APAC is the fastest-growing region with increased investments from global and local colocation data center operators worldwide. With the construction of additional data centers, local colocation providers in each country also increase their presence, thus boosting the market growth.
New York, Aug. 11, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "APAC Data Center Colocation Market - Industry Outlook and Forecast 2022-2027" - https://www.reportlinker.com/p06313590/?utm_source=GNW
• In 2021, China, India, Australia, Japan, Singapore, and Hong Kong were the leading markets that witnessed colocation data center investments in the APAC. China contributed over 35% of the APAC data center colcoation market share.
• Colocation service providers are continuously involved in the adoption of renewable energy and are aiming to reduce the carbon footprint that will aid sustainable data center developments.
• Mergers & Acquisition and Joint Venture (JV) will lead to the entry of new colocation data center operators into the different countries across APAC, leading to significant investments during the forecast period.
• In APAC, the retail colocation market is valued at around USD 8.65 billion (66% share), whereas the wholesale colocation market is around USD 4.45 billion (34% share). The wholesale colocation market will witness significant growth through the increasing presence of hyperscale cloud service providers across APAC.
KEY TRENDS IN THE MARKET
Adoption of Innovative Data Center Technologies
• Intelligent monitoring is one of the technologies being adopted by data center operators in APAC. Power infrastructure maintenance demands preventing operational failure by automating data center facilities. Cooling systems also require data center operators to monitor their energy consumption.
• Regions and states with a higher cost of power will witness increased adoption of microgrids. For instance, in countries such as Japan and the Philippines, the installation of microgrids can be beneficial to data center operators.
• An increase in carbon emissions is one of the major challenges identified across APAC. To overcome the challenge, fuel cells are being installed to improve the efficiency of data centers.
• Renewable energy adoption is increasing rapidly among APAC countries. Government initiatives and data center service operators are taking significant measures to purchase and produce renewable energy to power their data centers.
• For Instance, Taiwan aims to generate 20% of its electricity through renewable energy by 2025 via wind and solar PV promotion plans. The renewable power capacity is expected to reach over 26 GW within the next five years.
• In 2022, CTRL has built a new data center facility in Hyderabad with a power capacity of 18 MW. Additionally, the company has aimed to establish 500 edge data centers in Tier 2 and Tier 3 cities across the country with a 500-acre solar plant to power its operation with renewable energy.
• Sustainability is taking center stage, and it is expected that renewable energy generation will be a key consideration for data center operators when building data centers in the APAC region.
• Electrical infrastructure adoption will grow by around 7% year-over-year (YOY) in the APAC region. In terms of power infrastructure, the generators segment was the largest contributor to the market revenue through the adoption of DRUPS systems.
• APAC data centers use both water-based and air-based cooling techniques. Data centers that depend on free-cooling techniques such as free cooling chillers and evaporative coolers to cool the facility will grow among facilities in China, Japan, Australia, New Zealand, and South Korea.
• China, Hong Kong, Singapore, India, Australia, and Japan continue to dominate growth in terms of colocation revenue. The retail colocation market dominates in the market where the wholesale colocation market is rapidly growing.
• In terms of revenue, China Telecom Corporation led the overall revenue generation investment in the APAC market with multiple data center projects in 2021.
• Equinix was followed by GDS Services with a revenue of around USD 880 million in 2021, growing at around 37% compared to 2020, mainly contributed by colocation services.
Segmentation by Colocation Service
• Retail Colocation
• Wholesale Colocation
Segmentation by Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction
Segmentation by Electrical Infrastructure
• UPS Systems
• Transfer Switches & Switchgear
• Power Distribution Units
• Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
• Cooling Systems
• Other Mechanical Infrastructure
Segmentation by Cooling Systems
• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers & Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units
Segmentation by Cooling Technique
• Air-Based Cooling Technique
• Liquid-Based Cooling Technique
Segmentation by General Construction
• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
Segmentation by Tier Standard
• Tier II
• Tier III
• Tier IV
• APAC has and will be the preferred market for cloud service and global colocation providers. The rising demand for on-demand video, mobile gaming, and online content will be a stronger force for colocation data center procurement in the region.
• China and Hong Kong, India, Singapore, Australia, Japan, and South Korea are witnessing strong growth in the use of artificial intelligence, IoT, virtual reality, online payment systems, and smart solutions to attract data center investments into the region.
• The pricing of colocation varies a lot from one country to another in the APAC region. Markets such as Singapore, Hong Kong, and Japan have the highest colocation pricing in the APAC region compared to the other markets.
• The major demand came from telecommunication and internet service providers for the region’s colocation of data center facilities.
• China led the colocation data center market in the APAC, contributing 35% of the investment, followed by Japan, Australia, and others with respect to Colocation Investment.
• In 2021, SEA countries witnessed over 30 colocation data center developments in Southeast Asia with a corresponding market investment of over USD 2 billion.
• Singapore is a mature market in Southeast Asia that accounted for around 50% of investments, followed by Indonesia, Malaysia, and Vietnam, among other countries.
• In January 2022, the Singapore government lifted the moratorium with conditions to promote data center operators to construct more sustainable data centers. Earlier, the government had initially frozen the construction of new data centers in the country will slow the growth in capacity for the next two to three years, after which capacity is expected to pick up.
Segmentation by Region
o Hong Kong
o New Zealand
o South Korea
o Rest of APAC
o Southeast Asia
• In 2021, Equinix, Digital Realty, AirTrunk Operating, Colt Data Centre Services, Keppel Data Centres, 21Vianet Group, NEC, Global Switch, GDS Services, NTT Communication, Tenglong Holdings Group, Space DC & GIC, and NEXTDC were some of the colocation data center investors in APAC.
• In terms of investment in the APAC data center colocation market, GDS Services led the market and was among the major investors in 2021, with multiple expansions and newly built projects across China. It had a market share of about 18.7% in the APAC.
• Many data center operators are investing in new facilities and expanding existing data centers as there is a huge surge in demand from customers, leading the APAC colocation market to be highly competitive.
• New entrants are investing in the construction of core and shell properties across the region. These new facilities are expected to be fully commissioned within two years of initial build-out.
• AECOM, Arup, Aurecon Group, CSF Group, DSCO Group, and PM Group are some construction contractors building data centers in the APAC region.
• The region has the presence of both global and local construction contractors, engineering, and architectural firms. The growth in the data center market will provide opportunities for local sub-contracts in construction, engineering, and architectural verticals.
Key Support Infrastructure Providers
• Schneider Electric
Other Prominent Support Infrastructure Providers
• Airedale International Air Conditioning
• Alfa Laval
• Delta Electronics
• HITEC Power Protection
• Rolls-Royce Power Systems
• Shenzhen Envicool Technology
• KOHLER (SDMO)
• Mitsubishi Electric Corporation
• Trane (Ingersoll Rand)
Key Construction Contractors
• CSF Group
• DSCO Group
• Gammon Construction
• Larsen & Toubro (L&T)
• PM Group
• Studio One Design
• NTT Facilities Group
Other Prominent Construction Contractors
• Chung Hing Engineers Group
• BYME Engineering Ltd
• DPR Construction
• Fortis Construction
• Hutchinson Builders
• Kienta Engineering
• LSK Engineering
• M+W Group
• Nakano Corporation
• Obayashi Corporation
• Powerware Systems (PWS)
• Sato Kogyo
• Sterling and Wilson (Shapoorji Pallonji Group)
• Turner & Townsend
Key Data Center Investors
• AirTrunk Operating
• Digital Realty
• GDS Services
• Global Switch
• Keppel Data Centers
• NTT Global Data Centers
• ST Telemedia Global Data Centers
• Vianet Group
Other Prominent Data Center Colocation Service Providers
• AIMS Data Centre
• Bharti Airtel
• Big Data Exchange (BDx)
• Bridge Data Centers
• Canberra Data Centers
• ChinData Group
• Colt Data Centre Services (COLT DCS)
• Iron Mountain
• LG Uplus
• Mantra Data Centers
• Pi Data Centers
• Princeton Digital Group (PDG)
• Regal Orion
• Sify Technologies
• Space DC
• Tenglong Holdings Group
• Yotta Infrastructure
• Data Center First
• Vantage Data Centers
KEY QUESTIONS ANSWERED
1. HOW BIG IS THE APAC DATA CENTER COLOCATION MARKET?
2. WHAT IS THE GROWTH RATE OF THE ASIA PACIFIC DATA CENTER COLOCATION MARKET?
3. WHO ARE THE KEY INVESTORS IN THE APAC DATA CENTER COLOCATION MARKET?
4. WHAT ARE THE GROWTH FACTORS OF THE APAC DATA CENTER COLOCATION MARKET?
5. WHAT ARE THE LATEST TRENDS IN THE APAC DATA CENTER COLOCATION MARKET?
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