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APAC Data Center Construction Market Size (2024 - 2029)

The Asia-Pacific data center construction market is experiencing significant growth, driven by the increasing adoption of cloud technology across various sectors such as telecom, e-commerce, and healthcare. This expansion is particularly notable in Indonesia, which is poised for rapid development due to favorable conditions and ecosystem advancements. The demand for next-generation data centers, including hyperscale facilities, is rising to meet the needs of high-power consumption and cloud computing AI. Additionally, the push for sustainable energy solutions is prompting renovations and new infrastructure projects, with countries like Taiwan leading in renewable energy initiatives. The market's growth trajectory has been further accelerated by the pandemic, which heightened the reliance on data centers due to increased internet usage and the hybrid work model.

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Market Size of APAC Data Center Construction Industry

APAC Data Center Construction Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 10.60 Billion
Market Size (2030) USD 16.70 Billion
CAGR (2024 - 2030) 7.91 %
Market Concentration Medium

Major Players

APAC Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Data Center Construction Market Analysis

The APAC Data Center Construction Market size is estimated at USD 10.60 billion in 2024, and is expected to reach USD 16.70 billion by 2030, growing at a CAGR of 7.91% during the forecast period (2024-2030).

The demand for data center services in the Asia-Pacific region is surging, driven by the rapid adoption of digital technologies, cloud computing, and the Internet of Things (IoT).

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Asia-Pacific data center market is expected to reach above 21,000 MW by 2030.

• Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 76 million sq. ft. by 2030.

• Planned Racks: The region's total number of racks to be installed is expected to reach more than 3.5 million units by 2030. India is expected to house the maximum number of racks by 2030.

• Close to 160 submarine cable systems are connecting the Asia-Pacific, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 km and has a landing point in China, Taiwan, Japan, South Korea, Thailand, and Vietnam.

• In addition, the growing adoption of sustainable energy across all regional governments is expected to drive more renovations and new infrastructure requirements in the existing and under-construction data centers. Taiwan aims to rely on renewable energy by generating 20% of its electricity through wind and solar PV promotion plans by 2025, resulting in renewable power capacity reaching over 26 GW during the forecast period.

APAC Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The Asia-Pacific data center construction market is segmented (by Infrastructure (Electrical Infrastructure (Power Distribution Solution(PDU, Transfer Switches, Switchgear, Power Panels and Components, others)), Power Back-up Solution (UPS, Generators), Service – Design and Consulting, Integration, Support and Maintenance)), (Mechanical Infrastructure (Cooling Systems (Immersion Cooling, Direct-to-Chip Cooling, Rear Door Heat Exchanger, In-Row and In-Rack Cooling)), Racks, Other Mechanical Infrastructure)), General Construction)), by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by End User (Banking, Financial Services and Insurance, IT and Telecommunications, Government and Defense, Healthcare, and Other End User), and Geography (China, India, Japan, Australia, Indonesia, and Rest of Asia-Pacific). The market sizes and forecasts are provided in USD values for all the above segments.

Market Segmentation - By Infrastructure
Market Segmentation - By Electrical Infrastructure
Power Distribution Solution
PDU: Basic & Smart - Metered & Switched solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-Voltage
Medium-Voltage
Power Panels and Components
Others
Power Back up Solutions
UPS
Generators
Service - Design & Consulting, Integration, Support & Maintenance
Market Segmentation - By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-To-Chip Cooling
Rear Door Heat Exchanger
In-Row and In-Rack Cooling
Racks
Other Mechanical Infrastructure
General Construction
Market Segmentation - By Tier Type
Tier I and II
Tier-III
Tier-IV
Market Segmentation - By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
Market Segmentation - By Country***
China
India
Japan
Australia
Indonesia
Market Segmentation - By Data Center Size
Small
Medium
Large
Massive
Mega
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APAC Data Center Construction Market Size Summary

The Asia-Pacific data center construction market is experiencing significant growth, driven by the increasing adoption of cloud technology across various sectors such as telecom, e-commerce, healthcare, and BFSI. This surge in demand is prompting the construction of new data centers, particularly in countries like Indonesia, which is poised to be a fast-growing market due to its favorable conditions and ecosystem developments. Major operators are focusing on regions like Jakarta and Batam to establish new facilities. The need for next-generation data centers, such as hyperscale facilities, is rising to meet the demands of high-power consumption and advanced cloud computing technologies. These data centers are increasingly adopting sustainable energy solutions, aligning with regional government initiatives to promote renewable energy sources. The impact of edge computing and the rollout of 5G technology are also contributing to the expansion of data center infrastructure, as they enhance data processing capabilities and reduce reliance on traditional data centers.

In China, the data center construction market is bolstered by government policies supporting the development of new clusters and computing hubs, part of the 'Eastern Data, Western Computing' initiative. This strategy aims to balance the supply and demand of computing capacity, facilitating China's digital transformation. The penetration of 5G networks is expected to drive data generation, necessitating more storage and processing space. However, construction cost inflation in countries like Singapore, Japan, and South Korea is steering more projects towards China. Hyperscale data centers are being developed in various countries, including Thailand and Malaysia, with government incentives in emerging economies like India and Indonesia further encouraging new construction activities. The market is fragmented, with key players such as AECOM, DSCO Group, and NTT Facilities leading the charge, while partnerships and expansions, like those in Indonesia and Malaysia, are creating new opportunities for data center construction vendors.

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APAC Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation - By Infrastructure

      1. 1.1.1 Market Segmentation - By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU: Basic & Smart - Metered & Switched solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-Voltage

            2. 1.1.1.1.3.2 Medium-Voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Others

        2. 1.1.1.2 Power Back up Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance

      2. 1.1.2 Market Segmentation - By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-To-Chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-Row and In-Rack Cooling

          5. 1.1.2.1.5 Racks

          6. 1.1.2.1.6 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

      4. 1.1.4

    2. 1.2 Market Segmentation - By Tier Type

      1. 1.2.1 Tier I and II

      2. 1.2.2 Tier-III

      3. 1.2.3 Tier-IV

      4. 1.2.4

    3. 1.3 Market Segmentation - By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

    4. 1.4 Market Segmentation - By Country***

      1. 1.4.1 China

      2. 1.4.2 India

      3. 1.4.3 Japan

      4. 1.4.4 Australia

      5. 1.4.5 Indonesia

    5. 1.5 Market Segmentation - By Data Center Size

      1. 1.5.1 Small

      2. 1.5.2 Medium

      3. 1.5.3 Large

      4. 1.5.4 Massive

      5. 1.5.5 Mega

      6. 1.5.6

APAC Data Center Construction Market Size FAQs

The APAC Data Center Construction Market size is expected to reach USD 10.60 billion in 2024 and grow at a CAGR of 7.91% to reach USD 16.70 billion by 2030.

In 2024, the APAC Data Center Construction Market size is expected to reach USD 10.60 billion.

APAC Data Center Construction Market Report Snapshots

Asia-pacific Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)