Groowe Groowe BETA / Newsroom
⏱ News is delayed by 15 minutes. Sign in for real-time access. Sign in

APAC Data Center Market to Double in Size During 2026-2031 | AI-Ready Facilities Drive $4.5 Billion Data Center Investment in Jakarta

globenewswire.com
EQIX Equinix is advancing projects in Malaysia with over $201 million, indicating significant investment and expansion in the growing APAC data center market. MSFT Microsoft is implementing renewable generators at their South Korea facility, aligning with sustainability trends in the data center market. GOOG Google's TalayLink project connecting Australia and Thailand is propelling connectivity and enhancing APAC's position as a digital hub. ORCL Oracle is launching a new cloud region in Indonesia, leveraging APAC's rapid digitalization and contributing to the growth of the data center sector. AVGO Broadcom is mentioned as a leading IT infrastructure provider reinforcing its foothold in the APAC region, aiding data center expansion. CAT Caterpillar is identified as a support infrastructure firm reinforcing its foothold in the APAC region, aiding data center expansion. ETN Eaton is identified as a support infrastructure firm reinforcing its foothold in the APAC region, aiding data center expansion. AMZN Amazon is listed as an investor from tech giants contributing to the APAC data center market expansion. BABA Alibaba is listed as an investor from tech giants contributing to the APAC data center market expansion.

APAC Data Center Market to Double in Size During 2026-2031 | AI-Ready Facilities Drive $4.5 Billion Data Center Investment in Jakarta Dublin, July 13, 2026 (GLOBE NEWSWIRE) -- The "APAC Data Center Market Landscape 2026-2031" has been added to ResearchAndMarkets.com's offering.

The APAC data center market is poised for substantial growth, with investment size projected to escalate at a CAGR of 12.41% from 2025 to 2031. The demand is primarily driven by the burgeoning need for advanced computing capacities facilitated by AI and high-performance computing workloads. Liquid cooling technologies are set to dominate cooling investments, anticipated to grow to 59% by 2031, owing to their efficiency in thermal management.

An array of data center operators in the region are investing heavily in AI-ready infrastructures, incorporating GPU clusters, high-density racks, and enhanced power capacities. Notably, Digital Edge DC has embarked on a $4.5 billion AI-centric facility construction in Jakarta, Indonesia. The colocation sector commands a significant share, contributing 78.48% of investments in 2025, with firms like Equinix advancing projects in Malaysia with over $201 million.

Sustainability continues to influence data center investments, with operators deploying low-carbon power solutions, including lithium-ion batteries and biofuel generators. Microsoft exemplifies this shift by implementing renewable generators at their South Korea facility. The trend towards higher-density racks is also rising to accommodate AI demands, illustrated by DC Connect's initiatives in Seoul.

Government actions are pivotal, with policies fostering the expansion of data centers to cater to digital economies' transformation. In South Korea, a partnership between President Lee Jae Myung and OpenAI's CEO aims to address rising AI needs. Similarly, Taiwan's government is allocating substantial funds to bolster AI infrastructure, targeting global leadership by 2040.

Edge data centers are witnessing an upsurge in demand due to the integration of IoT and Big Data technologies, spurred by smart city projects like Japan's Society 5.0 initiative. The proliferation of submarine cables is further propelling connectivity, enhancing APAC's position as a major digital hub, a sentiment echoed by Google's TalayLink project connecting Australia and Thailand.

Cloud service providers are leveraging APAC's rapid digitalization, linked to the uptick in 5G technologies and localized data storage policies, exemplified by Oracle's new cloud region in Indonesia. The sector's vast potential is further unlocked by strategic collaborations, as seen in OpenAI's alliance with Hitachi Energy in South Korea.

Geographically, China maintains dominance in power capacity, holding a 53% market share, with Southeast Asia trailing at 16.65%. This trend is expected to persist, with notable investments in emerging markets like Malaysia, New Zealand, and Taiwan due to land and power constraints in established areas like Singapore.

Leading IT infrastructure providers such as Arista Networks, Atos, and Broadcom, alongside support infrastructure firms like ABB, Caterpillar, and Eaton, are reinforcing their foothold, aiding in the region's data center expansion. Construction firms like AECOM and Arup are pivotal in infrastructural developments, complementing the array of investors from tech giants like Alibaba, Amazon, and Google.

In conclusion, the APAC data center market is on a dynamic growth trajectory, fueled by technological advancements, sustainability efforts, governmental support, and strategic partnerships. This evolving landscape presents abundant opportunities for stakeholders across the digital ecosystem.

Key Attributes

Market Opportunities and Trends

Growth Enablers

Market Restraints

For more information about this report visit https://www.researchandmarkets.com/r/a5fdea

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Attachment