Market Size of Asia-Pacific Data Center Power Industry
| 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 |
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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 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 Size Summary
The Asia-Pacific data center power market is poised for significant growth, driven by the increasing demand for edge data centers and the deployment of 5G technology. This surge in demand is further fueled by the rising data traffic and the construction of new data centers and servers, which necessitate advanced power solutions. Operators are increasingly adopting eco-friendly alternatives such as hydrotreated vegetable oil and natural gas for their generator sets. The region's hyper-connectivity environment, supported by robust telecommunications infrastructure, is crucial in meeting the connectivity needs of consumers and enterprises. Favorable government policies and regulations across Asia-Pacific are attracting investments in data centers, creating a conducive environment for market expansion. Innovations in power management, such as Vertiv's EnerSav service, are helping data center operators achieve energy savings and cost efficiencies.
India stands out as a rapidly growing market within the region, with significant developments in cities like Mumbai, Chennai, and Hyderabad. The Indian government's initiatives, including tax subsidies and investments in the data center ecosystem, are fostering infrastructural growth and encouraging the establishment of cleaner and greener data centers. The increasing adoption of cloud computing and the presence of major tech companies like Facebook and Google are further propelling market growth. The competitive landscape is slightly consolidated, with major players like ABB Ltd, Caterpillar Inc., and Cummins Inc. focusing on expanding their market share through strategic collaborations. Recent advancements in power distribution units and rack configurations are enhancing power management capabilities in data centers, supporting the market's upward trajectory.
Asia-Pacific Data Center Power Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
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1.2.2 Increasing Demand to Reduce Operational Costs
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1.3 Market Restraints
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1.3.1 High Cost of Installation and Maintenance
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Power Infrastructure
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2.1.1 Electrical Solution
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2.1.1.1 UPS Systems
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2.1.1.2 Generators
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2.1.1.3 Power Distribution Solutions
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2.1.1.3.1 PDU
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2.1.1.3.2 Switchgear
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2.1.1.3.3 Critical Power Distribution
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2.1.1.3.4 Transfer Switches
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2.1.1.3.5 Remote Power Panels
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2.1.1.3.6 Others
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2.1.2 Service
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2.2 End User
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2.2.1 IT and Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media and Entertainment
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2.2.5 Other End Users
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2.3 Geography
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2.3.1 Australia
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2.3.2 China
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2.3.3 India
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2.3.4 Indonesia
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2.3.5 Philippines
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2.3.6 Singapore
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2.3.7 Malaysia
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2.3.8 Japan
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2.3.9 New Zealand
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2.3.10 Thailand
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2.3.11 Hong Kong
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2.3.12 Taiwan
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2.3.13 Vietnam
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2.3.14 South Korea
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Asia-Pacific Data Center Power Market Size 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.
