The APAC data center colocation market size by investment to cross USD 12 billion by 2026, growing at a CAGR of 5% during the forecast period.
The APAC data center colocation market is expected to grow at a CAGR of over 5% during the period 2020−2026. This report contains colocation market size by area and power capacity for the forecast period.
Key Highlights Offered in the Report:
1. The APAC data center colocation market contributed to over 30% of the global colocation market in 2020, with the China and Hong Kong market adding around 50% to the APAC market.
2. In 2020, retail colocation contributed to around 66% of the overall market demand in APAC, while wholesale colocation amounted to around 34%, with increased adoption of wholesale colocation expected in the forecast period.
3. The ongoing COVID-19 pandemic, growth in data generated, penetration of 5G, and the adoption of cloud and hybrid infrastructure services, along with significant government initiatives are major drivers for the region’s colocation uptake.
4. The major demand for colocation services in APAC during the COVID-19 pandemic came from cloud-service providers that chose to majorly host their data in colocation data centers instead of building their own data centers in the region.
5. New entrants, M&A transactions, and joint ventures by local companies with global operators in countries such as China, Japan, Thailand, Indonesia, and India among others is also spurring data center investment in the region.
6. In 2020, China’s colocation services witnessed a significant boost in capacity uptake with majority of the service providers experiencing a growth of over 20% in their service revenue due to the COVID-19 pandemic.
• Market Size & Forecast by Revenue | 2020−2026
• Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
• Market Segmentation – A detailed analysis by infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, service type, cooling technique, general construction, tier standards, and geography
• Competitive Landscape – 13 key vendors, 31 other vendors, and 4 new entrants
APAC Data Center Colocation Market – Segmentation
• The electrical infrastructure market is likely to cross over USD 5 billion by 2026. Generators are the largest contributor to the market revenue due to the increased adoption of DRUPS systems. The adoption of UPS systems has become critical for operators and designers as they account for around 30% of facility failures. Most data centers deploy dual-power feed to overcome power outages and human errors in the deployment or maintenance stage.
• Lithium-ion UPS solutions are likely to witness high adoption from colocation providers. Modular data center operators expect to procure lithium-ion UPS systems with less than 500 kW power capacity. The adoption of single-rack prefabricated data center solutions will include single-phase lithium-ion systems with a power capacity of less than 10 kVA. The adoption of DRUPS systems will continue to grow among data colocation centers in several APAC markets.
• The use of CRAC units is higher among in APAC, and most facilities use air-based cooling systems. In China & Hong Kong, several colocation facilities adopt a combination of air and water-based cooling techniques for cooling purposes. Data centers in India mainly use air-based, and few facilities operate using water-based cooling systems.
APAC Data Center Colocation Market by Infrastructure
• General Construction
APAC Data Center Colocation Market by Electrical Infrastructure
• UPS Systems
• Transfer Switches and Switchgears
• Other Electrical Infrastructures
APAC Data Center Colocation Market by Mechanical Infrastructure
• Cooling Systems
• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Dry Coolers, & Condensers
• Economizers & Evaporative Coolers
• Other Cooling Units
• Others Mechanical Infrastructure
APAC Data Center Colocation Market by Service Type
APAC Data Center Colocation Market by Cooling Technique
• Air-based Cooling Technique
• Water-based Cooling Technique
APAC Data Center Colocation Market by General Construction
• Core and Shell Development
• Installation and Commissioning Services
• Engineering and Building Designs
• Physical Security
APAC Data Center Colocation Market by Tier Standards
• Tier I & II
• Tier III
• Tier IV
APAC Data Center Colocation Market – Dynamics
The high-power consumption in data centers and the need to decrease carbon footprint have prompted many data center colocation service providers to purchase clean, renewable energy sources to power their current and new facilities across APAC. There is a high interest in adopting renewable power sources among global and local data center colocation suppliers in the region such as Equinix and Digital Realty. In addition, many small data center operators are installing solar panels on the rooftops of their facilities. The use of renewable energy is likely to increase the focus on the design of data centers, redefine the installation and commissioning process, and increase physical security requirements in case of on-site power generation. Data center colocation investments in APAC are growing significantly, and the importance of procuring renewable energy is very high. Moreover, the power consumption by colocation facilities in APAC is growing due to the development of hyperscale facilities with a power capacity of 15 MW and more. As a result, the awareness for procuring renewable energy for data center operations is likely to grow among developers during the forecast period.
Key Drivers and Trends fueling Market Growth:
• Growing Rack Power Density
• Growing Edge Data Center Demand
• COVID-19 on Colocation Data Centers
• Increased Investment in Hyperscale Data Centers
APAC Data Center Colocation Market – Geography
China & Hong Kong are the prominent markets for data center operations in APAC. In China, data center investment is led by the internet, local data center investors, and telecommunication service providers such as China Unicom, China Telecom, Tencent, and China Mobile. Major investments are also being led by colocation service providers such as GDS Service, Neo Telemedia, China Unicom, Princeton Digital Group, and Chayora. China was the first country to announce the emergence of COVID-19. The country was worst hit due to the pandemic during Q1 2020. The strict implication of lockdown across the country resulted in delays in the construction of data center facilities. Data centers are regarded as the backbone that supported internet traffic, maintained data security, and offered software for business. During the pandemic, sectors such as healthcare, education, e-commerce, telecommunication, and hospitality have migrated their resources from on-premise to cloud.
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APAC Data Center Colocation Market by Geography
• China & Hong Kong
• Australia & New Zealand
• Rest of APAC
• Southeast Asia
o Other Southeast Asian Countries
• 21Vianet Group
• China Telecom
• Digital Realty
• GDS Services
• Global Switch
• KDDI Corporation
• Keppel Data Centres
• NTT Global Data Centers
• Shanghai Atrium (AtHub)
• ST Telemedia Global Data Centres
• SUNeVision (iAdvantage)
Other Prominent Data Center Colocation Service Providers
• AirTrunk Operating
• AT TOKYO
• BDx (Big Data Exchange)
• Bridge Data Centres
• Canberra Data Centres
• China Mobile
• China Unicom
• Chunghwa Telecom
• Colt Data Centre Services (COLT DCS)
• CTRLS Datacenters
• Internet Initiative Japan (IIJ)
• Iron Mountain (IO)
• Internet Thailand Public Company (INET)
• Katalyst Data Management
• KT Corporation (Korea Telecom)
• Neo Telemedia
• PCCW Solutions
• PLDT Enterprise
• Pi Data Centers
• Princeton Digital Group (PDG)
• Telekomunikasi Indonesia
• Regal Orion
• Sify Technologies
• Beijing Sinnet Technology
• Space DC
• Tenglong Holdings Group (Tamron)
• Yotta Infrastructure (Hiranandani Group)
• Digital Edge Ventures
• Mantra Data Centers
• Stratus DC Management
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