DUBLIN–(BUSINESS WIRE)–The “Data Center Colocation Market in APAC – Industry Outlook and Forecast 2021-2026” report has been added to ResearchAndMarkets.com’s offering.
The APAC data center colocation market by investment is expected to grow at a CAGR of over 5% during the period 2020-2026.
The demand for colocation has increased due to the COVID-19 pandemic. Increased access to internet-related services aided by nationwide lockdowns imposed by governments across APAC has driven service providers to increase their colocation spaces.
Organizations in IT services, BFSI, hospitals, and education sectors have initiated remote working for employees. Government agencies adopted cloud-based services where the confidential data of the state is stored securely. Moreover, the dependence of the education sector on the online teaching model has increased the demand for colocation services.
The need for video-conferencing platforms such as Zoom, Webex, and Google Meet has experienced a steep rise. The use of online shopping has increased significantly during the COVID-19 outbreak. Colocation service providers witnessed a strong uptake for data center spaces by existing customers owing to the growth of COVID-19-induced demand.
The emergence of a new business environment in COVID-19 boosts cloud service providers, and video conferencing service providers have contributed to the colocation uptake. During the COVID-19 pandemic, cloud-service providers were the major contributors as they chose to host the data in colocation data centers instead of building their own data centers in the region.
INSIGHTS BY GEOGRAPHY
China and Hong Kong expect to contribute maximum revenue to the market, with the India data center market likely to grow a promising CAGR of over 8% during 2020-2026. China & Hong Kong are the prominent markets for data center operations in APAC. The demand for data center market is growing on account of the boom in internet users, growth in the gaming sector, the popularity of the e-commerce industry, and investments in the digitalization of enterprises.
Tier-1 cities such as Beijing, Shanghai, Shenzhen, Guangzhou, and Hong Kong are the major data center markets. In terms of investment, 39 colocation facilities contributed an investment of over USD 3.55 billion, which included projects that opened in 2020 and that are under construction and expected to be operational by June 2021. Shanghai is a preferred location for the colocation area under development, followed by Langfang and Beijing.
In terms of investment, GDS Services was the major investor in the APAC data center colocation market in 2020, with multiple expansions and newly built projects across China. It has a market share of over 17% in the market. It invested majorly in Langfang and Shanghai, where it pumped in over USD 1 billion.
Similarly, Equinix was another major investor in the APAC market in 2020 with a market share of 4.2% and invested over USD 370 million in six data centers in Singapore, Hong Kong, Tokyo, and Melbourne.
The APAC data center colocation market is highly competitive, with many providers investing in new facilities and expanding their existing ones to accommodate the demand from customers. New entrants are investing in the construction of core and shell properties across the region. These new facilities expect to be fully commissioned within two years of initial build-out.
INSIGHTS BY VENDORS
In terms of investment, GDS Services was the major investor in the APAC data center colocation market in 2020, with multiple expansions and newly built projects across China. It has a market share of over 17% in the market. It invested majorly in Langfang and Shanghai, where it pumped in over USD 1 billion.
Similarly, Equinix was another major investor in the APAC market in 2020 with a market share of 4.2% and invested over USD 370 million in six data centers in Singapore, Hong Kong, Tokyo, and Melbourne.
The APAC data center colocation market is highly competitive, with many providers investing in new facilities and expanding their existing ones to accommodate the demand from customers. New entrants are investing in the construction of core and shell properties across the region. These new facilities expect to be fully commissioned within two years of initial build-out.
KEY QUESTIONS ANSWERED:
Prominent Data Center Colocation Service Providers
Other Prominent Data Center Colocation Service Providers
New Entrants
For more information about this report visit https://www.researchandmarkets.com/r/sghzzx
Contacts
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
Offer extended to 17 January 2025. Offer Price remains firm at RM11.00 Per Share KUALA…
NCKUH embraces digitization, revolutionizing patient care through technology TAIPEI, TAIWAN - Media OutReach Newswire -…
Growth strategy: medium-term sales potential of more than € 300 million Growth drivers in the…
The limited-edition pre-order will begin today, marking the addition of new DHL fashion items to…
Largest-ever delegation of homegrown tech companies capturing global attention and potential business opportunities HONG KONG…
SINGAPORE - Media OutReach Newswire - 8 January 2025 - ROSHI, a leading fintech company…