The Asia-Pacific (APAC) region is a global leader in digital transformation, driving unprecedented demand for data center infrastructure. According to the latest APAC Data Center Construction Market Report published on May 5, 2025, the market was valued at USD 26.25 billion in 2024 and is projected to reach USD 52.72 billion by 2030, growing at a compound annual growth rate (CAGR) of 12.32%. This growth is fueled by government support, advancements in submarine cable connectivity, significant investments from cloud and technology service providers, and the widespread adoption of artificial intelligence (AI). For data center experts and investors, understanding the market’s trends, key players, and technological advancements is crucial for seizing opportunities in this dynamic sector.
Market Overview
The APAC data center construction market is experiencing robust growth due to the region’s rapid digitalization and increasing reliance on cloud-based services. The market’s valuation of USD 26.25 billion in 2024 reflects a surge in demand for digital infrastructure, with projections indicating a doubling to USD 52.72 billion by 2030. This growth is supported by over USD 10 billion in investments from key players and government policies promoting data center development. The region accounts for approximately 40% of the global colocation market, highlighting its significance as a global hub for data center capacity (CBRE Data Centre Trends).
Note: Some reports suggest different market sizes, such as USD 10.54 billion in 2024 (Mordor Intelligence) or USD 19.50 billion in 2023 (Arizton). These discrepancies likely stem from varying scopes, methodologies, or included countries. The USD 26.25 billion figure from the May 2025 ResearchAndMarkets.com report is the most recent and aligns with the provided data, suggesting a broader inclusion of construction activities.
Key Market Trends
Edge Data Centers
Edge data centers are transforming the APAC data center landscape by processing data closer to end-users, reducing latency for real-time applications like IoT, autonomous vehicles, and 5G-enabled services. The growing adoption of 5G networks is a significant driver, increasing data generation and necessitating low-latency infrastructure. For instance, PlanckDot raised USD 1.6 million for an edge data center in India in February 2024, highlighting investment in this segment. Edge data centers are poised to enhance user experiences and support the digital economy.
AI-Ready Facilities
The rise of AI and machine learning is reshaping data center requirements, with AI-ready facilities designed to handle high-density computing workloads. These data centers feature advanced cooling systems, robust networking, and scalable power capacities. In September 2024, Blackstone and ESR developed an AI-based data center in Japan, reflecting the trend toward specialized facilities.
Renewable Energy Integration
Sustainability is a top priority, with governments and operators adopting renewable energy sources to meet environmental goals. New Zealand, for example, aims for 100% renewable electricity by 2030 and net-zero greenhouse gas emissions by 2050. In July 2024, ST Telemedia Global Data Centres became the first in Singapore to use 50,000 liters of hydrotreated vegetable oil (HVO) fuel in generators, marking a shift toward sustainable fuel alternatives (Cushman & Wakefield Update).
5G Technology
The rollout of 5G networks is revolutionizing the data center landscape by enabling faster internet speeds, wider bandwidth, and reduced processing times. This technology drives increased data generation, necessitating robust and distributed data center infrastructure. The synergy between 5G and edge computing is significant, enabling real-time data processing closer to the source.
Major Players and Their Contributions
Prominent companies are driving the market through substantial investments and innovative projects. Key players include:
- AirTrunk: Expanding its hyperscale data center platform, AirTrunk was selected for Singapore’s 80MW data center trial in 2025 and acquired by a Blackstone-led consortium for USD 16 billion in 2024.
- NTT DATA: A leader in the APAC colocation market, NTT DATA signed a 70MW solar energy power purchase agreement in June 2022 to reduce carbon emissions.
- Equinix: Dominant in Singapore, Australia, and Hong Kong, Equinix was also selected for Singapore’s 80MW trial, reinforcing its role in digital transformation.
Other major operators include Alibaba Group, Amazon Web Services (AWS), Big Data Exchange (BDx), CDC Data Centres, China Unicom, China Mobile International, China Telecom, Chindata Group, Digital Realty, GDS Services, Google, Keppel Data Centres, Microsoft, NEXTDC, Princeton Digital Group (PDG), and ST Telemedia Global Data Centres.
Geographical Analysis
The APAC data center construction market is geographically diverse, with significant investments across multiple countries:
- China: Dominates the market due to its vast population, rapid digitalization, and supportive government policies.
- Australia: A prominent market driven by digitalization, government initiatives, and strong connectivity.
- Japan: Supported by government subsidies, such as USD 4.8 billion for TSMC’s semiconductor plant in Kumamoto in February 2024.
- India: Experiencing exponential growth due to AI, big data, and e-commerce, with new facilities like Ansys’ HPC data center in Pune (October 2024).
- Southeast Asia: Malaysia and Indonesia are emerging hubs, with Singapore’s demand spilling over to these countries.
Opportunities and Challenges
Opportunities
- For Experts: Demand for specialized skills in designing edge and AI-ready facilities offers opportunities to lead innovation.
- For Investors: Strong growth projections in high-demand regions like China, India, and Southeast Asia present significant investment potential.
Challenges
- Regulatory Navigation: Diverse regulatory environments across APAC countries require careful planning.
- Sustainability Goals: Meeting ambitious environmental targets, such as carbon neutrality, poses operational challenges.
- Cost and Supply Constraints: Construction cost inflation and power supply limitations in markets like Singapore and South Korea are steering projects toward emerging economies (Mordor Intelligence).
The APAC data center construction market is poised for significant growth, with a projected value of USD 52.72 billion by 2030. Trends such as edge computing, AI-ready facilities, renewable energy integration, and 5G technology are driving the industry forward. Major players like AirTrunk, NTT DATA, and Equinix are leading investments, with China at the forefront. For data center experts and investors, the region offers immense opportunities, though challenges like regulatory navigation and sustainability goals require strategic approaches. Staying informed about these trends and key players will be essential for thriving in this dynamic sector.
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