The Asia Pacific data center market is expected to reach US$53.58b in 2028 and a CAGR of 12% from 2023-2028. This projected growth was highlighted by Research and Markets where it stated that the industry was at US$27.15 billion in 2022.
The reasons for the continued growth in the industry in the APAC region is due to market movements and trends. One such trend is the boom in the number of East Asia’s internet users in 2022 which was at 1.2 billion as compared to the Americas with 807 million. Increase in internet users means increase in data usage and storage.
Data centers growing their capacity in countries such as Malaysia and the demand for more localisation of data center facilities are other driving factors to the uptrend.
Furthermore, the expected demand for data in the growing internet economy in South East Asia, according to industry analysts, will spur data center growth in the region. Based on a study led by Google, the online economy is projected to be worth US$330 billion in 2025.
Malaysia, Thailand, and Indonesia are among nations at the forefront of this growth. NTT Group of Japan plans to invest $90 million in constructing their third data center in Bangkok, while Amazon’s cloud computing unit has announced a $6 billion investment in Malaysia over the next 14 years.
The use of cloud computing has the potential to boost Indonesia’s GDP by $10.7 billion between 2021 and 2025, with cloud providers like AWS, Google, Microsoft, and Alibaba already established in the country. Vietnam, a newer emerging market for data centers in the region, is expected to receive investments of $1,037 million by 2028.
