Dublin, July 13, 2026 (GLOBE NEWSWIRE) -- The "APAC Data Center Construction Market - Industry Outlook & Forecast 2026-2031" has been added to ResearchAndMarkets.com's offering.
The APAC data center construction market is poised to grow at a CAGR of 15.87% from 2025 to 2031, driven by investments in AI-ready facilities and increased demand for hyperscale and colocation data centers.
Investment Highlights
- EdgeConneX launched an AI-ready data center project in Osaka, Japan, with Kagoya Asset Management, covering 1.4 million sq ft, expected to be operational by 2028.
- ESR began the second phase of the ESR Kwai Chung Data Center in Hong Kong, aiming to deliver a 290 thousand sq ft white-floor area by 2028.
Power and Energy Insights
- AirTrunk announced the OSK2 data center campus in Osaka, Japan, with a 100 MW power capacity.
- India remains competitive with industrial electricity rates of $0.07 to $0.12 per kWh in 2025, lower than other APAC countries.
Market Segmentation and Trends
- Hyperscale data center investments have risen 15.70% from 2024, with Amazon Web Services investing $7 billion to bolster India's cloud infrastructure.
- Colocation centers accounted for 78.48% of investments in 2025, with Equinix completing a $201 million facility in Johor, Malaysia.
- Digital Edge DC plans a $4.5 billion AI-optimized data center in Jakarta, Indonesia, highlighting the sector's growth.
- Investments in sustainable infrastructure, such as lithium-ion batteries and biofuel generators, are increasing.
- Liquid cooling techniques, essential for managing AI and HPC workloads, are expected to grow from 55.2% investment shares in 2025 to 59% by 2031.
- High-density racks (60 kW to 200 kW) and intelligent security systems are critical for modern data centers.
- Key software investment includes DCIM/BMS for managing power consumption and operational efficiency.
Digital Transformation Impact
- APAC's rapid digital transformation boosts the need for data center infrastructure, spurred by cloud computing, e-commerce, and AI services.
- In 2025, FPT Software partnered with Taiwanese banks to advance digital services, highlighting the regional momentum.
AI and Data Centers
- AI integration across industries is fueling data center investments. Alibaba plans to invest $69.05 billion in China's AI infrastructure by 2029.
- Increased demand for liquid cooling techniques aligns with rising AI workloads requiring efficient thermal management.
Adoption of Emerging Technologies
- The adoption of liquid cooling in APAC is expected to rise, with Princeton Digital Group initiating advanced cooling technologies for the JC3 campus.
- Submarine cable investments by companies like Google will enhance data transmission, bolstering data center demand.
Geographical Leaders and Investments
- China led the market in 2025 with a 53.25% power capacity share, projected to exceed 52.98% in 2031. India and Australia followed with notable investments in data centers.
- Japan plans to invest $65 billion in AI infrastructure by 2030, highlighting government support for the sector.
- Emerging markets like Malaysia and Indonesia are gaining attraction for data center development amid challenges in primary hubs like Singapore.
Prominent Market Entities
- Colocation and hyperscale companies such as Equinix, Amazon Web Services, Alibaba, and Microsoft are leading investments in APAC.
- Construction contractors like AECOM and Arup, along with support infrastructure providers like ABB and Schneider Electric, drive sector growth.
The APAC data center construction market is set for substantial growth driven by digitalization, AI advancements, and sustainable infrastructure investments. Continued investment in emerging markets and technologies promises a robust trajectory for the future.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 473 |
| Forecast Period | 2025-2031 |
| Estimated Market Value (USD) in 2025 | $34.65 Billion |
| Forecasted Market Value (USD) by 2031 | $83.88 Billion |
| Compound Annual Growth Rate | 15.8% |
| Regions Covered | Asia-Pacific |
For more information about this report visit https://www.researchandmarkets.com/r/t9k04m
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