APAC Data Center Market Landscape 2026-2031

The APAC data center market size by investment is expected to grow at a CAGR of 12.41% from 2025 to 2031.

APAC DATA CENTER MARKET SEGMENTATION INSIGHTS

• The demand for liquid cooling techniques is anticipated to rise rapidly among the data centers in the APAC region during the forecast period. In 2025, liquid cooling technologies accounted for approximately 55.2% of the cooling technique investments in the APAC data center market, and this share is anticipated to increase to around 59% of the cooling technique investments in 2031, owing to the rising demand for processing advanced Artificial Intelligence and high-performance computing workloads. Several data center firms are increasingly prioritizing the adoption of advanced liquid cooling techniques, such as immersion and direct-to-chip cooling, to improve thermal management.
• Data center companies across the APAC region are making significant investments in AI-ready facilities equipped with GPU clusters, advanced liquid cooling systems, high-density racks, and greater IT power capacity. For example, in January 2026, APAC-based data center operator Digital Edge DC announced plans to develop an AI-focused data center in Jakarta, Indonesia, with an investment of around $4.5 billion. Investment in AI-ready data centers is expected to continue growing across APAC during the forecast period as demand for AI infrastructure is rising continuously.
• In the APAC region, the colocation companies account for the majority of the data center investments. For instance, in 2025, approximately 78.48% of the data center investments were generated by colocation service providers in the APAC region. In October 2025, the colocation company Equinix revealed that the company had completed the structural build-out of its JH2 data center facility in Johor, Malaysia, with an investment of over $201 million.
• As the need for sustainable data center infrastructure continues to grow, operators are preferring to invest in low-carbon power and cooling technologies. Many companies are adopting solutions such as lithium-ion batteries, Hydrotreated Vegetable Oil (HVO)-powered generators, and advanced power distribution systems to improve energy efficiency and reduce emissions. For instance, Microsoft has installed renewable biofuel-powered backup generators at its data center in South Korea to help lower its carbon footprint.
• Many data center companies are focusing on deploying high-density racks in their facilities to support complex Artificial Intelligence workloads. For example, DC Connect planned to install high-density racks in its Seoul1 data center in South Korea, with rack densities ranging from 60 kW to 200 kW to address the increasing requirements for processing artificial intelligence workloads.
• Data center operators are increasingly investing in DCIM and BMS software to improve energy efficiency, reduce carbon emissions, and lower operating costs. These systems help companies to simplify data center management through better monitoring and automation, reducing the need for manual operations. For example, Open DC has implemented a 24/7 BMS monitoring system at its JB1 data center in Johor, Malaysia.
• The local and global hyperscalers have been investing in the development of large-scale hyperscale data center campuses across the APAC region. In 2025, the hyperscale data center investments increased by over 15.70% in the APAC data center market, compared to 2024. In December 2025, the hyperscale giant, Amazon Web Services, partnered with Telangana's government to boost cloud and data center infrastructure in India, with an investment of approximately $7 billion.
• In the APAC data center market, the requirement for advanced security systems is expected to grow significantly during the forecast period to protect facilities from physical security threats. Data center operators are increasingly deploying technologies such as biometric access controls, card readers, CCTV surveillance systems, perimeter fencing, and other security solutions to enhance safety and protection in their facilities.

APAC DATA CENTER MARKET KEY TRENDS & DRIVERS

Rising Digitalization Fuelling Data Center Growth

• The nations across the APAC region are experiencing rapid digital transformation, which is boosting their digital economies and increasing the need for data center infrastructure. The rising adoption of cloud computing, e-commerce, fintech, artificial intelligence, and other digital services is generating larger volumes of data that require storage and processing. Therefore, the demand for high-performance, low-latency data centers is rising significantly across the APAC region.
• In October 2025, New Zealand's government revealed that the country could save around $2.2 billion over the next five years by focusing on digitalization and promoting the adoption of advanced digital technologies among enterprises across various sectors to boost their productivity and operational efficiency.
• As enterprises across a wide range of industries continue to rely on digital services, the need for real-time data processing is expected to grow significantly. This will increase the demand for data centers across the APAC region to store, process, and manage large volumes of data required to support a wide range of digital applications and services.

Artificial Intelligence Aiding Data Center Investments

• The adoption of artificial intelligence is growing rapidly across the APAC region, driven by ongoing technological advancements and an increasing focus on technological innovation. Artificial intelligence is playing an important role in supporting digital transformation across various industries. Businesses are increasingly relying on artificial intelligence to improve operational efficiency, automate processes, and enhance business performance.
• In November 2025, the government of Taiwan revealed that it had allocated over $3.2 million to strengthen artificial intelligence infrastructure in Taiwan and to position the country as one of the global AI leaders by 2040. Additionally, this initiative focuses on three main technologies, namely, photonics, quantum computing, and AI robotics.
• Artificial intelligence workloads generate large volumes of data that require multiple high-performance servers for processing. These servers produce significant amounts of heat and require reliable power and higher rack densities to operate efficiently. As the adoption of artificial intelligence continues to grow, the demand for liquid cooling solutions is expected to increase, as they help data center facilities to dissipate heat effectively.

The Surge in Adoption of Liquid Cooling Technologies in Data Centers

• APAC is one of the leading regions in the adoption of advanced technologies such as Artificial Intelligence, Big Data, and the Internet of Things (IoT). Governments across the region are introducing various initiatives to support the development of these emerging technologies and strengthen the digital economy. Therefore, the demand for Artificial Intelligence (AI)-optimized data centers is growing rapidly across APAC countries. These facilities require advanced cooling solutions, such as direct-to-chip liquid cooling and immersion cooling, to efficiently manage the high heat generated by AI workloads.
• In October 2025, BW Digital, the digital infrastructure services provider, announced the completion of the structural framework at its NDP1 data center in Batam. The data center is anticipated to be equipped with a direct liquid cooling technique.
• The adoption of liquid cooling in APAC data centers is still at an early stage. However, the growing use of emerging technologies such as Artificial Intelligence and high-performance computing is expected to increase the demand for liquid cooling solutions during the forecast period. These technologies generate large amounts of heat, increasing the demand for advanced cooling technologies.

Government Initiatives Driving Data Center Investments

• Governments across the APAC nations are supporting the growth of data centers through various initiatives, including investments in AI infrastructure, providing financial support and tax incentives to data center operators, and the governments are also introducing various regulations to strengthen digital infrastructure across the APAC countries.
• In October 2025, Lee Jae Myung, South Korea's president, signed an agreement with Sam Altman, OpenAI's CEO, to develop two new data centers in South Korea to address the rising demand for Artificial Intelligence services in the country.
• Through sustainability programs, financial incentives, and policy support, governments across the APAC countries are making substantial efforts to position APAC as one of the key destinations for data center development and long-term digital infrastructure growth. As data centers continue to play an important role in supporting the digital economy, government support for data centers is likely to increase further during the forecast period.

Increasing Adoption of Cloud Computing Technologies

• The demand for cloud computing services is growing rapidly across APAC countries, creating new opportunities for cloud service providers. The cloud computing demand is driven by increasing digitalization, the expansion of 5G connectivity, and data regulations that encourage local data storage and processing.
• In July 2025, Oracle revealed that the company had launched its first cloud region, namely the North (Batam) cloud region in Indonesia, with one availability zone, and the company is expected to lease space in the data center operated by DayOne in Batam.
• The growing adoption of cloud computing services across the APAC region is expected to increase the demand for data center infrastructure. Cloud providers require scalable and low-latency data centers to host their workloads, to support the expanding digital ecosystem, and to meet increasing data sovereignty requirements across the region.

Advancements in Big Data, Internet of Things (IoT), and Smart City Projects

• Advanced technologies such as Big Data and the Internet of Things (IoT) are becoming important for businesses to collect, process, and manage large volumes of data. IoT helps organizations to improve data management, scalable storage, and real-time analytics. The growing adoption of Big Data and IoT is expected to support digital transformation across APAC countries.
• According to the IMD Smart City Index 2025, Osaka and Tokyo ranked 99th and 108th globally, respectively. These rankings have been achieved through factors such as digital infrastructure, technological development, and quality of life in the two cities. Through the Society 5.0 initiative, Japan aims to build a super-smart society by using digital technologies to improve daily life and address social challenges through innovation.
• The growing adoption of emerging technologies such as Big Data and the Internet of Things (IoT), along with smart city developments, is expected to drive the demand for edge data centers across the APAC region during the forecast period. These facilities help to process and store data closer to end users, enabling faster data access and lower latency.

Surge in Submarine Cable Connectivity Fuels Data Center Growth

• The expansion of submarine cables and inland fiber networks is strengthening digital infrastructure across APAC countries and increasing the demand for data centers. Submarine cables carry around 95% of global data traffic and enable high-capacity, low-latency data transmission between countries and regions. As the investments in new transoceanic cable routes continue to grow, the demand for cable landing stations, edge data centers, and digital infrastructure is expected to increase significantly across the APAC region.
• In November 2025, Google announced plans to develop the TalayLink submarine cable, which is expected to improve digital connectivity and enhance data transmission speeds between Melbourne and Perth in Australia and Thailand.
• Growing investments in submarine cables and inland connectivity are expected to strengthen APAC's digital connectivity with Europe, the Middle East, and the Americas. These developments will help to increase international bandwidth capacity, improve network reliability, and support the region's position as one of the major global digital hubs.

Increasing Joint Ventures in the Market

• As demand for digital infrastructure is continuously growing across the APAC countries, digital infrastructure providers are increasingly collaborating through partnerships and joint ventures with AI companies, real estate developers, investment firms, energy providers, and other organizations. These collaborations aim to support the expansion and development of digital infrastructure across the region.
• In October 2025, AI infrastructure provider OpenAI partnered with a Japanese manufacturing company, Hitachi Energy, to supply electrical infrastructure equipment for the development of an AI-ready data center in South Korea.
• The number of joint ventures and strategic partnerships among digital infrastructure providers across APAC is expected to grow further during the forecast period. These collaborations will help digital infrastructure providers to address the rising demand for data center infrastructure and to support the region in continuously expanding its digital economy.

Adoption of Sustainability Measures Among Data Center Operators

• Sustainability initiatives are becoming one of the most important factors in driving data center investments across the APAC region. Data center operators are increasingly focusing on reducing their environmental impact and lowering greenhouse gas emissions. Many companies have also established carbon neutrality and net-zero emission targets as part of their sustainability efforts.
• In April 2025, AirTrunk partnered with JSW to launch a recycled water initiative, which will help AirTrunk to improve water management at its JHB1 and JHB2 data center campuses in Malaysia. This initiative will recycle the wastewater in data centers and supply it to residents.
• Data center operators are increasingly adopting sustainable technologies such as liquid cooling, free cooling systems, renewable energy, and waste heat recovery to reduce their environmental impact. The adoption of environmentally friendly practices is expected to grow significantly across APAC over the next five years, as data center operators continue to strengthen their sustainability.

APAC DATA CENTER MARKET GEOGRAPHICAL ANALYSIS

• In 2025, China led the APAC data center market in terms of power capacity, accounting for a power capacity share of over 53%, followed by Southeast Asia, which accounted for a power capacity share of around 16.65% during the same period. This dominance is anticipated to continue over the next five years, with China expected to contribute approximately 52.98% of the APAC data center market's power capacity in 2031, followed by South Asia, which is likely to account for around 17.20% of the APAC data center market's power capacity share during the same period.
• Due to increasing challenges related to land availability and power capacity in major APAC data center hubs, operators are increasingly exploring emerging and secondary markets for new developments. Countries such as Malaysia, Indonesia, New Zealand, Taiwan, and India have seen strong growth in data center investments in recent years. However, the established markets like Singapore, Tokyo, Osaka, Sydney, and Hong Kong face growing land and power constraints; locations such as Jakarta, Cyberjaya, Johor, Auckland, and Canberra are attracting data center investments significantly.
• The nations across the APAC region are making significant strides to reduce their environmental impact and lower carbon emissions. For example, Japan has set a goal of achieving carbon neutrality by 2050 and aims to significantly reduce its carbon emissions by 2040. Similarly, New Zealand is targeting net-zero greenhouse gas emissions by 2050 as part of its long-term sustainability strategy.
• In 2025, Indonesia contributed around 17.92% of the Southeast Asia data center market's data center investments, and the country accounted for approximately 2.22% of the data center investments in the APAC data center market during the same period.
• Hong Kong acts as an important gateway to China due to its strategic location and strong digital connectivity with mainland China. Hong Kong is expected to generate approximately 2.82% of the overall investments in the APAC data center market in 2025.
• Data center construction costs vary widely across APAC countries due to differences in land prices, labour costs, power infrastructure, and regulatory requirements. Markets such as Japan and Singapore are among the most expensive locations for data center development, with construction costs of $15 per watt as of December 2025. In contrast, countries including China, India, South Korea, Indonesia, and Malaysia generally offer lower construction costs, making them attractive destinations for new data center investments.
• Japan contributed approximately 10.08% of the data center investments in the APAC data center market in 2025. Growing government support for the data center sector and the rising adoption of Artificial Intelligence are driving data center investments in Japan's data center market. To strengthen the country's Artificial Intelligence capabilities, the Japanese government planned to invest around $65 billion in driving the nation's Artificial Intelligence infrastructure by 2030.
• The rapid growth of Artificial Intelligence (AI) usage in China is creating strong demand for data center infrastructure across the country. AI is being adopted by businesses and individuals for a wide range of applications, increasing the need for higher computing power and data processing capacity. To support this growth, China is actively promoting AI development and adoption through various national initiatives. As the adoption of artificial intelligence continues to expand over the upcoming years, investment in data centers is expected to increase significantly to address the growing demand for digital infrastructure.
• The government of Taiwan is actively supporting industrial and technology development through the establishment of several technology and industrial parks across the country. Major industrial parks in Taiwan include Nangang Software Park, Neihu Technology Park, Yunlin Technology-Based Industrial Park, and others that attract technology investments and support business growth in the country.

APAC DATA CENTER MARKET VENDOR LANDSCAPE

The report profiles and examines leading companies and other prominent ones operating in the market.

Segmentation by Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based
• Liquid-based

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Physical Security
• Fire Detection & Suppression
• DCIM

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

Segmentation by Geography

• APAC
  • China
  • Hong Kong
  • Australia
  • New Zealand
  • India
  • Japan
  • South Korea
  • Taiwan
  • Rest of APAC
• Southeast Asia
  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Philippines
  • Vietnam
  • Other Southeast Asian Countries

Key Data Center IT Infrastructure Providers

• Arista Networks
• Atos
• Broadcom
• Cisco
• Dell Technologies
• Extreme Networks
• Everpure
• Fujitsu
• Hewlett Packard Enterprise
• Hitachi Vantara
• Huawei Technologies
• IBM
• Inspur Group
• Intel
• Lenovo
• Micron Technology
• NEC Corporation
• NetApp
• NVIDIA
• Oracle
• Quanta Cloud Computing
• QNAP Systems
• Quantum
• Seagate Technology
• Supermicro
• Toshiba
• Western Digital
• Wiwynn

Key Data Center Support Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Eaton
• Rittal
• Schneider Electric
• STULZ
• Vertiv

Other Data Center Support Infrastructure Providers

• 3M
• Aggreko
• Airedale
• AIRSYS
• Aksa Power Generation
• Alfa Laval
• Baudouin
• Bosch
• Canovate Group
• Carrier
• Condair Group
• Cyber Power Systems
• Danfoss
• Delta Electronics
• EAE Group
• EAST GROUP
• ENGIE
• ENVICOOL
• EVADA (Xiamen) Technology
• Fuji Electric
• Green Revolution Cooling (GRC)
• Hitachi Energy
• HITEC Power Protection
• Honeywell
• Hongbao Power Supply
• INVT Power
• KSTAR
• Legrand
• Mitsubishi Electric
• Nanjing Jialitu Data Center Environment Technology
• Narada
• Nortek Data Center Cooling
• Piller Power Systems
• Rehlko
• Rolls-Royce
• Shenling
• Siemens
• Socomec
• Submer
• Systermair Group
• Thycon
• Trane
• ZTE Corporation

Key Data Center Construction Contractors

• AECOM
• Arup
• Aurecon
• CSF Advisors
• DSCO Group
• Gammon Construction
• Larsen & Tourbo
• NTT Facilities
• PM Group
• Studio One Design

Other Data Center Construction Contractors

• ADIK
• AEON SERVICES
• AHLUWALIA CONTRACTS
• Asima Architects
• AtkinsRealis
• AWP Architects
• ARWADE INFRASTRUCTURE
• Beca
• B-Global Tech
• BYME Engineering
• China Electronics Engineering Design Institute (CEEDI)
• China State Construction Engineering Corporation (CSCEC)
• Chung Hing Engineers Group
• Corgan
• Critical Holdings
• CTCI
• Cundall
• DAIWA HOUSE INDUSTRY
• Design Coordinates
• DL E&C
• DPR Construction
• Exyte
• FDC Construction & Fitout
• Finishing Touch Design Studio
• Fortis Construction
• GAMUDA
• Gensler
• GS E&C
• HanmiGlobal
• Hanwha Corporation E&C Division
• HDR
• Heerim Architects & Planners
• Hutchinson Builders
• Hyundai Engineering & Construction
• Icon Construction
• ISG
• Infraset Public Company
• JSLA Architects
• Kienta Engineering Construction
• Leighton Asia
• Linesight
• LSK Engineering
• Mace
• Megawide Construction Corporation
• Meinhardt Group
• MES Group
• MN Holdings
• Nakano Construction
• Nikken Sekkei
• Obayashi Corporation
• Powerware Systems (PWS)
• PT. Aesler Group International Tbk
• PT AtoZ Teknik Sejahtera
• PT Berca Buana Sakti
• PT Jaya Karya Integrasi
• PT Jaya Teknik Indonesia
• PT Jaya Obayashi
• PT KAJIMA INDONESIA
• PT PP (Persero) Tbk
• PT Sumaraja Indah
• Ramboll
• RED Engineering Design
• Rider Levett Bucknall RLB
• SAMOO Architects & Engineers
• Samsung C&T
• Sterling & Wilson
• Syntec Construction Public Company
• Sunway Construction Group
• Taisei Corporation
• Takenaka Corporation
• TODA CORPORATION
• Turner & Townsend
• WT

Prominent Data Center Investors

• AirTrunk
• Alibaba Group
• Amazon Web Services
• Apple
• BDx Data Centers
• CDC
• China Mobile International
• China Telecom Corporation
• China Unicom
• Chindata Group
• DayOne
• Digital Realty
• Equinix
• GDS Holdings
• Google
• Keppel Data Centres
• Microsoft
• NEXTDC
• NTT DATA
• Princeton Digital Group
• ST Telemedia Global Data Centres

Other Data Center Investors

• AdaniConneX
• A-FLOW
• AIMS Data Centre
• Anant Raj Cloud Data Center
• @Tokyo
• Beeinfotech PH
• Beijing Sinnet Technology
• Lumina CloudInfra
• BRIGHTRAY
• BSNL
• CapitaLand
• Centuria Capital Group
• Chayora
• Chief Telecom
• Chunghwa Telecom
• CMC Telecom
• Colt Data Centre Services
• Converge ICT Solutions
• Ctrls Datacenters
• DCI Data Centers
• DCI Indonesia
• Digital Edge DC
• Digital Halo
• DITO Telecommunity
• Dr. Peng Telecom & Media Group
• EdgeConneX
• Empyrion Digital
• ePLDT
• ESDS Software Solution
• FPT Telecom
• Fujitsu
• Gaw Capital
• Global Switch
• Goodman
• GSA DATA CENTER
• Hotwon Network Group
• Huawei
• IDC Frontier
• Internet Initiative Japan
• Iron Mountain
• iTech Towers Data Centre Services
• KORAMCO Asset Management
• KT Corp.
• Racks Central
• LG CNS
• LG Uplus
• Macquarie Data Centres
• Mapletree
• Meta
• MettaDC
• Singtel (Nxera)
• Nxtra by Airtel
• OneAsia Network
• Open DC
• Pure Data Centres Group
• Reliance Jio
• Samsung SDS
• Secom Trust Systems
• Sify Technologies
• SK Broadband
• SK ecoplant
• SKYY Development
• SM+
• ST Engineering
• STACK Infrastructure
• T4 NZ Data Centres
• Techno Electric & Engineering Company (TEECL)
• Telehouse
• VADS Berhad
• Telkom Indonesia
• Tenglong Holding Group
• TenPeaks Data Centres
• TikTok
• True IDC
• Vantage Data Centers
• Viettel IDC
• VNET Group
• VNTT
• YCO Cloud
• Yondr Group
• Yotta Data Services
• YTL Data Center
• Ada Infrastructure
• @hub
• SUNeVision Holdings
• Etix Everywhere
• Epoch Digital
• RackBank
• VNPT
• CAT Telecom Public Company (National Telecom)
• RailTel Corporation
• Pi Data Centers

New Entrants

• AIZO Group Berhad
• AM Green Group
• Aqylon Nexus
• AREA Group of Companies
• Asia Pacific Land (APL)
• Aslan Energy Capital
• BW Digital
• Changhae Development
• Chinachem Group
• CloudHQ
• Create Capital Viet Nam Joint-stock Company + haimaker+ Vietnam Data Gen
• CURRENC Group
• CyrusOne
• Da Nang International Data Centre Joint Stock Company (JSC)
• Daewoo Engineering & Construction
• DAMAC Digital
• Data Center First
• Datagrid New Zealand
• DC Connects
• Doma Infrastructure Group
• Dongyang
• Diode Ventures
• Endec
• ESR
• Everstone Group
• Evolution Data Centres
• FIR HILLS
• FLOW Digtal Infrastructure
• FutureData
• GIBO Holdings
• GigaStream Toyama
• Global Telecommunications
• GreenSquareDC
• Haoyang Data
• Henox IT And Datacenters
• Hyosung Corporation
• i-Berhad
• IGIS Asset Management
• Infracrowd Capital
• Inuverse
• ISPT
• IPTP Networks
• Kakao Corp.
• KinhBacCity Group +Accelerated Infrastructure Capital +VietinBank
• KOSCOM
• Lehr Consultants International
• LG Electronics +KEPK + Hanwha Corporation E&C Division
• MaNaDr Mobile Health
• THOMSON Computing - METAVISIO
• MARKHAM
• Megaspeed AI
• MyTelehaus
• Nautilus Data Technologies
• NES DATA
• OKESTRO
• Perri Group
• Supernode by Quinbrook Infrastructure Partners
• Rovision Tech Hub
• Siagon Asset Management
• Saigontel
• SC Zeus Data Centers
• SEAX Global
• SGC Energy
• Stecon Group Public Company +SC Zeus Data Centers +Freyr Technology
• Tata Consultancy Services & OpenAI
• Toyota Tsusho Corporation
• TPG Angelo Gordon
• Trifalga
• UPC Volt
• ZDATA Group
• Zr Power Holdings

KEY QUESTIONS ANSWERED:

1. How big is the APAC data center market?

2. What is the growth rate of the APAC data center market?

3. What are the key trends in the APAC data center market?

4. What is the estimated market size in terms of area in the APAC data center market by 2030?

5. How much MW of power capacity is expected to reach the APAC data center market by 2030?

6. What is the growth rate of the APAC data center market?