Asia-Pacific Data Center Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.80 Billion |
| Market Size (2029) | USD 12.40 Billion |
| CAGR (2024 - 2029) | 9.70 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Data Center Power Market Analysis
The Asia-Pacific Data Center Power Market size is estimated at USD 7.80 billion in 2024, and is expected to reach USD 12.40 billion by 2029, growing at a CAGR of 9.70% during the forecast period (2024-2029).
Asia-Pacific is experiencing a surge in demand for edge data centers, fueled by the rising deployments of 5G technology. Increasing data traffic and data center constructions and servers are laying the demand for power solutions. Operators are exploring the adoption of new-age generator sets that run on hydrotreated vegetable oil (HVO), natural gas, and other eco-friendly alternatives. These factors are expected to augment the market studied.
- The upcoming IT load capacity of the Asia-Pacific data center power market is expected to reach 23 K MW by 2029.
- The region's construction of raised floor area is expected to increase by 74.5 million sq. ft by 2029.
- The region's total number of racks to be installed is expected to reach 4.2 million units by 2029. India is expected to house the maximum number of racks by 2029.
- There are close to 160 submarine cable systems 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 with landing points in China, Taiwan, Japan, South Korea, Thailand, and Vietnam.
Asia-Pacific Data Center Power Market Trends
IT and Telecom to Hold Significant Share
- In Asia-Pacific, the hyper-connectivity environment has reinforced the importance of telcos, which play a foundational role in supporting consumers’ and enterprises’ connectivity and collaboration needs. Across Asia-Pacific, 75% of the operators registered positive revenue growth. South Korea is second to Hong Kong in the world rankings of telecom market maturity. The country is also on the leading edge of the latest telecom developments, including around 6G. In terms of investment, in November 2022, Malaysian companies Celcom and DiGi approved the merger agreement. Once the two companies are fully merged, the new entity will be one of the largest carriers in Malaysia, with over 20 million subscribers.
- The advent of 5G in Asia-Pacific has accelerated small-cell deployment for high-speed network connectivity. Many nations have created exemption standards that can be applied when deploying new small cells. For instance, in Singapore, The Infocomm Media Development Authority (IMDA) has directed the building developers and owners to provide rooftop spaces free of charge for telecommunication equipment and telecom providers.
- Favorable policies and regulations from governments have been pivotal in attracting new investments in data centers. These policies have nurtured an environment with substantial economic and social capital that supports the data center market. The Malaysian government aims to establish a smart grid and increase the proportion of renewable energy to 31% in 2025 and 40% in 2035. This government initiative may address the concerns regarding sustainable power scalability and meet the demands of hyperscalers and providers. Such scenarios also address the demand for backup power solutions.
- In terms of innovations, as of June 2023, Vertiv unveiled a thermal management optimization service, the Vertiv EnerSav, to help data center operators achieve energy savings in Asia. Vertiv introduced the Vertiv EnerSav service to help operators identify cost-saving opportunities within their facilities by reducing energy consumption without needing a significant infrastructure overhaul. The service is available across Asia, including Southeast Asia, New Zealand, and Australia.
India to Register Significant Growth
- India is one of the fastest-growing economies in the world, and due to the combined impact of several end-user segments utilizing power systems, the country is expected to showcase major market growth.
- A majority of the current data centers are being built in Mumbai, Chennai, and Hyderabad. The central and state governments came up with the draft data center policies and incentives. Some states like Uttar Pradesh and Telangana have already rolled out the policies. As resources like power and water have become even more scarce in India, market players will strive to make cleaner and greener data centers than ever before. The cooling and supporting backup infra components are expected to evolve into more efficient and cleaner options.
- In terms of policy, the Government of India and various state governments are redrafting their data center policies to support the infrastructural growth of data centers in India through tax subsidies. Under a national policy framework for data centers, the IT ministry intends to provide up to INR 15,000 crore (USD 1.8 billion) as incentives. As per the policy, the government plans to invest up to INR 3 lakh crore (USD 35 billion) in the data center ecosystem over the next five years.
- The United Nations Intergovernmental Panel on Climate Change anticipates that India will be affected by more frequent and intense weather events in the coming decades. Site selection and climate-related disaster scenarios are becoming increasingly important planning tools for data center providers who aim to be sustainable and resilient in the face of climate impact and extreme weather events. Such factors lead to a major demand for backup power solutions.
- Since the pandemic, cloud computing has evolved as a mission-critical technology for businesses, governments, and consumers. In 2023, 65% of enterprises increased their cloud adoption compared to the previous year, and 84% of the organizations adopted SaaS. Facebook and Google are establishing their mega projects in India and taking measures to lower their carbon footprints. Overall, the data center power market is in favorable condition.
Asia-Pacific Data Center Power Industry Overview
The Asia-Pacific data center power market is slightly consolidated among the players and has gained a competitive edge in recent years. A few major players in the market include ABB Ltd, Caterpillar Inc., and Cummins Inc. These major players with a prominent market share focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
In March 2023, Vertiv Group Corp. announced that its Vertiv Geist Upgradeable Rack PDUs come with a combination outlet C13/19, simplifying purchasing, inventory management, and deployment. The universal C13/C19 outlet on Vertiv Geist Upgradeable Rack PDUs can easily accommodate new rack configurations, eliminating the need to modify or replace rPDUs as rack densities increase.
Asia-Pacific Data Center Power Market Leaders
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ABB Ltd
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Caterpillar Inc.
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Cummins Inc.
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Generac Power Systems, Inc.
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Kohler Co.
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Data Center Power Market News
- June 2023 - Legrand introduced the industry’s next generation of intelligent rack power distribution units (PDUs). The server technology PRO4X and Raritan PX4 rack PDUs are poised to redefine power management in data centers with exceptional visibility, cutting-edge hardware, and enhanced security.
- May 2023 - Eaton introduced a G3 Universal Input Rack PDU with dynamic C39 outlets, adaptable to a wide variety of plugs, input cords, and voltage requirements. According to Eaton, the G3 UPDU adds innovative features to meet the most diverse data center rack power needs by accommodating rack equipment with a broad range of power requirements.
Asia-Pacific Data Center Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
4.2.2 Increasing Demand to Reduce Operational Costs
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Power Infrastructure
5.1.1 Electrical Solution
5.1.1.1 UPS Systems
5.1.1.2 Generators
5.1.1.3 Power Distribution Solutions
5.1.1.3.1 PDU
5.1.1.3.2 Switchgear
5.1.1.3.3 Critical Power Distribution
5.1.1.3.4 Transfer Switches
5.1.1.3.5 Remote Power Panels
5.1.1.3.6 Others
5.1.2 Service
5.2 End User
5.2.1 IT and Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media and Entertainment
5.2.5 Other End Users
5.3 Geography
5.3.1 Australia
5.3.2 China
5.3.3 India
5.3.4 Indonesia
5.3.5 Philippines
5.3.6 Singapore
5.3.7 Malaysia
5.3.8 Japan
5.3.9 New Zealand
5.3.10 Thailand
5.3.11 Hong Kong
5.3.12 Taiwan
5.3.13 Vietnam
5.3.14 South Korea
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Caterpillar Inc.
6.1.3 Cummins Inc.
6.1.4 Eaton Corporation
6.1.5 Legrand Group
6.1.6 Rolls-Royce PLC
6.1.7 Vertiv Group Corp.
6.1.8 Schneider Electric SE
6.1.9 Rittal GmbH & Co. KG
6.1.10 Fujitsu Limited
6.1.11 Cisco Systems Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Asia-Pacific Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The Asia-Pacific data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service), end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users), and country (Australia, China, India, New Zealand, Indonesia, Singapore, Malaysia, Thailand, South Korea, Japan, Philippines, Vietnam, Taiwan, and Hong Kong). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Power Infrastructure | ||||||||||||
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| Service |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
| Geography | |
| Australia | |
| China | |
| India | |
| Indonesia | |
| Philippines | |
| Singapore | |
| Malaysia | |
| Japan | |
| New Zealand | |
| Thailand | |
| Hong Kong | |
| Taiwan | |
| Vietnam | |
| South Korea |
Asia-Pacific Data Center Power Market Research FAQs
How big is the Asia-Pacific Data Center Power Market?
The Asia-Pacific Data Center Power Market size is expected to reach USD 7.80 billion in 2024 and grow at a CAGR of 9.70% to reach USD 12.40 billion by 2029.
What is the current Asia-Pacific Data Center Power Market size?
In 2024, the Asia-Pacific Data Center Power Market size is expected to reach USD 7.80 billion.
Who are the key players in Asia-Pacific Data Center Power Market?
ABB Ltd, Caterpillar Inc., Cummins Inc., Generac Power Systems, Inc. and Kohler Co. are the major companies operating in the Asia-Pacific Data Center Power Market.
What years does this Asia-Pacific Data Center Power Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Data Center Power Market size was estimated at USD 7.04 billion. The report covers the Asia-Pacific Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Data Center Power Industry Report
Statistics for the 2024 Asia-Pacific Data Center Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia-Pacific Data Center Power analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
