Asian data centre spending set to hit $32B mark by 2023

Asian data centre spending set to hit $32B mark by 2023

Asia Pacific will account for nearly 30 per cent of global data centre market

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The data centre market in Asia Pacific is forecast to reach US$32 billion by 2023, behind only North America in terms of regional revenue.

According to GlobalData findings, the surge in spending during the next four years will stem from enterprise customers “increasingly migrating” existing resources to data centres to “reap benefits from data”.

By 2023, Asia Pacific will account for nearly 30 per cent of the global data centre market, behind North America with 34.2 per cent but ahead of Western Europe on 24 per cent.

“The data centre and hosting market growth in Asia Pacific will be driven by growing demand for cloud services and digitisation from both enterprises as well as the investors,” said Sunil Kumar Verma, lead analyst, GlobalData.

“The Asia Pacific region provides the leading vendors with unique benefits in terms of costs, continuous investment in connectivity infrastructure upgrades and capability to serve broader set of customer requirements in their pursuit for digital transformation.”

Credit: GlobalData

Geographically speaking, Verma cited China as the largest market, accounting for approximately 36 per cent of regional investment, followed by Japan and Australia with 22 per cent and 8.3 per cent respectively.

“The region is expected to witness increased interest from the leading vendors to leverage the existing opportunity in the region,” Verma added.

For example, in early 2019, Chayora opened first of its planned nine data centres in China, while Alibaba opened its second data centre in Japan and Indonesia. Meanwhile, AWS launched an Asia Pacific (Hong Kong) data centre region in April 2019, in addition to AirTrunk unveiling a second data centre in Sydney in November 2019.

“Investment will continue in new data centre projects by existing and new entrants with a view to expand their presence in the region and serve additional customers,” Verma said. “Additionally, with the commercial availability of 5G services in the next 1-2 years, data consumption is expected to grow multiple-folds.

“This will result in constant connectivity requirements as well as data centre supported features, for supporting the critical business applications and activities of the enterprises.”

Tags GlobalData

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