APAC Hyperscale Data Center Market - Industry Outlook & Forecast 2023-2028

APAC Hyperscale Data Center Market - Industry Outlook & Forecast 2023-2028

The APAC hyperscale data center market is expected to grow at a CAGR of 6.30% from 2022 to 2028.

KEY HIGHLIGHTS

• APAC hyperscale data center market is among the majorly growing markets across the globe, led by factors such as governments across countries supporting data centers, development of multiple industrial zones, rapid growth in submarine cable connectivity, significant investments from cloud service providers, entry of global colocation operators in the region in joint ventures and other factors.
• China and India are the top two countries in the APAC region. Both countries account for over 65% of the APAC hyperscale data center market share.
• Hyperscale data center developers are opting for newer and upgraded IT infrastructure to develop facilities as it will give higher storage capability in limited space with an increased lifespan of IT equipment.
• Recently AirTrunk announced its new data center in Malaysia, JHB1. It will be a 150+MW facility, with solar power panels installed on the roof with a 5MW capacity. Also, in Japan, the company is building its second facility with a power capacity of 110 MW.

KEY TRENDS

• Digitalization has been growing as a major agenda by governments across all countries, such as Malaysia, Thailand, India, Australia, Japan, South Korea, China, New Zealand, and others. Companies are rapidly shifting from enterprise to cloud region, leading to increased demand in data center development.
• Several Governments are announcing their digital strategies to strengthen the digital growth of respective markets. For instance, the Government of Australia has launched its Digital Economy Strategy 2022 Update with the aim for the development of the digital economy of Australia by 2030.
• Increasing support from the government in the form of tax incentives, land availability in the form of new special economic zones, free trade zones, etc., has attracted more investment from hyperscale developers in the market. For example, Uttar Pradesh in India offers tax incentives and land at lower prices to attract data center investments.

SEGMENTATION ANALYSIS

• Hyperscale operators are also increasing their presence with investment in cloud regions. Due to the entry of international players, complex construction is needed, bringing global construction players to APAC and increasing business for local subcontractors. For instance, Meta is developing a vertical data center in the region.
• The APAC hyperscale data center market has strong growth potential for lithium-ion and nickel-zinc batteries for UPS systems in the electrical infrastructure segment. Operators can also adopt new-age generator sets that run on fuel types such as hydrotreated vegetable oil (HVO), natural gas, etc.
• The market has adopted air- and water-based cooling solutions for cooling infrastructure. Especially in Southeast Asia, operators are more tilted towards adopting water-based cooling solutions due to the tropical climate.

The report includes the investment in the following areas:

Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

IT Infrastructure

• Server
• Storage
• Network

Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure

Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Cooling System

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units

General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM/BMS

GEOGRAPHICAL ANALYSIS

• China has been a dominating market in the APAC region, followed by India, Australia, Japan, India, Singapore, and Hong Kong, among the other major countries for data center development in the APAC hyperscale data center market.
• South Korea, Taiwan, Indonesia, and Malaysia are emerging markets in the region witnessing significant growth, especially due to digitalization and growth in connectivity. Countries such as Indonesia and Malaysia have started witnessing new investments and are expected to grow as unique preferences from operators.

Geography

• APAC
• China
• India
• Australia
• Singapore
• Japan
• South Korea
• Hong Kong
• Indonesia
• Malaysia
• New Zealand
• Thailand
• Philippines

KEY MARKET PARTICIPANTS

• As most APAC regions countries are on the Pacific Ring of Fire, construction operators need to focus more on the stability of the structure, which is less prone to earthquakes, tsunamis, and other natural threats.
• Lack of land availability will require creativity from construction companies to develop hyperscale facilities to house the maximum number of racks in minimum space. Also, due to a large number of investments, demand for local and global construction contractors will increase in the near future.
• Increasing investment in the APAC hyperscale data center market will also bring investment in power infrastructure and related solutions. Development of renewable energy plants across the region to supply clean power to hyperscale facilities will need a newer type of switches and switchgears which could withstand power fluctuation from these sources.

Major Vendors

Prominent IT Infrastructure Vendors

• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• Dell Technologies
• Extreme Networks
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• Huawei
• IBM
• Inspur Group
• Inventec
• Juniper Networks
• Lenovo
• NEC
• NetApp
• Oracle
• Pure Storage
• Quanta Cloud Technology
• Supermicro
• Wistron (Wiwynn)

Prominent Support Infrastructure Vendors

• ABB
• Alpha Laval
• Airedale International Air Conditioning
• Asetek
• Bosch Security and Safety Systems (Robert Bosch)
• Caterpillar
• Condair Group
• Cummins
• Delta Group
• Eaton
• Green Revolution Cooling
• HITEC Power Protection
• KOHLER
• Legrand
• Nlyte Software
• Nortek Air Solutions manufactures
• Mitsubishi Electric
• Rolls-Royce Power Systems
• Piller Power Systems
• Rittal
• Schneider Electric
• STULZ
• Trane (Ingersoll Rand)
• Vertiv Group

Prominent Construction Contractors

• AECOM
• ARUP
• Aurecon
• AWP Architects
• BYME Engineering
• Chung Hing Engineers
• Corgan
• CSF Group
• CTCI
• Cundall
• DPR Construction
• DSCO group
• Faithful+Gould
• Fortis Construction
• Gammon Construction
• Hutchinson Builders
• Hyundai E&C
• ISG
• Kienta Engineering Construction
• Linesight
• Larsen & Toubro Construction (L&T)
• LSK Engineering
• M+W Group
• Nakano
• NTT FACILITIES
• Obayashi
• PWS
• PM Group
• Red (Engie Impact)
• Rider Levett Bucknall
• Sterling and Wilson
• Studio One Design
• Turner & Townsend

Prominent Data Center Investors

• AirTrunk
• Amazon Web Services (AWS)
• Alibaba
• Apple
• BDx (Big Data Exchange)
• CDC Data Centres
• Chayora
• Chindata Group
• Colt Data Centre Services
• CtrlS Datacenters
• Digital Realty
• Equinix
• Facebook (Meta)
• GDS Services
• Global Switch
• Google
• Iron Mountain
• Keppel Data Centres
• LG Uplus
• Microsoft
• Nxtra by Airtel
• NEXTDC
• NTT Global Data Centers
• OneAsia Network
• Princeton Digital Group (PDG)
• Regal Orion
• Shanghai Atrium (AtHub)
• SpaceDC
• SUNeVison Holdings (iAdvantage)
• Sify Technologies
• ST Telemedia Global Data Centres
• Tenglong Holdings Group (Tamron)
• VNET
• Vantage Data Centers
• Viettel IDC
• Yotta Infrastructure Solutions (Hiranandani Group)

New Entrants

• Adaniconnex
• Data Center First
• EdgeConneX
• Evolution Data Centres
• GreenSquareDC
• Hickory
• MettaDC
• Pure Data Centres
• Stockland
• Yondr

KEY QUESTIONS ANSWERED:

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

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

3. What factors drive the APAC hyperscale data center market growth?

4. What is the estimated market size in terms of area in the APAC hyperscale data center market by 2028?

5. Who are the new entrants in the APAC hyperscale data center market?

6. How much MW of power capacity is expected to reach the APAC hyperscale data center market by 2028?