The Asia-Pacific information centre marketplace is expected to turn accelerated for the remainder of this decade. This volition beryllium partially owed to the deployment of artificial intelligence, which took disconnected successful 2023, and volition effect successful higher demands for computing power, successful a inclination akin to different planetary regions.
To conscionable demand, determination information centre providers volition request to accommodate to challenges including the availability and determination of information centres, changing regulatory regimes, considerations similar powerfulness and sustainability, and whether they are built to grip maturation successful AI workloads.
Asia-Pacific information centre marketplace expected growth
The Asia-Pacific data centre market is expected to turn to beryllium worthy USD $53.58 cardinal (AUD $81.1 billion) successful 2028, according to information from Renub Research, with an expected superior yearly maturation complaint of 12% a twelvemonth betwixt 2023 and 2028 (Figure A).
Figure A: Data centre numbers successful the Asia-Pacific are expected to increase. Image: Research and MarketsWith an estimated 14.27 1000 megawatts of inventory successful 2024, different study from MordorIntelligence predicts the region’s information centre marketplace volition expand to 23.2 1000 MW by 2029, oregon a CAGR of 10.21% successful computing capableness during the report’s forecast period.
SEE: The emergence successful computing powerfulness whitethorn enactment Australian information centres astatine hazard of powerfulness failure.
According to the CBRE’s Global Data Center Trends 2023, “data halfway inventory is increasing rapidly crossed Asia-Pacific, achieving awesome scale.”
Biggest information centre blistery spots successful the Asia-Pacific region
The starring information centre determination by numbers is China, with an estimated 449 information centres according to the latest disposable information from Cloudscene (Figure B). This is followed by Australia with 306, Japan with 219 and India with 152.
Figure B: China has the astir information centres successful the Asia-Pacific region. Image: Nikkei AsiaHowever, the starring information centre locations favoured by planetary enterprises for consolidation of their determination information centre operations are usually Singapore, Australia and Hong Kong. Recent moves from immoderate jurisdictions similar China and Vietnam to tighten regulations astir information exports for nationalist information reasons would lone reenforce this inclination among planetary enterprises.
Singapore
Singapore accounts for 60% of Southeast Asia’s information centres. After the 2023 lifting of a moratorium connected caller information centre capacity, which was driven by the sector’s voracious powerfulness demands and issues with sustainability, Singapore has precocious been disclosed arsenic a leading purchaser of NVIDIA chips arsenic it positions itself for a aboriginal emergence successful AI computing.
Australia
Sydney has seen what CBRE’s 2023 trends study calls a “‘second wave’ of involvement from planetary unreality work providers,” which has accrued its capableness by 30%. It present has implicit a half-GW of unrecorded powerfulness capacity, putting it close determination alongside Tokyo and Singapore arsenic determination leaders.
Hong Kong
Though traditionally a rival with Singapore, the Hong Kong marketplace whitethorn go little fashionable among Western companies. According to the CBRE, Hong Kong volition beryllium seen arsenic a much risky spot for information among heightened geopolitical concerns pursuing China’s crackdown.
Data centre marketplace maturation drivers successful the Asia-Pacific region
A cardinal operator of Asia-Pacific determination maturation and the usage of information centre services is the digitisation and integer translation of determination and planetary enterprises. As organisations question to marque their operations much businesslike done digitalisation, and to usage their information to substance maturation successful integer services and innovation, request for unreality computing is connected the rise.
However, determination are a assortment of factors driving information centre growth. China’s pb successful axenic information centre numbers, for example, comes aft the deliberate encouragement of a 30% maturation complaint successful the country’s “big data” sector implicit a fig of years, spurred connected by its world-leading rollout of 5G networks. This is owed to beryllium followed by the commercialized motorboat of 6G by 2030.
Growth successful different markets and hotspots successful the portion is owed to wide trends, specified arsenic accrued request for integer services among the region’s 1.2 cardinal net users and an enlargement successful the Internet of Things. Growing demands see gaming and streaming, portion caller technologies see augmented world and artificial intelligence.
AI computing volition play a large relation successful the future
The International Data Corporation projects spending connected AI volition scope USD $78.4 cardinal by 2027 and 80% of CIOs successful the portion volition leverage organisational changes to harness AI, automation and analytics by 2028.
SEE: AWS predicts generative AI volition proceed to beryllium a absorption into 2024 for Australia.
The emergence of AI-driven applications, which request higher compute capableness successful the signifier of graphics processing units, is expected to thrust a new signifier of information centre manufacture growth. However, it volition besides thrust much questions for information centre providers astir wherever they should beryllium located and thrust caller choices erstwhile it comes to method information centre design.
For example, EY-Parthenon probe argues that generative AI whitethorn service to change the format and determination of aboriginal information centre infrastructure, pushing them distant from large cities towards tier-two cities and metropolis outskirts, arsenic they volition necessitate entree to much energy and water.
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