The APAC data center colocation market by revenue is expected to grow at a CAGR of close to 8% during the period 2019–2025


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In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this APAC Data Center Colocation Market Report. The APAC data center colocation market by revenue is expected to grow at a CAGR of close to 8% during the period 2019–2025.

New York, Nov. 04, 2020 (GLOBE NEWSWIRE) — announces the release of the report “Data Center Colocation Market in APAC – Industry Outlook and Forecast 2020-2025” –

The APAC data center colocation market is witnessing growth due to the increased physical presence of hyperscale service operators in the region. The market is expected to observe an increase in the deployment of edge data centers post 2022 due to the growth in the use of connected devices among businesses and consumers.

Telecommunication operators in China are expected to lead the way with the construction of edge data centers. Major data center providers, including hyperscale providers, are likely to invest in edge data center infrastructure during the forecast period. The colocation demand is also aiding in the growth of services such as cloud connectivity, interconnection, and hybrid infrastructure services. Adopting cloud connectivity solutions will grow at a CAGR of 40% in countries such as Australia, New Zealand, China, India, Singapore, Japan, Indonesia, South Korea, and Hong Kong.

The following factors are likely to contribute to the growth of the APAC data center colocation market during the forecast period:
• Increasing Procurement of Renewable Energy among Colocation Providers
• M&A Activities to Improve Colocation Market Share
• Increased Adoption of Lithium-ion Batteries
• Increasing Hyperscale Deployments by Colocation Providers

The study considers the present scenario of the APAC data center colocation market and its market dynamics for the period 2019?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.

APAC Data Center Colocation Market Segmentation
The APAC data center colocation market research report includes a detailed segmentation by electrical infrastructure, mechanical infrastructure, general construction, service and geography. Several data center facilities in APAC with power capacities of more than 10 MW are expected to adopt over 500 kVA capacity UPS systems. However, the service providers are also investing in DRUPS systems with capacities of around 1,500 kVA to power their facilities. Colocation providers in Southeast Asian countries are the major revenue contributors to the power infrastructure market. Modular facilities deployed in the region will procure single-phase lithium-ion UPS systems. Also, large facilities will procure lithium-ion UPS to avoid high OPEX through the maintenance of VRLA systems. Mega data center projects in China & Hong Kong are increasingly deploying 2N redundant UPS systems. Since most vendors offer lithium-ion-based UPS systems, the APAC data center colocation market is expected to become highly competitive during the forecast period.

In China and Hong Kong, most data centers adopt a combination of air and water-based cooling techniques for cooling purposes. A few facilities are built to support free cooling techniques. The adoption of CRAC units and chillers will continue to grow in China and Hong Kong. The facilities located in Australia majorly adopt free cooling solutions. The trend of using free cooling solutions is likely to continue during the forecast period. In New Zealand, the use of free cooling/air cooling solutions is expected to grow because climatic conditions are beneficial for the data center cooling market, leading to the adoption of free cooling solutions in the country.

China is witnessing growth in greenfield data centers construction. In Hong Kong, on the other hand, there will be more brownfield developments due to the shortage of land during the forecast period. In terms of physical security, most facilities use four-layered physical security with on-site security personnel. The need for DCIM software to monitor facilities will continue to grow among existing facilities, and new data centers are likely to be part of the investment. The market in Japan witnessed an increase in general construction and is likely to continue on account of increased demand for data services. The cost of developing data centers, especially in Japan, is high along with the procurement cost of land. The Indonesian market is expected to witness a rise in the construction of greenfield projects with a power capacity of over 5 MW. The cost of construction averages around $4 million. However, it will differ based on the installation of infrastructure and the corresponding redundancy. The increasing construction of new facilities will provide several opportunities for local contractors to gain expertise in building data centers.

Retail colocation services in APAC are likely to grow as several developing countries are shifting from traditional server room infrastructure to data centers. However, the adoption of in-house prefabricated data center solutions by enterprises and government agencies in the region is likely to pose a challenge to the retail colocation market. These solutions provide more control over operations at reduced CAPEX. However, the lack of fundamental prerequisites such as high-speed fiber connectivity and disaster recovery locations to operate in-house prefabricated facilities will drive enterprises to consider managed retail colocation as the best alternative, thereby leading to steady growth of the retail colocation market during the forecast period.

Segmentation by Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches & Switchgears
• PDUs
• Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
• Cooling Systems
o CRAC & CRAH Units
o Chiller Units
o Cooling Towers & Dry Coolers
o Economizers & Evaporative Coolers
o Other Units
• Racks
• Other Mechanical Infrastructure
• Cooling Technique
o Air-based
o Liquid-based
Segmentation by General Construction
• Building Development
• Installation & Commissioning Services
• Building Designs
• Physical Security
Service Type
• Retail Colocation
• Wholesale Colocation

In the APAC region, China & Hong Kong are the prominent markets for data center operations. China & Hong Kong will exceed supply due to the increasing demand for cloud-based services, big data analytics, and IoT. China is the world’s largest IoT market, with 64% of 1.5 billion global cellular connections. The government has set a goal of enabling more than 1.7 billion public machine-to-machine connections by 2020; with this, the IoT market in China is likely to reach revenue of $200 billion by 2020. This will boost the construction of mega and large colocation facilities and prompt regional cloud service providers to establish multiple availability zones across the country as the demand for hybrid infrastructure services increases. Besides, there is a high demand for cryptocurrency data centers in China, boosting the development of high-performance computing infrastructure. The mega data center projects in China & Hong Kong are designed to be of Tier III and Tier IV standards, with the increased deployment of 2N redundant UPS systems.

Segmentation by Geography
• China & Hong Kong
• Australia & New Zealand
• Japan
• India
• Rest of APAC
• Southeast Asia
• Singapore
• Indonesia
• Malaysia
• Thailand
• Other SEA

Chinese data center colocation service providers such as GDS Services, Tenglong Holding, ChinData, Shanghai Athub, and 21Vianet invest billions of dollars towards new facility development. Throughout the APAC region, there are more than 50 data center projects with a power capacity of more than 10 MW. GDS Holding invested in more than 15 facilities that were opened and under construction in 2019, with an estimated power capacity of 240 MW. New entrants are fueling the need for hyperscale facilities in APAC. This includes Chayora, SpaceDC, Yotta Infrastructure, Regal Orion, Princeton Digital Group (PDG), and BDx (Big Data Exchange). Existing service providers are expanding their presence across many major markets, namely, AiTrunk (Singapore & Hong Kong), Bridge Data Centers (India), Equinix (India), Colt DCS (India), ST Telemedia (Thailand), and Kepple DC REIT (Indonesia). Most countries in the APAC region have a low cost of construction, reducing per MW investments to around $4–5 million for Tier III facilities. However, Singapore, Hong Kong, Japan, and Australia are the exception, as the development cost is over $7 million for a new project.

Prominent Colocation Service Vendors
• 21Vianet ( Century Internet Data Center)
• China Telecom
• Digital Realty
• Equinix
• GDS Services Ltd.
• Global Switch
• Keppel DC
• NTT Communications
• Shanghai Athub
• ST Telemedia Global Data Center (STT GDC)
• Telehouse (KDDI)

Other Prominent Colocation Service Providers
• AirTrunk Operating
• AT Tokyo
• Bridge Data Centers
• Canberra Data Centers
• China Mobile
• China Unicom
• Chindata
• Chunghwa Telecom (CHT)
• Colt Data Center Services (COLT DCS)
• CtrlS
• China Mobile International Limited (CMI)
• Internet Initiative Japan Inc.
• Iron Mountain
• Internet Thailand Public Company Limited (INET)
• Katalyst Data Management
• Korean Telecom Corporation (KT Corp.)
• Neo Telemedia
• PCCW Solutions
• Philippine Long-Distance Telephone (PLDT)
• Reliance Communications (Global Cloud Exchange)
• Sify Technology
• Singtel
• Sinnet
• Tenglong Holdings Group (Tamron)
• PT Telekomunikasi Indonesia
• VADS Berhad

New Entrants
• Chayora
• Kepstar Data Center Management
• SpaceDC
• Yotta Infrastructure
• Regal Orion
• Princeton Digital Group (PDG)
• BDx (Big Data Exchange)

1. What is the size of the APAC data center colocation market in terms of investments, area, power capacity, service type (retail/wholesale), and revenue in more than 10 countries across the world?
2. What is the market share of retail and wholesale colocation services in the APAC region?
3. What is the APAC data center colocation market share by leading service providers by investments, area, power capacity, and colocation services?
4. What drivers, trends, and restraints are driving the APAC data center colocation market?
5. Who are the prominent vendors in the APAC data center colocation market?
6. What is the number of new entrants entering the APAC data center colocation market?
7. What is the impact of the COVID-19 pandemic on the APAC data center colocation market shares?
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