Asia Pacific Data Center Construction Market

The Asia Pacific data center construction market was valued at US$ 67,236.34 million in 2022 and is expected to reach US$ 1,47,987.47 million by 2030; it is estimated to register at a CAGR of 10.4% from 2022 to 2030.

Increasing Implementation of Hyperscalers and Colocation Boosts Asia Pacific Data Center Construction Market

A hyperscale is a kind of large-scale data center that offers vast computing capabilities, often in the form of an elastic cloud platform. Organizations use them to manage and deliver extensive applications and services. The objective of hyperscalers is to expand their service offerings while maintaining better latency as well as improve availability in order to cover more ground. They face intense competition from colocation providers in addition to internal competitors. 37% of the capacity of data centers is owned by colocation providers such as Digital Realty, Equinix, CyrusOne, Chindata, and Global Switch; 32% by cloud service providers and hyperscalers; 20% by privately owned data centers; and 11% by telecoms.

Moreover, for small enterprises, constructing their data center involves huge capital. Since these enterprises have a limited budget or capital expenditure to construct a data center, the ROI is comparatively low. As a result, most of these enterprises are choosing colocation or cloud services. These companies do not require much storage space, and constructing their own data center is not feasible. Therefore, they depend on colocation or CSPs to store their data. Also, apart from the capital required to build a data center, other expenses and efforts such as maintenance and service become a burden for these companies. Moreover, the demand for colocation services and hyperscalers is leading to the rise in the construction of mega data centers as they offer economies of scale. Thus, the increasing implementation of hyperscalers and colocation is anticipated to create lucrative opportunities for the Asia Pacific data center construction market growth during the forecast period.

Asia Pacific Data Center Construction Market Overview

APAC comprises the majority of developing economies with the largest number of internet users. This factor presents significant opportunities for leading social media players and internet-based service providers to profit from the untapped APAC market. With the proliferation of cheap smartphones and tablets and increasing penetration of computing devices in businesses and households, the region accounts for the largest growing user base seeking internet-based services. Thus, the strong growth of internet-connected users coupled with good economic growth in the region are the factors encouraging the enterprise and cloud service providers to establish servers in proximity to the users, enabling them to access data with reduced latency and reaction time. This factor contributes to the growth of the Asia Pacific data center construction market in the region.

Asia Pacific Data Center Construction Market Revenue and Forecast to 2030 (US$ Million)

Asia Pacific Data Center Construction Strategic Insights

Strategic insights for the Asia Pacific Data Center Construction provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

Asia Pacific Data Center Construction Report Scope

Asia Pacific Data Center Construction Regional Insights

The geographic scope of the Asia Pacific Data Center Construction refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

Asia Pacific Data Center Construction Market Segmentation

The Asia Pacific data center construction market is segmented based on types of construction, tier standards, industry verticals, and country.

Based on types of construction, the Asia Pacific data center construction market is segmented into general construction, electrical design, and mechanical design. The electrical design segment held the largest share in 2022.

In terms of tier standards, the Asia Pacific data center construction market is segmented into tier 1 & tier 2, tier 3, and tier 4. The tier 3 segment held the largest share in 2022.

By industry verticals, the Asia Pacific data center construction market is segmented into IT & telecommunication, BFSI, government, education, manufacturing, retail, transportation, media & entertainment, and others. The IT & telecommunication segment held the largest share in 2022.

Based on country, the Asia Pacific data center construction market is categorized into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. China dominated the Asia Pacific data center construction market in 2022.

Rittal GmbH & Co KG, Schneider Electric SE, DPR Construction Inc, AECOM, Turner Construction Co, Eaton Corp Plc, and Nikom InfraSolutions Pvt. Ltd are some of the leading companies operating in the Asia Pacific data center construction market.