APAC Data Center Market Growth Insights, Size & Share Analysis, Investment Forecast 2031

By Facility Type, the Colocation Data Center segment accounted for the largest share of the APAC data center market, supported by the growing demand for flexible, scalable, secure, and reliable data center infrastructure. The increasing adoption of cloud computing, digital services, AI, and enterprise digital transformation is encouraging organizations to outsource their data center infrastructure to colocation providers, enabling them to reduce capital investments and improve operational flexibility.

Colocation providers offer data center space, rack cabinets, power, cooling, connectivity, physical security, and other supporting infrastructure based on the specific requirements of customers. These services allow businesses to deploy and manage their IT infrastructure without investing heavily in building and operating dedicated data center facilities. The segment primarily includes retail and wholesale colocation services, catering to organizations with different infrastructure, capacity, and workload requirements. The growing presence of enterprises, cloud service providers, and digital businesses in Saudi Arabia is further supporting demand for colocation facilities and contributing to the expansion of the segment.

By Infrastructure, the IT Infrastructure segment held the largest share of the APAC data center market, supported by the increasing demand for computing, data storage, and high-speed connectivity across the region. IT infrastructure forms the core of data center operations and enables organizations to efficiently manage growing volumes of data and digital workloads. The segment primarily includes server infrastructure, storage infrastructure, and network infrastructure, which work together to support data processing, storage, and communication requirements. The rapid adoption of cloud computing, AI, big data, IoT, and digital services is further driving investments in advanced IT infrastructure across APAC.

By IT Infrastructure, the Server segment held the largest share of the APAC data center market, accounting for approximately 52% in 2025. The segment is witnessing strong demand as data center operators and enterprises expand their computing capabilities to support growing digital workloads. The rapid pace of digital transformation, increasing adoption of cloud computing, rising demand for artificial intelligence, and deployment of 5G connectivity are driving investments in advanced server infrastructure across APAC.

The growing adoption of AI workloads is further increasing the need for high-performance and scalable servers. For instance, Dell Technologies delivered its PowerEdge XE-Series servers to Naver Cloud, a subsidiary of Naver Corp., to support its HyperCLOVA X GenAI platform. The deployment is aimed at strengthening data sovereignty and supporting scalable multilingual AI solutions, highlighting the increasing role of advanced server infrastructure in APAC’s expanding AI ecosystem.

By Electrical Infrastructure, the UPS segment accounted for the largest share of the APAC data center market, driven by the increasing requirement for reliable and uninterrupted power supply in data center facilities. The continued expansion of data center capacity and growing investments in digital infrastructure are creating strong demand for UPS systems, which help maintain continuous operations and safeguard critical IT equipment against power interruptions and fluctuations.

Data center operators are also gradually adopting Li-ion battery-based UPS systems as an alternative to conventional lead-acid batteries. These systems offer benefits such as improved energy efficiency, lower maintenance requirements, and enhanced sustainability. For example, Equinix’s SY1 facility in Sydney and ME1 facility in Melbourne feature N+1 UPS redundancy, strengthening power availability and ensuring greater operational resilience for critical data center infrastructure.

In Mechanical Infrastructure, the Cooling System segment dominated the APAC data center market in 2025, driven by the increasing need for efficient thermal management as data centers expand their computing capacity and support high-density workloads. Advanced cooling systems are essential for maintaining optimal operating temperatures, improving equipment reliability, and ensuring the continuous performance of critical IT infrastructure.

Data center operators are increasingly adopting redundant and advanced cooling solutions to enhance reliability and manage rising heat loads. For instance, Vantage Data Centers’ TPE1 facility features N+2 redundant cooling infrastructure with a closed-loop chilled water system, while AIMS Data Centre uses chilled water cooling systems with hot/cold aisle containment to maintain stable temperatures across high-density racks in its Malaysian data center

In Cooling Systems, the Chiller Units segment dominated the APAC data center market in 2025, driven by the growing need for efficient and reliable temperature management in data center facilities. Chiller units play a critical role in maintaining optimal operating temperatures and are commonly integrated with cooling towers, dry coolers, or condensers to remove heat generated by IT equipment and maintain stable conditions within the facility.

The adoption of reliable and energy-efficient chiller systems is increasing as data centers expand their capacity and support high-density workloads. For instance, Equinix’s ME2 data center in Melbourne is equipped with N+1 redundant air-cooled adiabatic chillers, providing additional cooling capacity and enhancing the reliability of the facility’s thermal management infrastructure.

In Cooling Technique, the Liquid-Based segment dominated the APAC data center market in 2025, driven by the growing need for efficient thermal management as rack power densities and computing workloads continue to increase. Liquid-based cooling techniques include chilled-water-based cooling, direct liquid cooling, and immersion cooling, offering effective heat dissipation for high-density data center environments.

The adoption of chilled water cooling systems is expected to increase in the coming years as rising rack power densities generate greater heat loads and require more efficient cooling solutions. The growing deployment of AI and other high-performance computing applications is further supporting the demand for advanced liquid-based cooling technologies across APAC data centers.

In General Construction Infrastructure, the Core & Shell Development System segment dominated the APAC data center market in 2025, supported by the increasing development of new data center facilities across the region. The continued expansion of greenfield data centers and AI-focused facilities across APAC is driving demand for core and shell construction, which forms the structural foundation of these large-scale projects.

The growing complexity of data center developments is also increasing the scope of work for construction contractors. In addition to building the core facility, contractors are increasingly involved in the on-site installation of power substations and renewable energy power generation systems, particularly as operators focus on securing reliable and sustainable power for new data centers.

By Tier Standards, the Tier III segment dominated the APAC data center market in 2025, supported by the growing demand for reliable and resilient data center infrastructure. Tier III data centers are designed with a minimum of N+1 redundancy, with configurations that can be upgraded to up to 2N+1 redundancy as capacity requirements increase. As of December 2025, the APAC region had more than 800 colocation facilities designed to meet Uptime Institute Tier III specifications, highlighting the strong adoption of Tier III standards across the region.