APAC Hyperscale Data Center Market to Attract $63 Billion Investment by 2027. High Adoption of 400 GBE Switch Ports Propelling the Market Growth - Arizton

The APAC hyperscale data center market was valued at $42 billion in 2021 and is expected to reach $63 billion by 2027.


Chicago, May 12, 2022 (GLOBE NEWSWIRE) -- According to Arizton’s latest research report, the APAC hyperscale data center market will grow at a CAGR of 7.13% during 2022-2027. The APAC market witnessed an addition of over 100 hyperscale data center facilities and expansion projects in 2021.

In 2021, the investment in higher-speed Ethernet switches remained strong, which was mostly driven by the demand from hyperscale data centers, cloud providers, and an increase in data center investments. With hyperscale facilities growing, the adoption of these high-capacity switches will surpass that of the current 100 GbE switches. In the recent years, an increase in the number of data centers will also increase the demand for high-speed networking hardware, including switches with 400 GbE port capacity in data centers.

Shanghai Atrium (AtHub), Chayora, Ningsuan Technology Group (Tibet), GDS Services, OneAsia Network, and Tenglong Holdings Group are the colocation providers involved in the construction of hyperscale data centers. The construction of mega data centers is likely to grow due to the high demand for wholesale colocation spaces during the forecast period.

APAC Hyperscale Data Center Market Report Scope

Report AttributesDetails
MARKET SIZE (2021)$42 billion
MARKET SIZE (2027)$63 billion
CAGR7% (2022-2027)
BASE YEAR2021
FORECAST YEAR2022-2027
MARKET PARTICIPANT COVERAGE27 Investors, 21 IT Infrastructure Vendors, 24 Support Infrastructure Vendors, 26 Construction Contractors, 8 New Market Entrants
GEOGRAPHICAL COVERAGEChina, Japan, Australia, Singapore, India, Hong Kong, South Korea, Other Southeast Asia, Rest of APAC

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APAC is currently one of the most dynamic data center markets across the globe, with the increasing investments from hyperscale operators. Several operators are investing in the expansion of existing facilities as well as the construction of new facilities across the region. Cloud service providers such as Amazon Web Services, Tencent, Alibaba, Microsoft, and Google have increased their presence in the region by opening several cloud regions and with some upcoming projects.

Key Highlights

  • APAC has witnessed unprecedented growth in hyperscale data centers over the last few years, with an addition of over 100 hyperscale facilities with a core & shell IT capacity of over 15 MW witnessed in 2021.
  • Cloud service providers such as AWS, Microsoft, Google, Huawei, and Alibaba are increasing their reach in APAC by opening multiple cloud regions. Significant investment by these operators is also driving the wholesale colocation market in APAC.
  • Major colocation operators investing in hyperscale facilities in APAC include GDS Services, Digital Realty, Equinix, Chindata, AirTrunk Operating, Colt Data Centre Services, and ST Telemedia Global Data Centres, among others.
  • China is the biggest contributor to the hyperscale market in APAC, with a share of over 40%, followed by countries like Japan, Hong Kong, Australia, and Singapore, and India. Countries like Indonesia, Malaysia, the Philippines, South Korea, New Zealand, and Thailand are emerging hyperscale markets to look out for.
  • APAC based hyperscale operators are working towards certain renewable energy targets. In 2020, Chunghwa Telecom reduced its carbon emissions by 53.45 kgs and targets to reach energy consumed by data centers by renewable energy by 20% in coming years

Segmentation Analysis

Infrastructure

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

IT Infrastructure

  • Server
  • Storage
  • Network

Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Cooling System

  • Chiller Units
  • Cooling towers, condensers & dry coolers
  • Economizers & Evaporative coolers
  • Other Cooling Units

Cooling Technique

  • Air-Based Cooling
  • Liquid-Based Cooling

General Construction

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

Geography

  • APAC
    • China
    • Japan
    • Australia
    • Singapore
    • India
    • Hong Kong
    • South Korea
    • Other Southeast Asia
    • Rest Of APAC

Vendors insights

Major brands have experienced strong growth in the adoption of server solutions in the APAC market. The demand of the servers has grown in the past year through the higher deployment of infrastructure for artificial intelligence and big data analytics workloads. Also, the demand for converged and hyperconverged solutions is experiencing strong growth in the APAC hyperscale data center market. Hewlett Packard Enterprise witnessed a strong demand for its mission-critical server product portfolio. The average selling price of servers has increased due to the rising cost of components.

The hyperscale data center market is shifting to high performance computing (HPC) and mission-critical server solutions. The adoption of converged and hyperconverged server systems will grow by around 20% during the forecast period, with the demand for high capacity and efficiency. The increasing in demand for converged and hyperconverged servers will create lucrative growth opportunities for the market vendors.

Prominent IT Infrastructure Vendors

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Extreme Networks
  • Hewlett Packard Enterprise (HPE)
  • Hitachi Vantara
  • Huawei Technologies
  • IBM
  • Inspur Group
  • Inventec
  • Juniper Networks
  • Lenovo
  • NEC
  • NetApp
  • Oracle
  • Pure Storage
  • Quanta Cloud Technology
  • Supermicro
  • Wistron (Wiwynn)

Prominent Support Infrastructure Vendors

  • ABB
  • Alpha Laval
  • Airedale International Air Conditioning
  • Asetek
  • Bosch Security and Safety Systems (Robert Bosch)
  • Caterpillar
  • Condair group
  • Cummins
  • Delta Group
  • Eaton
  • Green Revolution Cooling
  • HITEC Power Protection
  • KOHLER
  • Legrand
  • Nlyte Software
  • Nortek Air Solutions manufactures
  • Mitsubishi Electric
  • Rolls-Royce Power Systems
  • Piller Power Systems
  • Rittal
  • Schneider Electric
  • STULZ
  • Trane (Ingersoll Rand)
  • Vertiv Group

Prominent Construction Contractors

  • AECOM
  • ARUP
  • Aurecon
  • AWP Architects
  • BYME Engineering
  • Chung Hing Engineers
  • Corgan
  • CSF Group
  • Cundall
  • DPR Construction
  • DSCO group
  • Faithful+Gould
  • Fortis Construction
  • Gammon Construction
  • Australia Hutchinson Builders
  • ISG
  • Kienta Engineering Construction
  • Larsen & Toubro Construction (L&T)
  • Linesight
  • Nakano
  • NTT FACILITIES
  • Obayashi
  • PM Group
  • Red (Engie Impact)
  • Sterling and Wilson
  • Studio One Design

Prominent Data Center Investors

  • 21Vianet
  • Bharti Airtel Limited
  • AirTrunk Operating
  • Apple
  • Amazon Web Services (AWS)
  • BDx (Big Data Exchange)
  • Bridge Data Centres
  • Canberra Data Centres
  • Chayora
  • Chindata
  • Colt Data Centre Services
  • CTRLS Datacenters
  • Digital Realty
  • Equinix
  • GDS Services
  • Global Switch
  • Keppel Data Centres
  • NEXTDC
  • NTT Global Data Centers
  • Pi Data Centers
  • Princeton Digital Group (PDG)
  • Regal Orion
  • Shanghai Atrium (AtHub)
  • SpaceDC
  • ST Telemedia Global Data Centres
  • Tenglong Holdings Group (Tamron)
  • Yotta Infrastructure Solutions (Hiranandani Group)

New Entrants in APAC Hyperscale Market

  • Adaniconnex
  • Data Center First
  • Hickory
  • Mantra Data Centers
  • Pure Data Centres
  • Stratus DC Management
  • Vantage Data Centers
  • Yondr

Explore our data center knowledge base profile to know more about the industry. 

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