• NTT Global Data Centers

• NEXTDC

• ST Telemedia Global Data Centres

New Entrants

• ESR Cayman

• AdaniConneX

• Data Center First

• Yondr

• Pure Data Centres Group

• Hickory Group

• Vantage Data Centers

For more information about this report visit https://www.researchandmarkets.com/r/jcoadr

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