AP Data Centres Spotlight


Asia Pacific Data Centres Spotlight June 2022

Strong demand continues to support data centre growth across Asia Pacific

Fuelled by substantial user demand, major data centre markets such as China, Japan and South Korea have pulled in substantial investment, while emerging  markets India and Indonesia are set to lead the next wave of growth.

The regional boom in data centres is showing no signs of slowing as data usage and storage demand continue to rise. Compared to other parts of the world, the data centre market in Asia Pacific is still relatively new and has seen a rapid growth spur over the past five years. Yet the region’s huge population base, accounting for 50% of the estimated global count, is ultimately the key driver for data centre services and facilities. This was further accelerated amid the pandemic, as many businesses have shifted to working from home during the sporadic lockdowns. The importance of digital infrastructure to the global economy is more prevalent than ever. Riding on the back of this support, Asia Pacific data centre transaction volume hit to US$5.9 billion, up 32% YoY from 2021, with China still the most active market since 2017.  

Asia Pacific has a diverse data centre landscape, comprising markets at various stages of maturity, ranging from the more developed markets such as Australia, Japan, mainland China, Hong Kong and Singapore to emerging markets such as India, Malaysia, South Korea and Indonesia. China has the most data centre stock with 447 facilities, followed by Australia and Japan, at 279 and 207 each respectively. Meanwhile, growing urbanisation alongside greater digital penetration in emerging markets such as India and Indonesia are expected to drive the next wave of growth. According to Structure Research, the regional data centre market is forecast to grow at a CAGR of 12.2% from 2019 to 2024, with the colocation market size standing at US$28 billion by 2024, surpassing EMEA and North America.