The growing number of internet users, rising smartphone penetration, and increasing use of social media, adoption of public and hybrid cloud services, and enterprises migrating from on-premises to colocation data centers are major drivers for the growth of the APAC data center market.
The APAC region witnessed investment in around 110 data center projects in 2020. Major investors include Equinix, Digital Realty, AirTrunk Operating, Colt Data Centre Services, Keppel Data Centres, 21Vianet, GDS Services, NTT Global Data Centers, Tenglong Holdings Group, and NEXTDC, among others.
New entrants such as Stratus DC Management, Digital Edge DC, Kepstar Data Centre Management (Cambodia), and Mantra Data Centers (India), will deploy data centers and add a sizable contribution to the market in coming years. For instance, Mantra Data Centers plans to invest USD 1 billion in data centers across India in coming years.
Within APAC, the China & Hong Kong market is the major power capacity contributor, adding over 55% of the overall capacity in 2020, followed by countries such as India, Australia and New Zealand, Japan, and Southeast Asia.
The APAC region faces significant power outages in India and countries in Southeast Asia, which is prompting the adoption of more efficient power infrastructure in a higher redundant configuration for backup power.
The power infrastructure in the data center has also evolved significantly with modules that contain UPS systems and generators being containerized. Vendors such as ABB, Delta Power Solutions (Delta Group), Eaton, Huawei Technologies, Rittal, and Schneider Electric offer modular power solutions in APAC, including power skids, electrical houses, power containers, and power modules.
Market Size & Forecast by Revenue | 2020−2026
Market Size & Forecast by Power Capacity (MW) | 2020−2026
Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
Market Segmentation – A detailed analysis by electrical infrastructure, UPS systems, generators, tier standards, and geography
Competitive Landscape – 7 key vendors and 45 other vendors
UPS systems are installed across three major locations in a data center: centralized (overall facility), row-level, and rack-level. However, the placement of these systems is highly dependent on the facility design. In terms of adoption, the use of 750−1,500 kVA systems has increased along with a contribution from <500 kVA UPS systems.
Currently, market vendors are offering multiple generators sets with a capacity of <1 MW. However, the use of these systems is highly dependent on the power consumed by data centers. Generators with a power capacity of <1 MW are mostly adopted in modular data center deployments.
Tier II data centers have minimum redundancy. The redundancy of Tier II data centers in power infrastructure is mostly N+1. Every other infrastructure is identified to be working on a single power delivery path with no redundancy in most cases. These types of data centers are mostly on-premises deployments, which run non-critical applications.
APAC Data Center Power Market by Electrical Infrastructure
Transfer Switches & Switchgears
Power Distribution Units
Other Electrical Infrastructure
APAC Data Center Power Market by UPS System
<500 kVA UPS Systems
500-1,000 kVA UPS Systems
>1,000 kVA UPS Systems
APAC Data Center Power Market by Generators
<1 MW Generators
1-2 MW Generators
>2 MW Generators
APAC Data Center Power Market by Tier Standards
Tier I & Tier II
APAC Data Center Power Market – Dynamics
The data center market in APAC is witnessing significant growth with the rising adoption of technology and high internet penetration. With this, the IT environment of the data centers is also becoming more complex. Vendors are innovating new solutions to meet the demand for efficient power infrastructure. The data center operators have also started adopting advanced innovative solutions offered by vendors to improve the operations of their data centers and thereby reduce CAPEX and OPEX. Data center operators install fuel cells to reduce carbon dioxide emissions and improve operating efficiency. Fuel cells are expected to be feasible choices in cities with increasing electricity prices and regular power fluctuations in the grid supply. Most data center operators pursue the concept of fuel cells with hydrogen-powered fuel cells that provide advantages in terms of price and reliability.
Key Drivers and Trends fueling Market Growth:
Innovative UPS Battery Technologies
Growing Adoption of Renewable Energy
Growing Data Center Investments
Increasing Hyperscale Constructions
APAC Data Center Power Market – Geography
In China & Hong Kong, data center demand is expected to grow during the forecast period due to the need for cloud-based services, big data analytics, and IoT. In 2020, China had around 1.6 billion cellular connections, around 850 million internet users, and roughly 1 billion active social media users. These will boost the construction of colocation facilities and prompt regional cloud service providers to establish multiple availability zones across the country as the demand for hybrid infrastructure services increases. In addition, there is substantial demand for cryptocurrency data centers in China, thus boosting the development of data centers with high-performance computing infrastructure. For global companies, it is not possible to directly establish and operate data centers in China, and they have to partner with local firms to establish a footprint in the country. The majority stakeholder requirement has driven investments from local providers in mega data center projects across the region.
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