The global data center industry is anticipated to experience significant growth due to the increasing adoption of cloud computing and artificial intelligence (AI).
According to the JLL Global Data Center Outlook 2023, the global hyperscale market is expected to achieve a compound annual growth rate (CAGR) of 20% between 2021 and 2026. Additionally, the colocation data center market size is projected to have a consistent upward trend with a CAGR of 11.3% during the same period.
The growth of cloud services, accelerated by the pandemic, has been a key driving force behind the expansion of the hyperscale data center market. The number of hyperscale data centers has risen from 259 in 2015 to 700 in 2021.
Gartner predicts that by 2025, approximately half of all cloud data centers will incorporate AI. Machine learning and AI will be leveraged in data center operations to enhance performance and efficiency.
In terms of hyperscale data center capacity, the Asia Pacific region currently accounts for 26% of the global share.
In another recent report, the global data center construction market was valued at US$50.34 billion in 2022 and is currently growing at a CAGR of 6.50%. The market segment covered include facility, infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, tier standards, and geography.
China is considered the most mature market in APAC, with its digital transformation and business connectivity driving industry growth. Experts anticipate that China will continue to lead the region in investments and power capacity expansion in the foreseeable future. Indonesia has been identified as the prominently growing locations in the Southeast Asia region.
