Asia Pacific Data Center Colocation Market - Forecasts from 2025 to 2030
Description
Asia Pacific data center colocation market is anticipated to surpass US$49.360 billion by 2030, at a 11.66% CAGR from US$28.439 billion in 2025.
Colocation facilities in data centers refer to the rental of space within a professional data center, allowing companies to utilize essential infrastructure—such as power, cooling, and network connectivity—without the need for owning and maintaining their own facilities. The increasing number of new data centers, along with regulatory support and positive developments, is driving the growth of internet penetration in APAC economies. Additionally, the rising adoption of IoT technologies, coupled with booming sectors like e-commerce, virtual entertainment, and healthcare, has further enhanced market demand.The Asia Pacific region is expanding its share of the global e-commerce market, which reached US$2.9 trillion in 2022 and is projected to grow to US$6.146 trillion by 2030, accounting for over 50% of the global retail e-commerce market. The anticipated growth of the market is also supported by the expanding capabilities of 5G networks and higher levels of Industry 4.0 adoption in the coming years.
Drivers of the APAC Data Center Colocation Market:
Growing Presence of Small and Medium-Sized Enterprises (SMEs): The demand for data center colocation services is increasing among small and medium enterprises in the Asia Pacific region due to its cost-effectiveness, scalability, and flexibility. Colocation allows smaller companies to access high-quality infrastructure and services at a fraction of the cost compared to building and maintaining their own data centers. Many SMEs with limited budgets are recognizing the advantages of colocation services, which provide scalability as their infrastructure needs evolve. This solution offers enhanced reliability and security through robust security measures and advanced cooling systems.
According to Invoice Interchange statistics for 2024, Australia has approximately 2.5 million SMEs as of June 2023, spanning various industries such as retail, hospitality, construction, and professional services, making them a significant component of the business landscape.
Geographical Outlook of the APAC Data Center Colocation Market:
Exponential Growth in India: India's data center colocation market plays a crucial role in the country's digital transformation by providing reliable and scalable infrastructure for businesses across different sectors. Emerging technologies such as AI/ML, cloud computing, big data, and IoT are driving demand for colocation services that allow companies to meet growing IT requirements without incurring substantial capital expenditures. These facilities offer high-speed connectivity, low-latency networks, and strong security measures, making them essential for industries like communication, technology, e-commerce, and financial services.
The increasing investment in data centers by various companies in India is expected to further fuel market growth in the forecast period. For instance, in January 2024, Digital Realty announced the opening of its first Indian data center on a 10-acre campus capable of supporting up to 100 megawatts of critical IT load capacity in Chennai's industrial hub.In summary, the APAC data center colocation market is poised for significant growth driven by rising demand from SMEs seeking cost-effective solutions, increased investment in digital infrastructure in India, and favorable regulatory conditions across the region. As businesses continue to embrace digital transformation and advanced technologies, colocation services will play a pivotal role in supporting their growth strategies.
Reasons for buying this report:
Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub- segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.
What do businesses use our reports for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence
Report Coverage:
Historical data & forecasts from 2022 to 2030
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
The APAC Data Center Colocation Market has been segmented as following:
By Colocation Model
Retail Colocation
Wholesale Colocation
By End-User
Small Enterprises
Medium Enterprises
Large Enterprises
By Industry Vertical
Banking and Financial Services
Manufacturing
Communication and Technology
Healthcare
Energy
Government
Media and Entertainment
Others
By Country
China
Japan
India
Australia
South Korea
Others
Colocation facilities in data centers refer to the rental of space within a professional data center, allowing companies to utilize essential infrastructure—such as power, cooling, and network connectivity—without the need for owning and maintaining their own facilities. The increasing number of new data centers, along with regulatory support and positive developments, is driving the growth of internet penetration in APAC economies. Additionally, the rising adoption of IoT technologies, coupled with booming sectors like e-commerce, virtual entertainment, and healthcare, has further enhanced market demand.The Asia Pacific region is expanding its share of the global e-commerce market, which reached US$2.9 trillion in 2022 and is projected to grow to US$6.146 trillion by 2030, accounting for over 50% of the global retail e-commerce market. The anticipated growth of the market is also supported by the expanding capabilities of 5G networks and higher levels of Industry 4.0 adoption in the coming years.
Drivers of the APAC Data Center Colocation Market:
Growing Presence of Small and Medium-Sized Enterprises (SMEs): The demand for data center colocation services is increasing among small and medium enterprises in the Asia Pacific region due to its cost-effectiveness, scalability, and flexibility. Colocation allows smaller companies to access high-quality infrastructure and services at a fraction of the cost compared to building and maintaining their own data centers. Many SMEs with limited budgets are recognizing the advantages of colocation services, which provide scalability as their infrastructure needs evolve. This solution offers enhanced reliability and security through robust security measures and advanced cooling systems.
According to Invoice Interchange statistics for 2024, Australia has approximately 2.5 million SMEs as of June 2023, spanning various industries such as retail, hospitality, construction, and professional services, making them a significant component of the business landscape.
Geographical Outlook of the APAC Data Center Colocation Market:
Exponential Growth in India: India's data center colocation market plays a crucial role in the country's digital transformation by providing reliable and scalable infrastructure for businesses across different sectors. Emerging technologies such as AI/ML, cloud computing, big data, and IoT are driving demand for colocation services that allow companies to meet growing IT requirements without incurring substantial capital expenditures. These facilities offer high-speed connectivity, low-latency networks, and strong security measures, making them essential for industries like communication, technology, e-commerce, and financial services.
The increasing investment in data centers by various companies in India is expected to further fuel market growth in the forecast period. For instance, in January 2024, Digital Realty announced the opening of its first Indian data center on a 10-acre campus capable of supporting up to 100 megawatts of critical IT load capacity in Chennai's industrial hub.In summary, the APAC data center colocation market is poised for significant growth driven by rising demand from SMEs seeking cost-effective solutions, increased investment in digital infrastructure in India, and favorable regulatory conditions across the region. As businesses continue to embrace digital transformation and advanced technologies, colocation services will play a pivotal role in supporting their growth strategies.
Reasons for buying this report:
Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub- segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.
What do businesses use our reports for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence
Report Coverage:
Historical data & forecasts from 2022 to 2030
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
The APAC Data Center Colocation Market has been segmented as following:
By Colocation Model
Retail Colocation
Wholesale Colocation
By End-User
Small Enterprises
Medium Enterprises
Large Enterprises
By Industry Vertical
Banking and Financial Services
Manufacturing
Communication and Technology
Healthcare
Energy
Government
Media and Entertainment
Others
By Country
China
Japan
India
Australia
South Korea
Others
Table of Contents
102 Pages
- 1. INTRODUCTION
- 1.1. Market Overview
- 1.2. Market Definition
- 1.3. Scope of the Study
- 1.4. Market Segmentation
- 1.5. Currency
- 1.6. Assumptions
- 1.7. Base and Forecast Years Timeline
- 1.8. Key Benefits to the Stakeholder
- 2. RESEARCH METHODOLOGY
- 2.1. Research Design
- 2.2. Research Processes
- 3. EXECUTIVE SUMMARY
- 3.1. Key Findings
- 3.2. CXO Perspective
- 4. MARKET DYNAMICS
- 4.1. Market Drivers
- 4.2. Market Restraints
- 4.3. Porter’s Five Forces Analysis
- 4.3.1. Bargaining Power of Suppliers
- 4.3.2. Bargaining Power of Buyers
- 4.3.3. Threat of New Entrants
- 4.3.4. Threat of Substitutes
- 4.3.5. Competitive Rivalry in the Industry
- 4.4. Industry Value Chain Analysis
- 4.5. Analyst View
- 5. APAC DATA CENTER COLOCATION MARKET BY COLOCATION MODEL
- 5.1. Introduction
- 5.2. Retail Colocation
- 5.3. Wholesale Colocation
- 6. APAC DATA CENTER COLOCATION MARKET BY END-USER
- 6.1. Introduction
- 6.2. Small Enterprises
- 6.3. Medium Enterprises
- 6.4. Large Enterprises
- 7. APAC DATA CENTER COLOCATION MARKET BY INDUSTRY VERTICAL
- 7.1. Introduction
- 7.2. Banking and Financial Services
- 7.3. Manufacturing
- 7.4. Communication and Technology
- 7.5. Healthcare
- 7.6. Energy
- 7.7. Government
- 7.8. Media and Entertainment
- 7.9. Others
- 8. APAC DATA CENTER COLOCATION MARKET BY GEOGRAPHY
- 8.1. Introduction
- 8.2. China
- 8.3. Japan
- 8.4. India
- 8.5. Australia
- 8.6. South Korea
- 8.7. Others
- 9. COMPETITIVE ENVIRONMENT AND ANALYSIS
- 9.1. Major Players and Strategy Analysis
- 9.2. Market Share Analysis
- 9.3. Mergers, Acquisitions, Agreements, and Collaborations
- 9.4. Competitive Dashboard
- 10. COMPANY PROFILES
- 10.1. Equinix
- 10.2. Rackspace
- 10.3. Telehouse
- 10.4. Verizon
- 10.5. Colt Technology Services
- 10.6. CenturyLink
- 10.7. AirTrunk
- 10.8. Chindata Group
- 10.9. Digital Realty
- 10.10. KT Corporation
- 10.11. NEXTDC LTD
- 10.12. STT Global Data Centres India Private Limited C/o Tata Communications Ltd
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