APAC Data Center Construction Market to Generate Revenues of $12 Billion by 2023 | Arizton

The growing focus on digitalized economies and increasing adoption of cloud-based services in China, India, Japan, Singapore, and Australia will fuel the growth of the APAC data center construction market.

Arizton’s recent market research report on the APAC data center construction market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical infrastructure (cooling systems, rack, and other infrastructure), by tier standard (Tier 1 & 2, Tier 3, and Tier 4), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), by country (China & Hong Kong, Australia, Singapore, Japan, India, and rest of APAC), and offers detailed competitive analysis.

The APAC data center construction market is estimated to reach values of approximately $12 billion by 2023, growing at a CAGR of over 9% during 2018-2023. The growing internet population, exponential use of social media, penetration of smartphones, and increasing adoption of public cloud and hybrid cloud services is propelling the growth of the APAC data center construction market. The entry of pure-play modular data center providers such as Flexenclosure will increase investments and boost revenues in the Southeast Asian market.

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The top 3 drivers and trends attributing to the growth of the APAC data center construction market are discussed below:

Increase in Adoption of Cloud-based Services, Big Data and IoT

The growing focus on digitalized economies and increasing adoption of cloud-based services in countries such as China, India, Japan, Singapore, and Australia will fuel the growth of the APAC data center construction market. The growing popularity of IaaS services, colocation, managed services, and cloud connectivity services will transform the Southeast Asian market over the next few years.

The demand for hybrid infrastructure services is expected to grow at a CAGR of over 40% during the forecast period in the APAC market.

The demand for cloud connectivity solutions are on the rise, and various colocation providers are investing large sums in the APAC market to expand their business operations. Australia, New Zealand, China, India, Singapore, Japan, and Hong Kong are among the largest adopters of cloud-based solutions in the market. The rising demand for PaaS, IaaS, and SaaS services by both businesses and consumers will create lucrative investment opportunities for leading players in the APAC data center construction market. The construction of hyperscale and colocation facilities will transform the APAC market during the forecast period.

Growing Adoption of High-Performance Infrastructure and Rack Power Density

The significant changes in the use of IT infrastructure and the use of cloud computing, Internet of Things (IoT), and big data analytics solutions across industries will augment the growth of the APAC data center construction market. The increasing requirement for efficient infrastructure across several industry verticals such as BFSI, healthcare, government, and heavy industries will transform the APAC market. The top companies are now targeting to procure high-performance computing (HPC) systems to process complex application workloads involving machine learning and artificial intelligence (AI) across facilities in the APAC market. The increasing adoption of converged and hyper-converged solutions and virtualization will result in the increase in rack power density to an average of 8-10 kW in the APAC market during the forecast period. The development of facilities with innovative designs which can support rack density on-demand basis will propel the development of the APAC market. The deployment of new facilities with power and cooling infrastructure that can support rack density up to 40 kW and liquid immersion cooling that can support density up to 200 kW is expected to gain traction in the APAC data center construction market during the forecast period.

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APAC Data Center Construction Market 2023
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Increase in Awareness Towards Procurement of Renewable energy Sources

The growing awareness towards the procurement of renewable energy sources is attributing to the development of the APAC data center construction market. The leading colocation providers and hyperscale developers are investing in the development of green data centers in the APAC market. The increasing power consumption and the need to reduce carbon footprint is encouraging facilities services providers to purchase clean, renewable energy sources to power their existing and new facilities in the APAC market. The hyperscale developers such as Microsoft, Facebook, Apple, Google, and Amazon Web Services are investing millions of dollars in deploying green facilities across the APAC market. The increasing 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 will transform the APAC data center construction market over the next few years.

The leading vendors operating the APAC data center construction market are ABB, Eaton, Huawei, Schneider Electric, STULZ, Vertiv, AECOM, Arup, Aurecon Construction, CSF Group, DSCO Group, M+W Group, Nikom Infrasolutions, and NTT FACILITIES Group.

The complete overview of the latest market research report on APAC data center construction market by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

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