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APAC Data Center Colocation Market - Industry Outlook & Forecast 2025-2030

Publisher Arizton Advisory and Intelligence
Published Aug 29, 2025
Length 337 Pages
SKU # ARZ20346528

Description

The APAC data center colocation market size by investment is expected to grow at a CAGR of 17.25% from 2024 to 2030.

Countries such as China, Hong Kong, Australia, Japan, India, and Singapore are among the top and established data center markets in the APAC. The countries such as Malaysia, South Korea, Indonesia, Thailand, New Zealand, the Philippines, and Taiwan witness higher investments and are poised to become developed markets in the years to come.

APAC DATA CENTER COLOCATION MARKET TRENDS

Introduction of HVO Fuel for Generators
  • The data centers are facing increasing pressure to reduce their carbon footprint and operate sustainably. Hydrotreated Vegetable Oil (HVO) has emerged as a viable low-carbon alternative to diesel fuel for backup generators in the APAC data center colocation market. HVO is a type of renewable diesel produced by hydrotreating waste vegetable oils and animal fats, making it a drop-in replacement for conventional fossil diesel.
  • In May 2025, Bridge Data Centres entered into a Memorandum of Understanding (MoU) with EcoCeres, a biofuels company based in Hong Kong, to explore the use of Hydrotreated Vegetable Oil (HVO) as a potential alternative to diesel in its backup generation systems. The two companies will collaborate on developing technical specifications and practical solutions to integrate HVO into their operations to establish Singapore as a central hub for this initiative.
  • In July 2024, ST Telemedia Global Data Centres announced that it had become the first data center operator in Singapore to use HVO fuel in generators in all facilities across Singapore, with the initial deployment of around 50,000 liters.
Adoption of Artificial Intelligence
  • The APAC region is witnessing a notable rise in the adoption of Artificial Intelligence (AI) and Machine Learning (ML), emerging as a leading hub for generative AI technologies, second only to North America. This growing trend spans industries such as finance, healthcare, and logistics, fueling the need for advanced, high-performance data center infrastructure.
  • Several data center operators have started developing AI-ready data centers in the region to accommodate AI workloads being rapidly generated by customers of different industry sectors.
  • In February 2025, AirTrunk revealed plans to build AirTrunk JHB2, its second cloud and AI-ready data center in Iskandar Puteri, Johor. With a scalable capacity exceeding 270 megawatts (MW), JHB2 is designed to meet the growing demand from global public cloud and technology firms in the region.
  • Many leading data center and infrastructure companies, such as Equinix and Digital Realty, are actively collaborating with technology partners and investing in AI development to enhance their service offerings. These efforts include integrating AI models for smarter energy management, predictive maintenance, and optimizing data center operations.
SEGMENTATION INSIGHTS
  • Innovative data center technologies are gaining traction in the APAC data center colocation market due to its diverse climates and growing digital demand. Varying weather from tropical humidity to extreme heat requires advanced cooling solutions and reliable power backup to ensure data center efficiency and uptime. These innovations help manage energy use, reduce costs, as well as support the rapid growth of 5G, AI, and cloud services.
  • In March 2023, Nxtra by Airtel, a leading colocation data center in India, began experimenting with fuel cells to lower its carbon emissions and decrease dependence on non-renewable energy. Currently, about 10% of Nxtra’s Bengaluru data center is powered by hydrogen-ready fuel cells, marking the first use of this technology in any data center in the country.
  • In March 2025, a consortium of Japanese companies and financial institutions planned to launch a demonstration project for an offshore floating data center off Yokohama’s coast. The group includes NYK Line, NTT Facilities, Eurus Energy Holdings, MUFG Bank, and the city of Yokohama. The project will feature a containerized data center installed on a floating platform, powered by solar panels and battery storage, with the potential integration of offshore wind energy being considered.
  • In May 2025, Bridge Data Centres entered into a Memorandum of Understanding (MoU) with EcoCeres, a biofuels company based in Hong Kong, to explore the use of Hydrotreated Vegetable Oil (HVO) as a potential alternative to diesel in its backup generation systems. The two companies will collaborate on developing technical specifications and practical solutions to integrate HVO into their operations to establish Singapore as a central hub for this initiative.
APAC DATA CENTER COLOCATION MARKET GEOGRAPHICAL ANALYSIS:
  • As of June 2025, there were over 850 existing third-party data center facilities in the APAC region, excluding China, operated by more than 220 companies. Additionally, over 360 new data center facilities are currently in the planning and development stages, with contributions from over 180 operators; these facilities are expected to be operational within the next 5 to 6 years.
  • China is among the top and well-established data center markets in the APAC data center colocation market. China has a share of around 46% of the overall colocation investments in the APAC region in 2024. The country also accounts for a substantial share of the data center landscape. The market is among the top priority locations in the region.
  • In 2024, Japan contributed over 10.09% (approximately $2.87 billion) of the total colocation revenue generated in the APAC region. This makes Japan the second-largest contributor to the market after China, underscoring its significance in the Asia Pacific data center colocation market.
  • Data center construction costs differ widely across countries, with Japan and Singapore among the priciest markets, averaging approximately USD 14–15 million and USD 13–14 million per megawatt, respectively. These high costs are largely due to factors such as scarce land, expensive labor, and strict building regulations. In contrast, countries like India and China offer significantly lower construction expenses, due to more economical labor, land availability, and favorable regulatory conditions, making them appealing for cost-effective data center development.
VENDOR LANDSCAPE
  • The APAC data center colocation market has the presence of colocation operators such as AirTrunk, CDC Data Centres, China Mobile, China Telecom, Chindata Group, China Unicom, Digital Realty, Equinix, GDS Services, Keppel Data Centres, NEXTDC, NTT DATA, Princeton Digital Group, ST Telemedia Global Data Centres, Vantage Data Centers, and other prominent operators.
  • New Entrants in the APAC data center colocation market include Ada Infrastructure, CloudHQ, CyrusOne, Datagrid, Digital Halo, Doma Infrastructure Group, DAMAC Digital, Epoch Digital, Evolution Data Centres, FutureData, Gaw Capital, GreenSquareDC, Open DC, Regal Orion, SC Zeus Data Centers, SEAX Global, TPG Angelo Gordon, Trifalga, YCO Cloud, Yondr, and several others.
  • The APAC data center colocation market has been witnessing tremendous growth across countries, which has led to multiple investment opportunities in the market. There has been an influx of several investors in a particular market through M&A, apart from direct investments. For instance, in June 2025, Equinix announced the completion of the acquisition of three data centers in Manila, the Philippines, from Total Information Management, a technology solutions provider. The three carrier-neutral and high-performance data centers – MN1, MN2, and MN3 – provide more than 1,000 cabinets of capacity as well as land for further expansion.
  • In terms of investment in the APAC data center colocation market, GDS Services led the market and was among the major investors in 2024. It accounted for a market share of about 6.40% in the APAC data center colocation market. In 2024, the company added a power capacity of around 165 MW through the construction and expansion of data centers.
  • AirTrunk led the market in terms of existing core & shell power capacity. The company was followed by NTT DATA and Equinix, having a presence in all the major countries, and each company having a power capacity of over 625 MW and 560 MW, respectively.
Prominent Colocation Operators
  • AirTrunk
  • CDC Data Centres
  • China Unicom
  • China Mobile
  • China Telecom
  • Chindata Group
  • Digital Realty
  • Equinix
  • GDS Services
  • Keppel Data Centres
  • NTT DATA
  • NEXTDC
  • Princeton Digital Group
  • ST Telemedia Global Data Centres
  • Telkom Indonesia
  • Vantage Data Centers
Other Prominent Colocation Operator
  • AT TOKYO
  • Beijing Sinnet Technology
  • AdaniConneX
  • AIMS Data Centre
  • BDx Data Centers
  • CapitaLand
  • Chayora
  • Chief Telecom
  • Chunghwa Telecom
  • CMC Telecom
  • Colt Data Centre Services
  • CtrlS Datacenters
  • DCI Data Centers
  • Digital Edge DC
  • DITO Telecommunity
  • Dr. Peng’s Telecom & Media Group
  • EdgeConneX
  • Empyrion Digital
  • ePLDT
  • ESR
  • Etix Everywhere
  • FPT Telecom
  • Fujitsu
  • Global Switch
  • Goodman
  • Internet Initiative Japan (IIJ)
  • Iron Mountain
  • iTech Towers Data Centre Services
  • KT Corp
  • LG Uplus
  • Macquarie Data Centres
  • Mapletree Investments
  • Nxera (Singtel)
  • Nxtra by Airtel
  • OneAsia Network
  • Pure Data Centres Group
  • athub (Shanghai Atrium)
  • Sify Technologies
  • STACK Infrastructure
  • Telehouse
  • Tenglong Holding Group
  • Viettel IDC
  • VNET
  • Yotta Infrastructure Solutions
  • YTL Data Center Holdings
New Entrants
  • Ada Infrastructure
  • BRIGHT RAY
  • BW Digital
  • CloudHQ
  • CyrusOne
  • Datagrid
  • Digital Halo
  • Doma Infrastructure Group
  • DAMAC Digital
  • Epoch Digital
  • Evolution Data Centres
  • FutureData
  • Gaw Capital
  • GreenSquareDC
  • Infracrowd Capital
  • K2 Data Centres
  • Megawide Construction Corporation
  • Open DC
  • Regal Orion
  • SC Zeus Data Centers
  • SEAX Global
  • TPG Angelo Gordon
  • Trifalga
  • YCO Cloud
  • Yondr
SEGMENTATION & FORECAST

Segmentation by Colocation Type
  • Retail Colocation
  • Wholesale Colocation
Segmentation by Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction
Segmentation by Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • PDUs
  • Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
Segmentation by Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
Segmentation by Cooling Techniques
  • Air-based Cooling
  • Liquid-based Cooling
Segmentation by General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM
Segmentation by Tier Standard
  • Tier I & II
  • Tier III
  • Tier IV
Segmentation by 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
KEY QUESTIONS ANSWERED:

1. How big is the APAC data center colocation market?

2. What is the growth rate of the APAC data center colocation market?

3. What is the estimated market size in terms of area in the APAC data center colocation market by 2030?

4. How many MW of power capacity is expected to reach the APAC data center colocation market by 2030?

5. What are the key trends in the APAC data center colocation market?

Table of Contents

337 Pages
1. ABOUT ARIZTON
2. ABOUT OUR DATA CENTER CAPABILITIES
3. WHAT’S INCLUDED
4. SEGMENTS INCLUDED
5. RESEARCH METHODOLOGY
6. MARKET AT A GLANCE
7. PREMIUM INSIGHTS
8. INTRODUCTION
9. APAC DATA CENTER COLOCATION MARKET LANDSCAPE
10. APAC DATA CENTER COLOCATION MARKET VENDOR ANALYSIS
11. APAC DATA CENTER COLOCATION MARKET OVERVIEW
12. DATA CENTER FINANCING
13. GREEN DATA CENTER FINANCING
14. IMPACT OF TARIFF ON US DATA CENTER MARKET
15. INVESTMENT OPPORTUNITIES
15.1. INVESTMENT: MARKET SIZE & FORECAST
15.2. AREA: MARKET SIZE & FORECAST
15.3. POWER CAPACITY: MARKET SIZE & FORECAST
15.4. COLOCATION REVENUE: MARKET SIZE & FORECAST
16. MARKET DYNAMICS
16.1. MARKET OPPORTUNITIES & TRENDS
16.2. MARKET GROWTH ENABLERS
16.3. MARKET RESTRAINTS
16.4. SITE SELECTION CRITERIA
17. INFRASTRUCTURE SEGMENTATION
18. MARKET SEGMENTATION
18.1. COLOCATION SERVICE
18.2. ELECTRICAL INFRASTRUCTURE
18.3. MECHANICAL INFRASTRUCTURE
18.4. COOLING SYSTEMS
18.5. COOLING TECHNIQUES
18.6. GENERAL CONSTRUCTION
19. TIER STANDARDS SEGMENTATION
20. GEOGRAPHY SEGMENTATION
21. MARKET BY GEOGRAPHY
22. CHINA
22.1. MARKET BY INVESTMENT
22.2. MARKET BY AREA
22.3. MARKET BY POWER CAPACITY
22.4. COLOCATION REVENUE
22.5. RETAIL VS WHOLESALE COLOCATION PRICING
22.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
22.7. LIST OF UPCOMING DATA CENTER PROJECTS IN CHINA
23. HONG KONG
23.1. MARKET BY INVESTMENT
23.2. MARKET BY AREA
23.3. MARKET BY POWER CAPACITY
23.4. COLOCATION REVENUE
23.5. RETAIL VS WHOLESALE COLOCATION PRICING
23.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
23.7. LIST OF UPCOMING DATA CENTER PROJECTS IN HONG KONG
24. AUSTRALIA
24.1. MARKET BY INVESTMENT
24.2. MARKET BY AREA
24.3. MARKET BY POWER CAPACITY
24.4. COLOCATION REVENUE
24.5. RETAIL VS WHOLESALE COLOCATION PRICING
24.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
24.7. LIST OF UPCOMING DATA CENTER PROJECTS IN AUSTRALIA
25. NEW ZEALAND
25.1. MARKET BY INVESTMENT
25.2. MARKET BY AREA
25.3. MARKET BY POWER CAPACITY
25.4. COLOCATION REVENUE
25.5. RETAIL VS WHOLESALE COLOCATION PRICING
25.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
25.7. LIST OF UPCOMING DATA CENTER PROJECTS IN NEW ZEALAND
26. INDIA
26.1. MARKET BY INVESTMENT
26.2. MARKET BY AREA
26.3. MARKET BY POWER CAPACITY
26.4. COLOCATION REVENUE
26.5. RETAIL VS WHOLESALE COLOCATION PRICING
26.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
26.7. LIST OF UPCOMING DATA CENTER PROJECTS IN INDIA
27. JAPAN
27.1. MARKET BY INVESTMENT
27.2. MARKET BY AREA
27.3. MARKET BY POWER CAPACITY
27.4. COLOCATION REVENUE
27.5. RETAIL VS WHOLESALE COLOCATION PRICING
27.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
27.7. LIST OF UPCOMING DATA CENTER PROJECTS IN JAPAN
28. SOUTH KOREA
28.1. MARKET BY INVESTMENT
28.2. MARKET BY AREA
28.3. MARKET BY POWER CAPACITY
28.4. COLOCTION REVENUE
28.5. RETAIL VS WHOLESALE COLOCATION PRICING
28.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
28.7. LIST OF UPCOMING DATA CENTER PROJECTS IN SOUTH KOREA
29. TAIWAN
29.1. MARKET BY INVESTMENT
29.2. MARKET BY AREA
29.3. MARKET BY POWER CAPACITY
29.4. COLOCATION REVENUE
29.5. RETAIL VS WHOLESALE COLOCATION PRICING
29.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
29.7. LIST OF UPCOMING DATA CENTER PROJECTS IN TAIWAN
30. REST OF APAC
30.1. MARKET BY INVESTMENT
30.2. MARKET BY AREA
30.3. MARKET BY POWER CAPACITY
30.4. COLOCATION REVENUE
30.5. KEY SUPPORT INFRASTRUCTURE ADOPTION
31. SOUTHEAST ASIA
32. SINGAPORE
32.1. MARKET BY INVESTMENT
32.2. MARKET BY AREA
32.3. MARKET BY POWER CAPACITY
32.4. COLOCATION REVENUE
32.5. RETAIL VS WHOLESALE COLOCATION PRICING
32.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
32.7. LIST OF UPCOMING DATA CENTER PROJECTS IN SINGAPORE
33. MALAYSIA
33.1. MARKET BY INVESTMENT
33.2. MARKET BY AREA
33.3. MARKET BY POWER CAPACITY
33.4. COLOCATION REVENUE
33.5. RETAIL VS WHOLESALE COLOCATION PRICING
33.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
33.7. LIST OF UPCOMING DATA CENTER PROJECTS IN MALAYSIA
34. THAILAND
34.1. MARKET BY INVESTMENT
34.2. MARKET BY AREA
34.3. MARKET BY POWER CAPACITY
34.4. COLOCATION REVENUE
34.5. RETAIL VS WHOLESALE COLOCATION PRICING
34.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
34.7. LIST OF UPCOMING DATA CENTER PROJECTS IN THAILAND
35. PHILIPPINES
35.1. MARKET BY INVESTMENT
35.2. MARKET BY AREA
35.3. MARKET BY POWER CAPACITY
35.4. COLOCATION REVENUE
35.5. RETAIL VS WHOLESALE COLOCATION PRICING
35.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
35.7. LIST OF UPCOMING DATA CENTER PROJECTS IN PHILIPPINES
36. VIETNAM
36.1. MARKET BY INVESTMENT
36.2. MARKET BY AREA
36.3. MARKET BY POWER CAPACITY
36.4. COLOCATION REVENUE
36.5. RETAIL VS WHOLESALE COLOCATION PRICING
36.6. KEY SUPPORT INFRASTRUCTURE ADOPTION
36.7. LIST OF UPCOMING DATA CENTER PROJECTS IN VIETNAM
37. REST OF SOUTHEAST ASIA
37.1. MARKET BY INVESTMENT
37.2. MARKET BY AREA
37.3. MARKET BY POWER CAPACITY
37.4. COLOCATION REVENUE
37.5. KEY SUPPORT INFRASTRUCTURE ADOPTION
38. COMPETITIVE LANDSCAPE
38.1. MARKET SHARE BY COLOCATION INVESTMENT
38.2. MARKET SHARE BY COLOCATION AREA
38.3. MARKET SHARE BY COLOCATION POWER CAPACITY
38.4. MARKET SHARE BY COLOCATION REVENUE
39. MARKET PARTICIPANTS
39.1. PROMINENT COLOCATION OPERATORS
39.2. OTHER PROMINENT COLOCATION OPERATORS
39.3. NEW ENTRANTS
40. QUANTITATIVE SUMMARY
41. APPENDIX
41.1. ABBREVIATIONS
41.2. DEFINITIONS
41.3. SEGMENTAL COVERAGE

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