APAC Data Center Colocation Market Growth to Enlarge till $50 bn by 2026

Published Date: 2020-11-06

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According to the Graphical Research new growth forecast report titled “Asia Pacific Data Center Colocation Market Size By Type (Retail Colocation, Wholesale Colocation), By End-Use (SMEs, Large Enterprises), By Application (BFSI, Energy, Government & Defense, Healthcare, Manufacturing, IT & Telecom, Retail)”, Estimated To Be Around USD 50 Billion By 2026.

The Asia Pacific colocation market will experience growth due to large upfront costs and complexities associated with constructing and running in-house data centers. As businesses evolve and expand, IT requirements will grow, posing challenges for owners to manage the infrastructure. The Asia Pacific market will witness growth primarily due to fast deployment capacity, and the providers’ core expertise in data center operations and services.

The ongoing coronavirus (COVID-19) pandemic will boost the data center colocation industry, due to the rise in the adoption of digital technologies for remote working and education. Educational institutes are conducting online lectures, while corporate offices have urged their employees to work remotely to ensure social distancing and avoid the spread of the virus. The rise in the amount of data collected will propel the demand for colocation services for efficient management of the growing data traffic.

The demand for wholesale colocation services from large enterprises will expand their market presence. Improving economic conditions have encouraged several large companies to strengthen their footprint, offering growth opportunities to the data center industry. In December 2019, NTT Communications Corporation launched Osaka 7 Data Center (Osaka 7) to expand the company’s data center capacity in the Kansai region, Japan. Wholesale colocation customers include large content and media providers, large enterprises, and cloud service providers as well as hosting, IT managed services, and telecom companies.

Robust IT & telecom infrastructure in several countries in the region will boost the colocation market. In September 2018, Facebook invested around USD 1 billion to construct a data center in Singapore, which is scheduled to open by 2022. The surging amount of digital data will encourage data center operators to offer enhanced colocation services in the country. Similarly, advanced telecommunications network in Japan with around 170 million mobile subscriptions as of September 2019, will contribute to the rising amount of data traffic.

Major players operating in the Asia Pacific data center colocation market include CyrusOne Inc., Cyxtera Technologies Inc., China Telecom Corporation Limited, Digital Realty Trust Inc., NTT Communications Corporation Limited, Equinix Inc., and Zayo Group Holdings Inc. The players are focusing on strengthening their footprint to offer enhanced colocation services. In July 2020, an Australian colocation provider, IoT Data Centers (IoTDC) announced that it will launch a 2 Mega Watt facility in Melbourne. The company is currently signing up customers ahead of launch in August 2020.

The Asia Pacific data center colocation market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2016 to 2026 for the following segments:

Market Share, By Type

  • Retail colocation
  • Wholesale colocation

Market Size, By End-Use

  • SMEs
  • Large enterprises

Market Trends, By Application

  • BFSI
  • Energy
  • Government & Defense
  • Healthcare
  • Manufacturing
  • IT & Telecom
  • Retail
  • Others

The above information has been provided for the following regions and countries:

  • China
  • India
  • Japan
  • Singapore
  • Australia