DUBLIN–(BUSINESS WIRE)–The “APAC Data Center Construction Market – Industry Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s offering.
The APAC data center construction market is expected reach a value of $24.17 billion by 2028 from $15.17 billion in 2022, growing at a CAGR of 8.07% from 2022 to 2028
The region’s market is among the majorly growing markets across the globe, led by factors such as governments across countries supporting data centers, development of multiple industrial zones, rapid growth in submarine cable connectivity, significant investments from cloud service providers, entry of global colocation operators in the region in joint ventures and other factors.
The growing potential of the market has led data center operators to show interest in some other emerging markets in the region, such as the Philippines, Vietnam, New Zealand, and others.
Data center operators in the region are also participating in the government’s efforts for sustainable energy adoption by using renewable energy, signing power purchase agreements, or setting targets for carbon-free operations. For instance, in August 2022, Microsoft announced a partnership with Ecotricity to power its data center region in New Zealand with 100% renewable energy.
KEY HIGHLIGHTS
The deployment of 5G service and the growing demand for connectivity in new locations and tier 1 and tier 2 cities across multiple countries has significantly attracted investments from edge data center operators. For instance, edge operators such as EdgeConneX, Digital Edge, Leading Edge Data Centres, and Edge Centres are actively investing in establishing multiple edge data centers across countries such as Indonesia, Australia, Malaysia, Philippines, Thailand, India, Vietnam, Thailand, and others.
The region has witnessed a growing interest by governments and operators in renewable energy. Almost all governments across all countries have taken up initiatives to promote the adoption of renewable energy sources. For instance, Taiwan aims to generate 20% of its electricity through renewable energy by 2025 via wind and solar PV promotion plans. Renewable power capacity is expected to reach over 26 GW within the next five years in Taiwan.
The APAC data center construction market has been growing significantly in terms of connectivity owing to the deployment of several upcoming submarine cables such as Asia Link Cable, SEA-H2X, Asia Connect Cable-1, Hawaiki Nui, 2Africa, and others.
KEY TRENDS
Growing Digitalization in the Region
Digitalization has been growing as a major agenda by governments across all countries, such as Malaysia, Thailand, India, Australia, Japan, South Korea, China, New Zealand, and others. Several Governments are announcing their digital strategies to strengthen the digital growth of respective markets. For instance, the Government of Australia has launched its Digital Economy Strategy 2022 Update with the aim for the development of the digital economy of Australia by 2030.
Growing Mergers & Acquisitions and Joint Ventures
The significant growth potential and revenue-generating opportunities in the APAC data center construction market are prompting operators to continuously invest in merger & acquisition deals and sign joint ventures for data center projects. Several global organizations are entering the market through joint ventures. For instance, STACK Infrastructure entered the South Korean market in a joint venture with ESR Cayman to develop a data center.
VENDOR LANDSCAPE
The APAC data center construction market has the presence of several global and local construction contractors.
The APAC data center construction market, in terms of support infrastructure vendors, has several global vendors.
The market has been growing with a strong presence of several local and global colocation and cloud operators such as AirTrunk, Digital Realty, Equinix, GDS Services, Keppel Data Centres, NTT Global Data Centers, NEXTDC, BDx, Chayora, Chindata Group, Princeton Digital Group, SpaceDC, and others.
The growing opportunities and demand in the industry have also attracted several new entrants, including AdaniConneX, Evolution Data Centres, Data Center First, MettaDC, Hickory, Vantage Data Centers, YCO Cloud, and Yondr.
Initiatives such as Open Compute Project are expected to bring several new cooling techniques and technologies to the market, thereby creating more competition among vendors. Operators also look for vendors providing systems with real-time monitoring and management solutions.
Market Dynamics
Market Opportunities & Trends
- Increased Digitalization
- Edge Data Center Deployment Fueled by 5G Investments
- Adoption of Artificial Intelligence
- Adoption of Big Data & Internet of Things
Market Growth Enablers
- Rise in M&As & Jvs
- Incentives for Data Center Construction
- Growth in Adoption of Renewable Energy
- Increased Submarine Cable & Inland Connectivity
Market Restraints
- Data Center Security Challenges
- Lack of Skilled Data Center Professionals
- Data Center Power & Network Outage Challenges
Data Center Design Certifications
- Uptime Institute Tier Standards
- Leed Certification
- Tia 942 Certification
Major Vendors
Key Construction Contractors
- AECOM
- Arup
- Aurecon Group
- CSF Group
- DSCO Group
- Gammon Construction
- Larsen & Toubro (L&T)
- NTT Facilities
- PM Group
- Studio One Design
Other Prominent Construction Contractors
- AWP Architects
- BYME Engineering
- Chung Hing Engineers Group
- Corgan
- CTCI
- DPR Construction
- Faithful+Gould
- Fortis Construction
- Hutchinson Builders
- ISG
- Kienta Engineering Construction
- Linesight
- LSK Engineering
- M+W Group
- Nakano Corporation
- Obayashi Corporation
- Powerware Systems (PWS)
- Sato Kogyo
- Sterling and Wilson
- Red Engineering
- Rider Levett Bucknall
- Turner & Townsend
Prominent Support Infrastructure Vendors
- ABB
- Caterpillar
- Cummins
- Eaton
- Rittal
- Schneider Electric
- STULZ
- Vertiv
Other Prominent Support Infrastructure Vendors
- Airedale
- Alfa Laval
- Canovate
- Cyber Power Systems
- Delta Electronics
- EAE
- Fuji Electric
- Green Revolution Cooling (GRC)
- HITEC Power Protection
- KOHLER Power
- Legrand
- Mitsubishi Electric
- Narada
- Piller Power Systems
- Rolls-Royce
- Shenzhen Envicool Technology
- Siemens
- Socomec
- Trane
Prominent Data Center Investors
- AirTrunk
- Amazon Web Services (AWS)
- Digital Realty
- Equinix
- GDS Services
- Keppel Data Centres
- NTT Global Data Centers
- NEXTDC
- ST Telemedia Global Data Centres
Other Prominent Data Center Investors
- Bridge Data Centres
- Big Data Exchange (BDx)
- CDC Data Centres
- Chayora
- Chindata Group
- Colt Data Centre Services
- CtrlS Datacenters
- Digital Edge DC
- Facebook (Meta)
- Huawei Technologies
- Iron Mountain
- LG Uplus
- Microsoft
- Nxtra by Airtel
- OneAsia Network
- Open DC
- Pi Datacenters
- Princeton Digital Group (PDG)
- Regal Orion
- SpaceDC
- SUNeVison Holdings (iAdvantage)
- Sify Technologies
- Tenglong Holding Group
- Viettel IDC
- VNET
- Yotta Infrastructure Solutions
New Entrants
- AdaniConneX
- Data Center First
- Edge Centres
- EdgeConneX
- Evolution Data Centres
- Hickory
- MettaDC
- Nautilus Data Technologies
- Pure Data Centres Group
- Vantage Data Centers
- YCO Cloud
- YTL Data Center
- Yondr
For more information about this report visit https://www.researchandmarkets.com/r/femo8l
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