This market research report on APAC data center colocation market offers analysis on market size & forecast by:
Data Center Colocation Investment Analysis | 2017-2023
Data Center Colocation Service Analysis | 2017-2023
Vendor Market Share Analysis 2017
The report covers details on market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by investment, by service type, and by geography.
The exponential proliferation of the internet and the growing consumption of internet-based services such as e-commerce is driving the growth of the APAC data center colocation market. The government and telecommunication service providers initiatives to improve internet connectivity in emerging countries such as Indonesia, Thailand, the Philippines, Vietnam, Cambodia, and countries in the Pacific Island will lead to the construction of datacenters in APAC market. APAC is the fastest growing region in the global datacenter market and is attracting investments from cloud service and colocation providers in the region. The technological advancements across industries are driving the demand for colocation and managed services in the APAC market. The growth in business digitalization and increased smartphone penetration are the major factors attributing to the growth of the APAC market. The facility operators are providing colocation, managed services, interconnection, and cloud connectivity solutions to attract a maximum number of consumers in the market. The increasing number of M&A activities specifically ST Telemedia’s acquisition of a stake in Tata Communication datacenters in India and GDS Holdings in China is boosting investments in the APAC market. The rising focus on reducing the CAPEX and OPEX across facilities in the region will result in operating green facilities, high-density IT infrastructure, and hybrid infrastructure services in the market. The deployment of edge datacenters across countries such as China, Hong Kong, and Singapore will augment the development of the APAC data center colocation market.
The BFSI, cloud service providers, media and entertainment, and government agencies are among the largest customers for colocation providers in the APAC market. In 2017, the APAC market witnessed over 80 new colocation facilities and expansion projects that opened or were under construction. Top vendors such as Equinix, Digital Realty, Switch, NTT, ST Telemedia, VADS BERHAD, PLDT, Cyfuture, Pi DATACENTERS, Colt, GDS Services, NextDC, and Global Switch are the largest investors in the market. The APAC data center colocation market is projected to witness investments worth around $10 billion by 2023, growing at a CAGR of more than 12% during 2017-2023. The research report offers market size analysis regarding colocation services during the forecast period.
The growing adoption of high-performance infrastructure and rack power density will revolutionize the APAC data center colocation market. The increasing demand for cloud computing, Internet of Things (IoT), and big data analytics solutions from several industry verticals such as BFSI, healthcare, government, and heavy industries are fueling the computing power in facilities across the APAC market. Several enterprises are involved in the procurement of high-performance computing (HPC) systems to process complex application workloads involving machine learning and artificial intelligence (AI) in the APAC data center colocation market. The growing adoption of converged and hyper-converged solutions and virtualization will boost the rack power density to an average of 8-10kW in the APAC market during the forecast period. The leading operators are involved in developing innovative designs that can support the growth of the rack power density and meet dynamic consumer demands over the next few years. The integration of facilities with power and cooling infrastructure that supports rack density up to 40 kW and liquid immersion cooling that support density up to 200 kW will transform the APAC data center colocation market.
This market research report includes a detailed segmentation of the market by investment, service type, and geography.
APAC Data Center Colocation Market – By Investment
Hyperscale projects in APAC powered by renewable energy will drive investments in wholesale data center spaces in the APAC data center colocation market
The APAC data center colocation market by investment is segmented into electrical infrastructure, mechanical infrastructure, and general construction. Electrical infrastructure segment dominated majority of the market share in 2017, growing at a CAGR of over 12% during the forecast period. The market research report offers market share analysis of this segment by power capacity (MW) and square feet area during 2017-2023. The growing number of modular facilities deployments across Southeast Asia (except Singapore), Pakistan, Bangladesh, and Sri Lanka are propelling the growth of this segment in the APAC market. Around 50% of the hyperscale projects in the region are powered by renewable energy sources.
Furthermore, many countries in the APAC data center colocation market are targeting at 20% of their electricity will generate through renewable power by 2050. The datacenters in India, Australia, and the Southeast Asian region are installing on-site solar cells or wind energy to power the facilities in the market. The adoption of free cooling chillers and evaporative coolers in Northern China, Japan, New Zealand, and South Korea will drive the demand for innovative mechanical infrastructure in the APAC data center colocation market. Several operators are following the turnkey approach to design new facilities that reduce construction time significantly along with the use of modular infrastructure, standard procedures for deployment, and disciplined project management in the market.
APAC Data Center Colocation Market – By Service Type
Adoption of pre-fabricated datacenter solutions will likely threaten the growth of retail and wholesale colocation in the APAC data center colocation market
The service type segment in the APAC data center colocation market is classified into retail and wholesale. The retail colocation segment occupied more than half of the market share in 2017, growing at a CAGR of more than 9% during the forecast period. The growing adoption of in-house pre-fabricated datacenter solutions by enterprises and government agencies likely to affect theAPAC data center colocation market. However, in terms of retail colocation, organizations adopting ¼ and ½ rack colocation spaces are likely to decline as enterprises’ IT requirements are proliferating, and the need for additional data processing capacity is growing exponential YOY for customers. Retail colocation solutions provide more control over operations at reduced CAPEX and will help vendors gain a larger APAC market share. The lack of fundamental prerequisites such as high-speed fiber connectivity and disaster recovery locations to operate in-house pre-fabricated facilities will drive the demand for managed retail colocation in the market. Several enterprises in developing regions such as Southeast Asia are adopting retail colocation services thereby, propelling the growth of the APAC data center colocation market. The adoption of single or multiple racks with the total capacity of less than 300 kW will boost revenues in this segment in the APAC market. The increasing construction of wholesale colocation spaces in China, Hong Kong, Australia, Singapore, and India will contribute to the development in the APAC market.
APAC Data Center Colocation Market – By Geography
Deployment of multiple edge locations in China and India drive the growth of the APAC data center colocation market after 2020
The APAC data center colocation market by geography is categorized into China & Hong Kong, Australia & New Zealand, Southeast Asia, & Rest of APAC. China & Hong Kong dominated more than 1/3rd of the total market share in 2017, growing at a CAGR of about 17% during the forecast period. Hong Kong is one of the main emerging hubs in the region with a facilities development area of around one million square feet YOY. The occupancy rate of colocation facilities across China is more than 70% in 2017. The increasing deployment of multiple edge locations across China and Hong Kong is one of the primary factors that will fuel the investments in the APAC data center colocation market in the next few years. For instance, China Unicom has planned to establish thousands of edge datacenters across China in the coming years. The exponential demand for hybrid infrastructure services will lead to an increase in construction of colocation facilities and prompt regional cloud service providers to establish multiple availability zones across the country in the market. The anti-pollution measures undertaken by the government of China will lead innovations in cooling techniques and systems adopted operators in the market. The adoption of cloud computing across industries in Australia will result in the construction of additional facilities in the APAC market.
Key Vendor Analysis
The APAC data center colocation market is witnessing increased investments by existing players and the entry of new service providers. Leading cloud service providers are partnering with colocation providers to open cloud regions in multiple APAC countries. International datacenter operators are investing in the construction of new projects to attract new consumers to the APAC market. The development of mega and modular facilities will create lucrative opportunities for the vendors operating in the market. The introduction of modular systems that increase flexibility, efficiency, and reduce the CAPEX of developing new facilities will enable service providers to reduce the colocation cost and become competitive in the APAC data center colocation market.
The major vendors in the APAC data center colocation market are:
Other prominent vendors in the APAC data center colocation market consist of Bharti Airtel (NXTRA DATA),Biznet Data Center, BSNL Data Center, China Mobile, China Unicom, CMC Telecom, Chunghwa Telecom (CHT),Colt Data Centre Services (COLt DCS), Cyxtera Technologies, Datacom, Digital Realty, Fujitsu, Keppel DC, KT Corporation, NEXTDC, OneAsia Network Ltd., PCCW Solutions, Philippine Long Distance Telephone (PLDT), Pi DATACENTERS, PT Telkom Group (Telin), Reliance Communications (Global Cloud Xchange),Sify Technology,Sinnet, ST Telemedia Global Data Centres (STT GDC), SUNeVision (iAdvantage), Telehouse, Telstra Corporation, VADS Berhad, VNTT, and Vocus Communications.
Key market insights include
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