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APAC Data Center Server Market Size (2024 - 2029)

The Asia-Pacific data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and substantial investments by domestic players. This expansion is reflected in the region's market size, which is poised for substantial growth over the forecast period. The construction of data centers is expected to surge, with a notable increase in IT load capacity, raised floor area, and the number of racks installed, particularly in India. Additionally, the development of submarine cable systems, such as the Southeast Asia-Japan Cable 2, is set to enhance connectivity across the region, further supporting the market's expansion.

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Market Size of APAC Data Center Server Industry

APAC Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 44.29 Billion
Market Size (2030) USD 98.76 Billion
CAGR (2024 - 2030) 14.30 %
Market Concentration Medium

Major Players

APAC Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

APAC Data Center Server Market Analysis

The APAC Data Center Server Market size is estimated at USD 44.29 billion in 2024, and is expected to reach USD 98.76 billion by 2030, growing at a CAGR of 14.30% during the forecast period (2024-2030).

The increasing demand for cloud computing among small and medium-sized enterprises (SMEs), government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the region.

  • The upcoming IT load capacity of the Asia-Pacific data center construction market is expected to reach 23K MW by 2029.
  • The region's construction of raised floor area is expected to increase 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 Kilometers with a landing point in China, Taiwan, Japan, South Korea, Thailand, and Vietnam.

APAC Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The Asia-Pacific data center server market is segmented by form factor (blade server, rack server, and tower server), by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users), and by geography (Indonesia, India, China, Australia, South Korea, Philippines, Thailand, Singapore, New Zealand, Japan, Malaysia, Vietnam, Hong Kong, Taiwan, and Rest of Asia Pacific). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
***Geography
Indonesia
India
China
Australia
South Korea
Philippines
Thailand
Singapore
New Zealand
Japan
Malaysia
Vietnam
Hong Kong
Taiwan
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APAC Data Center Server Market Size Summary

The Asia-Pacific data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises, and supportive government regulations for local data security. The region is witnessing substantial investments from domestic players, which are further propelling the market expansion. The construction of data centers is on the rise, with a notable increase in IT load capacity, raised floor area, and the number of racks expected in the coming years. The proliferation of submarine cable systems connecting the region is also enhancing connectivity, supporting the growing need for data centers. The adoption of cloud-based services is fostering the expansion of hyperscale colocation services, leading to a heightened demand for data center space and servers.

Countries like India, Vietnam, and Thailand are at the forefront of this growth, with India emerging as a major player in the data center sector. The Indian government is actively revising data center policies to encourage infrastructural growth, offering tax subsidies and incentives to attract investments. The rapid spread of the internet and smartphones in India is expected to drive demand for data center servers. Major players in the market, such as Dell Inc., Hewlett Packard Enterprise, Fujitsu, and Lenovo Group Limited, are focusing on expanding their regional customer base and enhancing their server offerings with next-generation technologies. The market is moderately consolidated, with these key players maintaining a significant share and continuously innovating to meet the evolving demands of the Asia-Pacific region.

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APAC Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Adoption of cloud computing services

      2. 1.2.2 Large-scale commercialization of 5G networks

    3. 1.3 Market Restraints

      1. 1.3.1 Rising CapEx for data center construction

      2. 1.3.2 Cybersecurity Threats and Ransomware attacks

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

    3. 2.3 ***Geography

      1. 2.3.1 Indonesia

      2. 2.3.2 India

      3. 2.3.3 China

      4. 2.3.4 Australia

      5. 2.3.5 South Korea

      6. 2.3.6 Philippines

      7. 2.3.7 Thailand

      8. 2.3.8 Singapore

      9. 2.3.9 New Zealand

      10. 2.3.10 Japan

      11. 2.3.11 Malaysia

      12. 2.3.12 Vietnam

      13. 2.3.13 Hong Kong

      14. 2.3.14 Taiwan

APAC Data Center Server Market Size FAQs

The APAC Data Center Server Market size is expected to reach USD 44.29 billion in 2024 and grow at a CAGR of 14.30% to reach USD 98.76 billion by 2030.

In 2024, the APAC Data Center Server Market size is expected to reach USD 44.29 billion.

APAC Data Center Server Market Report Snapshots

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