Asia Pacific’s Digital Transformation Boosts Data Center

Asia Pacific’s Digital Transformation Boosts Data Center

Dublin, March 05, 2025 (GLOBE NEWSWIRE) — The “Asia Pacific Data Center Colocation Market – Forecasts from 2025 to 2030” report has been added to ResearchAndMarkets.com’s offering.

The Asia Pacific Data Center Colocation Market is set to reach $49.36 billion by 2030, up from $28.44 billion in 2025, growing at a CAGR of 11.6%. The market expansion is fueled by rising demand from SMEs, cloud adoption, IoT growth, and increasing digital transformation efforts across industries. India’s data center market is experiencing exponential growth, driven by AI, ML, big data, and e-commerce expansion. Key players like Equinix, Digital Realty, and AirTrunk are investing heavily in data center infrastructure across China, Japan, India, Australia, and South Korea, making APAC a major colocation hub.

Colocation facilities in data centers refer to the rental of space within a professional data center, allowing companies to utilize essential infrastructure – such as power, cooling, and network connectivity – without the need for owning and maintaining their own facilities. The increasing number of new data centers, along with regulatory support and positive developments, is driving the growth of internet penetration in APAC economies. Additionally, the rising adoption of IoT technologies, coupled with booming sectors like e-commerce, virtual entertainment, and healthcare, has further enhanced market demand.

The Asia Pacific region is expanding its share of the global e-commerce market, which reached US$2.9 trillion in 2022 and is projected to grow to US$6.146 trillion by 2030, accounting for over 50% of the global retail e-commerce market. The anticipated growth of the market is also supported by the expanding capabilities of 5G networks and higher levels of Industry 4.0 adoption in the coming years.

Growing Presence of Small and Medium-Sized Enterprises (SMEs):

  • The demand for data center colocation services is increasing among small and medium enterprises in the Asia Pacific region due to its cost-effectiveness, scalability, and flexibility. Colocation allows smaller companies to access high-quality infrastructure and services at a fraction of the cost compared to building and maintaining their own data centers. Many SMEs with limited budgets are recognizing the advantages of colocation services, which provide scalability as their infrastructure needs evolve. This solution offers enhanced reliability and security through robust security measures and advanced cooling systems.
  • According to Invoice Interchange statistics for 2024, Australia has approximately 2.5 million SMEs as of June 2023, spanning various industries such as retail, hospitality, construction, and professional services, making them a significant component of the business landscape.

Geographical Outlook of the APAC Data Center Colocation Market:

  • Exponential Growth in India: India’s data center colocation market plays a crucial role in the country’s digital transformation by providing reliable and scalable infrastructure for businesses across different sectors. Emerging technologies such as AI/ML, cloud computing, big data, and IoT are driving demand for colocation services that allow companies to meet growing IT requirements without incurring substantial capital expenditures. These facilities offer high-speed connectivity, low-latency networks, and strong security measures, making them essential for industries like communication, technology, e-commerce, and financial services.
  • The increasing investment in data centers by various companies in India is expected to further fuel market growth in the forecast period. For instance, in January 2024, Digital Realty announced the opening of its first Indian data center on a 10-acre campus capable of supporting up to 100 megawatts of critical IT load capacity in Chennai’s industrial hub. In summary, the APAC data center colocation market is poised for significant growth driven by rising demand from SMEs seeking cost-effective solutions, increased investment in digital infrastructure in India, and favorable regulatory conditions across the region. As businesses continue to embrace digital transformation and advanced technologies, colocation services will play a pivotal role in supporting their growth strategies.

Report Coverage:

  • Historical data & forecasts from 2022 to 2030
  • Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
  • Competitive Positioning, Strategies, and Market Share Analysis
  • Revenue Growth and Forecast Assessment of segments and regions including countries
  • Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
    • Equinix
    • Rackspace
    • Telehouse
    • Verizon
    • Colt Technology Services
    • CenturyLink
    • AirTrunk
    • Chindata Group
    • Digital Realty
    • KT Corporation
    • NEXTDC LTD
    • STT Global Data Centres India Private Limited C/o Tata Communications Ltd

Key Attributes:

Report Attribute Details
No. of Pages 102
Forecast Period 2025 – 2030
Estimated Market Value (USD) in 2025 $28.44 Billion
Forecasted Market Value (USD) by 2030 $49.36 Billion
Compound Annual Growth Rate 11.6%
Regions Covered Asia Pacific

The APAC Data Center Colocation Market has been segmented as following:

  • By Colocation Model
    • Retail Colocation
    • Wholesale Colocation
  • By End-User
    • Small Enterprises
    • Medium Enterprises
    • Large Enterprises
  • By Industry Vertical
    • Banking and Financial Services
    • Manufacturing
    • Communication and Technology
    • Healthcare
    • Energy
    • Government
    • Media and Entertainment
    • Others
  • By Country
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Others

For more information about this report visit

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  • Asian Pacific Data Center Colocation Market

            

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