Asia Pacific Data Center Colocation Market Size, Share, Opportunities, And Trends By Colocation Model (Wholesale, Retail), By Enterprise Size (Small, Medium, Large), By Industry Vertical (BFSI, Manufacturing, Communication And Technology, Healthcare, Energy, Government, Media And Entertainment, Others), And By Country - Forecasts From 2025 To 2030

Asia Pacific Data Center Colocation Market Size:

Asia Pacific data center colocation market is anticipated to surpass US$49.360 billion by 2030, at a 15.22% CAGR from US$28.439 billion in 2025.

Colocation facilities in data centers refer to the renting of space within a professional data center facility which can be used by companies to have their space eased out of majorly important infrastructure, in terms of power, cooling, and network connectivity, that can be used without having owned infrastructure through maintenance. The increasing number of new data centers and the regulations that are being put in place coupled with positive structures are boosting the growth of internet penetration in the APAC economies. Moreover, the increasing IoT adoption followed by booming e-commerce, virtual entertainment, and healthcare, among others has improved the market demand.

Further, APAC is growing its share of the world's e-commerce market, totalling US$2.9 trillion in 2022 as per ICRIER and its projects to reach US$6.146 trillion by 2030 in a financially booming region as over 50 per cent offsets the global retail e-commerce market. The market’s further growth is affirmed by the expanding capabilities of 5G internet networks and higher Industry 4.0 adoption levels over the next few years are anticipated.

Asia Pacific Data Center Colocation Market Growth Drivers:

• The growing presence of small and medium-sized enterprises is accelerating the adoption of data center colocation.

Data center colocation is gaining popularity in the Asia Pacific region for small and medium enterprises due to its cost-effectiveness, scalability, and flexibility. Colocation provides the high-quality infrastructure and services that smaller companies in the region could access at a much lower cost than building and maintaining their data centers. Many smaller businesses with tight budgets are seeing the benefits of using colocation services. Solutions are scalable as SMEs can adjust their infrastructure needs as their businesses grow, thus offering higher reliability and better security as a result of robust security measures and advanced cooling systems.

Moreover, according to Invoice Interchange statistics on Small and Medium Enterprises (SMEs) 2024 data. Australia has around 2.5 million SMEs as of June 2023, encompassing various industries such as retail, hospitality, construction, and professional services, making them a significant part of the business landscape.

• The increasing need for faster broadband connections is anticipated to increase the market demand.

The necessity for high-capacity networking is ever-increasing as more avenues require edge-computing applications. The call for speed in instant insight, further complicated by the latency of the network, has also necessitated the invention of hybrid datacenter infrastructures at different locations. Such multi-solution hybrid datacenter architectures were developed to provide solutions for this, and now they carry the burden of transferring between different data centers or private exchange points. This notwithstanding, there has emerged a need for more bandwidth to enable faster processing speeds and uninterrupted data transfers as enterprises shift their operations to the cloud. Such advancements have also added to the scope of new technologies such as 5G and immersive technologies, which help allocate larger bandwidths for data sharing between enterprises.

• Growing data traffic is also increasing the market demand.

The Increase has led to the expansion of network capacity in the 4G era, which will later put the world in a position for widespread deployment of 5G networks. The addition of more cellular radio sites and the allocation of new wireless spectrum are two of the reasons for this expansion. This transition from the fourth to the fifth generation of cellular network technology will bring an even greater demand for mobile data to cope with activities such as cloud gaming, OTT, streaming services, and immersive application development. Thus, this puts higher pressure on the network operators to scale up the network capacity in a bid to support their clients with a better experience.

Asia Pacific Data Center Colocation Market Key Segments:

• By industry vertical, communication & technology is anticipated to grow during the forecast period.

Data center colocation holds a very strategic role in communication and technology as it provides cost-effective infrastructure that is scalable and secure in housing IT equipment. It has the provision of high-speed connectivity, and low-latency networks that are crucial to many real-time communications, and it also assures robust physical and digital security measures to protect data and systems. Outsourcing of data center management enables firms in the technology and communication industries to focus on core operations, acquire high-capacity facilities without investing capital, and respond more quickly to demand.

Moreover, recent data center colocation launches for the communication and technology sector are anticipated to propel market growth in the projected period. For instance, in April 2024, Sify's new data center in India is a testament to the transformative role of data center companies in the rapidly evolving digital landscape of the nation. These data centers are the backbone of India's digital transformation, meeting the increasing demand for robust IT and data infrastructure. The colocation market in data centers is emerging as a cornerstone for enabling advancements in communication and technology, considering the ongoing surge in technologies such as AI/ML, cloud computing, big data, and the Internet of Things (IoT)

Asia Pacific Data Center Colocation Market Geographical Outlook:

• India is witnessing exponential growth during the forecast period.

India's data center colocation market is an important enabler of the country's digital transformation, providing reliable and scalable infrastructure for businesses across industries. From AI/ML, cloud computing, big data, and IoT emerging technologies, a colocation service has enabled companies to meet growing IT demands without considerable capital expenditures. These facilities ensure high-speed connectivity, low-latency networks, and robust security measures, making them indispensable for industries like communication, technology, e-commerce, and financial services.

Moreover, rising investment in data centers by various companies in India is anticipated to fuel market growth in the projected period. For instance, in January 2024, Digital Realty, the world's largest provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, announced the opening of its first Indian data center on a 10-acre campus that can support up to 100 megawatts of critical IT load capacity and is located in the heart of Chennai's industrial and manufacturing hub.

Asia Pacific Data Center Colocation Market Key Launches:

• In November 2024, Equinix Inc. announced plans to open a data center in Singapore. Its SG6 project will broaden its data center portfolio in Singapore. This sustainable design will have innovative liquid cooling and will be developed with an initial cost of USD260 million. This new facility, which is planned to open in Q1 2027, will generate 20MW of power when completed. Equinix claims SG6 will be powered by renewable energy and have liquid cooling capabilities to serve compute-intensive workloads such as AI.
• In May 2024, ST Telemedia Global Data Centres set up a partnership joint venture in Vietnam with the local technology giant, VNG Corporation. This tie-up aims at bolstering Vietnam's data centre landscape using building development, construction and operation of the prime data centre in Ho Chi Minh Ci.

Asia Pacific Data Center Colocation Market Scope:

Report Metric	Details
Asia Pacific Data Center Colocation Market Size in 2025	US$28.439 billion
Asia Pacific Data Center Colocation Market Size in 2030	US$49.360 billion
Growth Rate	CAGR of 15.22%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Colocation Model End-User Industry Vertical Country
Geographical Segmentation	China, Japan, India, Australia, South Korea, and Others
List of Major Companies in the Asia Pacific Data Center Colocation Market	Equinix Rackspace Telehouse Verizon Colt Technology Services
Customization Scope	Free report customization with purchase

 

The APAC data centre colocation market is analyzed into the following segments:

• By Colocation Model
  • Retail Colocation
  • Wholesale Colocation
• By End-User
  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises
• By Industry Vertical
  • Banking and Financial Services
  • Manufacturing
  • Communication and Technology
  • Healthcare
  • Energy
  • Government
  • Media and Entertainment
  • Others
• By Country
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5.  APAC DATA CENTER COLOCATION MARKET BY COLOCATION MODEL

5.1. Introduction

5.2. Retail Colocation

5.3. Wholesale Colocation

6. APAC DATA CENTER COLOCATION MARKET BY END-USER

6.1. Introduction

6.2. Small Enterprises

6.3. Medium Enterprises

6.4. Large Enterprises

7.  APAC DATA CENTER COLOCATION MARKET BY INDUSTRY VERTICAL 

7.1. Introduction

7.2. Banking and Financial Services

7.3. Manufacturing

7.4. Communication and Technology

7.5. Healthcare

7.6. Energy

7.7. Government

7.8. Media and Entertainment

7.9. Others

8.  APAC DATA CENTER COLOCATION MARKET BY GEOGRAPHY

8.1. Introduction

8.2. China

8.3. Japan

8.4. India

8.5. Australia

8.6. South Korea

8.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Equinix

10.2. Rackspace

10.3. Telehouse

10.4. Verizon

10.5. Colt Technology Services

10.6. CenturyLink

10.7. AirTrunk

10.8. Chindata Group

10.9. Digital Realty

10.10. KT Corporation

10.11. NEXTDC LTD

10.12. STT Global Data Centres India Private Limited C/o Tata Communications Ltd 

Equinix

Rackspace

Telehouse

Verizon

Colt Technology Services

CenturyLink

AirTrunk

Chindata Group

Digital Realty

KT Corporation

NEXTDC LTD

STT Global Data Centres India Private Limited C/o Tata Communications Ltd