Asia-Pacific Data Center Market Outlook 2021-2026: AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google Continue to Expand their Base with the Opening of Cloud Regions

News provided by

Feb 11, 2021, 11:00 ET

DUBLIN, Feb. 11, 2021 /PRNewswire/ -- The "APAC Data Center Market - Industry Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.

The APAC data center market share has been witnessing exceptional growth since the outbreak of the COVID-19 pandemic, which has increased the access to internet-related services aided by lockdowns and restrictions imposed by government agencies across the region. Colocation service providers witnessed a strong uptake of data center spaces by existing customers owing to the growth in demand during the pandemic.

Due to the emergence of a new business environment, cloud service providers and video conferencing service providers have significantly contributed toward colocation and data center services. In Japan, the data center construction witnessed no impact due to the pandemic, however, data center operators implemented stringent precautionary regulations for the safety of their employees.

Similarly, in India, a country-wide lockdown lasted for around 60 days with a majority of operations performed via online and remote mediums, which increased internet users by 25%. Hence, the market witnessed a strong spike in the announcement of new projects across India, China, Malaysia, and Japan in Q3 2020.

APAC Data Center Market Segmentation

The adoption of blade type servers is set to grow in China and Hong Kong. Over 90% of data centers in China have adopted blade servers for the high-density computing environment. The demand for supercomputers is also increasing with the adoption of digital currency in these countries. The IT infrastructure spending in Australia will be dominated by cloud-service providers, followed by enterprises, involving self-managed IT infrastructure solutions.

Over 50% of the business IT budget is spent on the migration to cloud-based services in Australia, with IaaS spending leading the chart. In India, a rise in the cloud, big data, IoT, and artificial intelligence technology by enterprises is a major driver for the IT infrastructure market. Around 70% of start-ups in India are adopting IoT technology, with healthcare and manufacturing segments attracting the highest investment.

Megaprojects in China & Hong Kong data center market are designed to be of Tier III and Tier IV standards, which are leading to a high deployment of 2N redundant UPS systems. Multiple data center facilities with a power capacity of more than 10 MW are implemented in Australia, which is increasing the adoption of over 500 kVA capacity UPS systems.

DRUPS systems are majorly adopted in the country. The demand for modular data center facilities deployed in Southeast Asian countries is high. The procurement of lithium-ion UPS is expected to grow in the region to avoid high OPEX on VRLA systems. The data center development is likely to be of higher capacity, typically over 5 MW, requiring the adoption of 2N redundant backup systems owing to challenges related to power fluctuations and outages.

In China and Hong Kong, a majority of data centers adopt a combination of air and water-based cooling techniques to cool down facilities. However, a few facilities are built to support free cooling techniques. Data centers in India mainly use air-based and few facilities operate using water-based cooling systems. However, data centers are not completely suitable for free cooling. Few states in the country support free cooling of up to 1,000 hours annually.

High air pollution levels in major cities across India could make free cooling an unfeasible option for operators. Most high-density environments are likely to consider water-based cooling systems, while small-scale deployments could operate through air-based cooling systems in the country.

A majority of data centers in Singapore are designed to adopt water-based cooling techniques. The growth of data center construction market in APAC will aid in the development of facilities that would comprise multiple chillers, cooling towers, and CRAH units with N+N redundant configuration.

In terms of general construction, China leads greenfield construction. Hong Kong is expected to witness largely brownfield developments due to the space shortage during the forecast period. A majority of the construction contractors are located in these countries. The increased interest to improve efficiency and reduce OPEX is driving data center operators to procure intelligent DCIM solutions for end-to-end monitoring of facilities in India.

Most data centers developed in Malaysia during the forecast period are expected to be greenfield. The market also has a strong potential for growth among modular data center projects. The labor cost in Malaysia is cheaper than in Singapore. However, the availability of a skilled workforce will be a major challenge among providers.

In the APAC region, several under-developed projects fall under the Tier III category, and the trend is expected to continue during the forecast period, with several operators likely to shift to the Tier IV category. In terms of colocation, these facilities will cost higher per rack basis than Tier I and Tier II facilities. Most new data centers are designed as Tier III standards with a minimum of N+1 redundancy.

Tier IV data centers are equipped with minimum 2N+1 redundancy in every infrastructure that makes the facility fault-tolerant, with some facilities having 2N+2 redundancy of infrastructures such as UPS systems and PDUs. Facebook, Apple, Microsoft, and Google are the major contributors to Tier IV data centers. These facilities generate more revenue for the APAC data center market, with focused investment on highly efficient cooling systems.

INSIGHTS BY VENDORS

AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google continue to expand their base with the opening of cloud regions in the APAC region and a strong physical presence in China, Singapore, Australia, and India.

These cloud service providers are the major adopters of high-density, mission-critical servers, storage infrastructure, and network infrastructure. The region is witnessing a massive increase in data usage by consumers through services offered by companies in the e-commerce, social media, and entertainment industries.

Digital services offered by the BFSI and government sectors are also key enablers for data growth in the APAC data center market.

KEY QUESTIONS ANSWERED

What is the value of the APAC data center market during the period 2021- 2026?
What key factors and market trends are anticipated to drive the Asia Pacific data center market growth?
What are the restraints that the vendors are facing which challenge the growth of the Asia data center market?
Who are the key players in the APAC IT infrastructure market?
What are the key market opportunities and threats faced by new entrants in the data center market?
Which regions are expected to offer the highest business opportunities and growth for vendors during the forecast period?

Market Dynamics

Market Opportunities & Trends

5G On Edge Data Center Investments
Growing Procurement Of Renewable Energy
Innovative Data Center Technologies
AI Enhances Liquid Immersion & Direct-To-Chip Cooling Adoption
Emergence Of Lithium-Ion To Replace VRLA Batteries In Data Centers
Automation Of Data Center Infrastructure
higher Adoption Of 200/400 GBE Switch Ports
NVME To Dominate In Flash Deployment

Market Growth Enablers

COVID-19 Effect On APAC Data Centers
Increasing Colocation Investment
Growing Construction Of Hyperscale Data Centers
Cloud Adoption Driving Data Center Market
M&A & Joint Ventures To Increase Data Center Growth In APAC
Increase In AI & ML Workloads In APAC Data Centers
Tax Incentives & Area Allocation To Increase Data Center Deployment
Increase In Deployment Of Submarine Cables

Market Restraints

Rise In Power & Network Outages
Security Challenges In Data Centers
Location Constraints For Data Center Construction

Key Data Center Critical (IT) Infrastructure Providers

Cisco
Dell Technologies
Hewlett Packard Enterprise (HPE)
Huawei
IBM
Inspur

Key Data Center Support Infrastructure Providers

ABB
Eaton
Rittal
Schneider Electric
STULZ
Vertiv
Caterpillar
Cummins

Key Data Center Contractors

AECOM
Arup Group
Aurecon Construction
CSF Group
DSCO Group
Gammon Construction
Larsen & Toubro (L&T)
PM Group
Studio One Design Limited
NTT FACILITIES Group

Key Data Center Investors

AirTrunk Operating
Digital Realty
Equinix
GDS Holdings
Keppel DC
NTT Communications
NEXTDC
STT TELEMEDIA GDC
Shanghai Athub
Qnet Shanghai (Shanghai Qnet Networking Technology)

Other Prominent Critical (IT) Infrastructure Providers

Arista
Atos
Broadcom
Extreme Networks
Hitachi Vantara
Inventec
Juniper
Lenovo
NEC
NetApp
Oracle
Pure Storage
Quanta Cloud Technology (Quanta Computer)
Super Micro Computer
Wistron Corporation (Wiwynn)

Other Prominent Data Center Support Infrastructure Providers

Airedale Air Conditioning
Alfa Laval
Asetek
Bosch Security Systems (Robert Bosch)
Cyber Power Systems
Delta Group
Euro-Diesel (KINOLT)
Green Revolution Cooling (GRC)
Hitech Power Protection
KOHLER (SDMO)
Legrand
Nlyte Software
Mitsubishi Electric Corporation
MTU On Site Energy (Rolls-Royce Power Systems)
Socomec Group
Trane (Ingersoll Rand)

Other Prominent Data Center Contractors

Chung Hing Engineers Group
AWP Architects
BYME Engineering Ltd.
Corgan
Cundall
DPR Construction
Faithful+Gould
Fortis Construction
Hutchinson Builders
ISG
Kienta Engineering Construction
Linesight
LSK Engineering
M+W Group (Excyte)
Nakano Corporation
Obayashi Corporation
Powerware Systems (PWS)
Sato Kogyo
Sterling and Wilson (Shapoorji Pallonji Group)
Red-Engineering

Other Prominent Data Center Investors

21Vianet (Century Internet Data Center)
AIMS Data Centre
Airtel (Nxtra Data)
Bridge Data Centres
BDx (Big Data Exchange)
Canberra Data Centers
Chayora
Chindata
Colt Data Centre Services (COLT DCS)
CtrlS
Global Switch
Iron Mountain (IO)
Pi DATACENTERS
Princeton Digital Group (PDG)
Regal Orion
Space DC
SUNeVison (iAdvantage)
Sify Technologies
Tenglong Holdings Group (Tamron)
Yotta Infrastructure

For more information about this report visit https://www.researchandmarkets.com/r/7o711r

Media Contact:

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1904
Fax (outside U.S.): +353-1-481-1716

SOURCE Research and Markets