APAC Hyperscale Data Center Market - Industry Outlook & Forecast 2026-2031

The APAC hyperscale data center market size by investments is expected to grow at a CAGR of 16.40% from 2025 to 2031.

APAC HYPERSCALE DATA CENTER MARKET TRENDS

Adoption of Sustainability Measures Among Data Center Operators

• Sustainability and green practices are key drivers of data center investments in APAC. Data center operators are increasingly prioritizing energy efficiency to minimize greenhouse gas emissions, environmental impact, and operational costs, while promoting sustainability across the country.
• Most of the countries across APAC have set sustainability targets to reduce their environmental impact and become carbon neutral. For instance, Australia has set a national target to achieve net-zero greenhouse gas emissions by 2050 and is therefore increasing its focus on renewable energy generation. The country aims to source over 82% of its electricity from renewables by 2030.
• Japan aims to achieve carbon neutrality by 2050. According to a new climate plan, the country aims to reduce carbon emissions by 60% and 73% by 2035 and 2040, respectively. The Indian government announced that it aims to achieve the net-zero emissions target by 2070.
• Indonesia aims to achieve a net-zero carbon emissions target by 2060; hence, it focuses on producing its electricity from renewable sources significantly. The country is committed to generating over 48% of its electricity through renewables by 2030.
• Taiwan aims to achieve net-zero emissions by 2050. Therefore, the government pushes the use of renewable energy to promote this goal. The renewable energy roadmap states that Taiwan is likely to install 8 GW-14 GW of geothermal, 50 GW-80 GW of solar, and 40 GW-55 GW of wind power by 2050.
• The adoption of sustainable technologies, such as liquid cooling, free cooling, renewable energy integration, and waste heat recovery, is helping data center operators reduce their environmental footprint. The implementation of these green practices is expected to accelerate across APAC over the next five years.

AI Aids Data Center Growth

• The adoption of AI in APAC continues to witness significant growth across various sectors, fuelled by the technological infrastructure and focus on innovation in the region. AI is further playing a significant role in enhancing digital transformation across diverse sectors, which include manufacturing, automotive, healthcare, and finance.
• The governments across the APAC nations are increasingly focusing on AI development and encouraging public and private organizations to adopt AI applications to enhance their operational efficiency and boost productivity.
• In November 2025, the Taiwanese government announced it had allocated around $3.2 million to make strong AI infrastructure in Taiwan to become a global AI leader by 2040. In addition, this initiative focuses on three main technologies, including photonics, quantum computing, and AI robotics.
• In August 2025, the South Korean government planned to develop smart power grids to optimize electricity production in South Korea by leveraging AI services. AI is likely to allow smart grids to predict the demand for electricity in the future and predict the amount of renewable energy to be generated to meet the required demand.
• APAC is accelerating AI development through initiatives such as expanding AI-ready data center infrastructure, strengthening government support, and promoting AI adoption across industries, including healthcare, finance, and technology, to drive digital transformation and sustainability.

APAC HYPERSCALE DATA CENTER MARKET SEGMENTATION INSIGHTS

• In the APAC hyperscale data center market, the demand for UPS systems is growing due to the increasing investments in data centers. Data center operators are expected to gradually prioritize installing Li-ion batteries in place of traditional lead-acid UPS systems to enhance sustainability. The SY1 facility by Equinix in Sydney and the ME1 facility in Melbourne are equipped with N+1 UPS redundancy.
• In the APAC hyperscale data center market, most data center facilities are equipped with diesel generators with at least N+1 or 2N redundancy configuration. The demand for HVO-powered generators is expected to increase during the forecast period.
• Racks are the basic components of data centers that host IT equipment. These racks are available in a variety of sizes, ranging from 36U to 55U, depending on the available elevated floor area. The 42U rack unit is the most used in data centers. Rack units of 45U, 47U, and 48U are mainly installed in large data centers.
• Air-based cooling techniques in data centers comprise DX-based CRAC units, free cooling technique solutions, air-cooled chiller-based cooling, and dry coolers.
• The adoption of the liquid cooling technique is emerging as a key trend in the APAC data center market, driven by rapidly rising rack power densities. According to insights from NEXTDC, Vertiv, and NVIDIA, data center average rack densities are expected to grow from approximately 15 kW-25 kW to over 50 kW by 2029. As AI workloads intensify, peak rack densities are projected to reach 250 kW-500 kW, making traditional air cooling insufficient and accelerating the shift toward liquid cooling techniques.

APAC HYPERSCALE DATA CENTER MARKET REGIONAL ANALYSIS

• China stands out with approximately 22 existing undersea cables that connect China to other countries worldwide such as Japan, Singapore, Malaysia, the Philippines, Taiwan, South Korea, Cambodia, India, Egypt, Qatar, Thailand, the UAE, Vietnam, the US, and others. In 2025, around three new submarine cables were developed in China.
• Hong Kong is an attractive business destination due to its proximity to mainland China, strong international trade links, and significant growth in FDI, ranking just behind major markets such as the US, the UK, and China. To support the expansion of the data center industry, the government established the Developing Data Centres Unit, intending to make Hong Kong a leading APAC data center hub as well as a key center for technological collaboration and trade.
• Data center operators in Japan signed renewable energy PPAs for data center facilities. For instance, in October 2025, Microsoft announced the signing of a PPA with Shizen Energy, a Japanese energy firm that offers around 100 MW of solar power in Japan.
• Mumbai, Navi Mumbai, Hyderabad, Chennai, and Pune are the preferred locations in India data centers, with major investments from service providers such as ST Telemedia Global Data Centres, NTT DATA, Equinix, Sify Technologies, Airtel (Nxtra Data), among others.

APAC HYPERSCALE DATA CENTER MARKET VENDORS LANDSCAPE

• The APAC hyperscale data center market has the presence of key investors such as AirTrunk, Alibaba Cloud, Apple, AWS, Bridge Data Centres, CDC Data Centres, China Mobile International, China Unicom, DayOne, Digital Realty, Equinix, Google, Keppel Data Centres, Meta, Microsoft, NEXTDC, NTT DATA, Princeton Digital Group, ST Telemedia Global Data Centres, STACK Infrastructure, Vantage Data Centers and others.
• In April 2026, AirTrunk announced the acquisition of Lumina CloudInfra, marking its entry into India's rapidly expanding digital and AI infrastructure market. Through the acquisition, AirTrunk gains access to Lumina's development pipeline, established customer and partner relationships, operational expertise, and a planned portfolio of approximately 600 MW of capacity, representing around $5 billion in future data center development opportunities.
• In September 2025, Alibaba Cloud announced plans to expand its data center footprint across key APAC markets, including Japan, South Korea, and Malaysia, to support growing demand for AI and cloud services.
• In March 2025, the CURRENC Group announced its plan to acquire around 100 acres of land in Johor for the development of a new 500 MW data center campus. The first phase of 100 MW is slated to become operational by the end of 2026, providing colocation and wholesale leasing to customers.
• In 2026, Nxera, a data center arm of Singtel, in collaboration with Telkom Indonesia's subsidiary, NeutraDC, and Medco Power, an Indonesian energy company, is developing Batam Data Center with an IT power capacity of over 54 MW in Batam, Indonesia.

The report includes the investment in the following areas:

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 System

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

Segmentation by Cooling Technique

• Air-based
• Liquid-based

Segmentation by General Construction

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

Segmentation by Tier Standards

• Tier I & Tier II
• Tier III
• Tier IV

Geography

• China
• Hong Kong
• India
• Japan
• South Korea
• Taiwan
• Australia
• New Zealand
• Singapore
• Malaysia
• Vietnam
• Philippines
• Thailand
• Indonesia

Prominent Data Center IT Infrastructure Providers

• Arista Networks
• Atos
• Broadcom
• Cisco
• Dell Technologies
• Extreme Networks
• Fujitsu
• Hewlett Packard Enterprise
• Hitachi
• Huawei Technologies
• IBM
• Inspur
• Intel
• Lenovo
• Micron Technology
• NetApp
• NVIDIA
• Oracle
• Pure Storage (Everpure)
• Quanta Cloud Technology
• QNAP Systems
• Quantum
• Seagate
• Super Micro Computer
• Western Digital

Prominent 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 CO.
• ENGIE
• ENVICOOL
• EVADA
• Fuji Elecetric
• Green Revolution Cooling (GRC)
• Hitachi Energy
• HITEC Power Protection
• Honeywell
• Hongbao Power Supply Co.
• INVT Power
• KSTAR
• Legrand
• Mitsubishi Electric
• Nanjing Jialitu Data Center Environment Technology Co.
• Narada
• Nortek Data Center Cooling
• Piller Power Systems
• Rehlko
• Rolls-Royce
• Shenling
• Siemens
• Socomec Group
• Submer
• Systermair Group
• THYCON
• Toshiba Corporation
• Trane
• ZTE Corporation

Prominent Data Center Contractors

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

Other Data Center Contractors & Subcontractors

• ADIK
• AEON Services
• AHLUWALIA CONTRACTS
• Asima Architects
• ARWADE INFRASTRUCTURE
• Beca
• B-Global Tech
• BYME Engineering
• China Electronics Engineering Design Institute
• China State Construction Engineering Corporation
• 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
• Kienta Engineering Construction
• Leighton Asia
• Linesight
• LSK Engineering
• Mace
• Megawide Construction Corporation
• Meinhardt Group
• MES Group
• MN Holdings
• Nakano Construction
• Nikken Sekkei
• Obayashi Corporation
• PT AtoZ Teknik Sejahtera
• PT Berca Buana Sakti
• PT Jaya Karya Integrasi
• PT Jaya Teknik
• PT PP (Persero) Tbk
• PT Sumaraja Indah
• Ramboll
• RED Engineering Design
• Rider Levett Bucknall RLB
• SAMOO Architects & Engineers
• Samsung C&T
• Sterling and Wilson
• Syntec Construction Public Company
• Sunway Construction Group
• Taisei Corporation
• Takenaka Corporation
• TODA CORPORATION
• Turner & Townsend
• WT

Key Data Center Investors

• AirTrunk
• Alibaba Group
• Amazon Web Services (AWS)
• Apple
• Bridge Data Centres
• CDC Data Centres
• China Mobile International
• China Unicom
• DayOne
• Digital Realty
• Equinix
• Google
• Keppel Data Centres
• Meta
• Microsoft
• NEXTDC
• NTT DATA
• Princeton Digital Group
• STACK Infrastructure
• ST Telemedia Global Data Centres (STT GDC)
• Vantage Data Centers

Other Data Center Investors

• AdaniConneX
• AIMS Data Centre
• BDx Data Centers
• BRIGTHRAY
• ByteDance
• CapitaLand
• CMC Telecom
• Colt Data Centre Services
• CtrlS Datacenters
• Digital Edge DC
• Digital Halo
• EdgeConneX
• Empyrion Digital
• ePLDT
• Epoch Digital
• Fujitsu
• Global Switch
• Goodman
• Iron Mountain
• KT Corp
• LG CNS
• LG Uplus
• Macquarie Data Centres
• Mapletree
• Nxera (Singtel)
• Nxtra by Airtel
• OneAsia Network
• Racks Central
• Sify Technologies
• SK Broadband
• SKYY Development
• SUNeVision Holdings
• Telehouse
• True IDC
• Viettel IDC
• VNPT
• Yotta Data Services
• YTL Data Center

New Entrants

• Ada Infrastructure
• Aqylon Nexus
• Asia Pacific Land
• Aslan Energy Capital
• BW Digital
• Changhae Development
• Chinachem Group
• CloudHQ
• Cyrus One
• Create Capital Viet Nam Joint-stock Company
• CURRENC Group
• DAMAC Digital
• Datagrid New Zealand
• DC Connects
• Doma Infrastructure Group
• Diode Ventures
• ESR
• Evolution data centres
• FIR HILLS
• FutureData
• GigaStream Toyama
• GreenSquareDC
• Global Telecommunications
• Haoyang Data
• Henox IT and Datacenters
• IGIS Asset Management
• Infracrowd Capital
• Inuverse
• ISPT
• Kakao Corp
• Lehr Consultants International
• MaNaDr Mobile Health
• THOMSON Computing - METAVISIO
• MARKHAM
• MegaSpeed AI
• OKESTRO
• Supernode
• Siagon Asset Management
• SGC energy
• SC Zeus Data Centers
• SEAX Global
• TCS & OpenAI
• ZDATA Group

KEY QUESTIONS ANSWERED:

1. How big is the APAC hyperscale data center market?

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

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

4. How much MW of power capacity is expected to reach the APAC hyperscale data center market by 2031?

5. What is the estimated market size in terms of area in the APAC hyperscale data center market by 2031?