According to The Insight Partners' research, the Asia Pacific Data Center Colocation Market was valued at US$ 16,627.3 Million in 2024 and is expected to reach US$ 51,886.6 Million by 2031, registering a CAGR of 17.9% from 2025 to 2031.
Global data traffic surge and acceleration of digital transformation and increase in demand for artificial intelligence in infrastructure among the critical factors attributed to driving the Asia Pacific data center colocation market growth.
The relentless expansion of global data traffic and accelerated digital transformation are powerful drivers behind the exponential demand for data center colocation services. Today's enterprises are managing soaring data volumes-driven by mobile broadband, video streaming, SaaS, IoT, and enterprise applications-while simultaneously upgrading digital products and services to stay competitive. According to the International Telecommunication Union's Facts and Figures 2024, global mobile broadband traffic surpassed 1 zettabyte in 2023, up from 5.1 zettabytes in the prior year. This deluge of data translates into unprecedented storage and processing demands within data centers and their interconnect networks. Traffic growth rates remain robust, with mobile broadband traffic increasing at approximately 19.6% annually, while fixed broadband traffic grows at 15.2% per year.
As digital transformation initiatives-driven by cloud-native application deployments, video conferencing, content streaming, and IoT/edge environments-mature, enterprises increasingly require robust, highdensity data center infrastructure. Cisco's Annual Internet Report (2023) highlights 3.6 connected devices per capita globally, with billions of connections supporting remote work, AI workloads, and multi-cloud operations. This rapid data traffic growth overloads internal enterprise data centers and legacy operations. Colocation providers offer scalable architectures with advanced cooling, carrier-neutral connectivity, and highcapacity interconnection options-critical for handling high bandwidth volumes and minimizing latency. Colocation facilities are designed as modular, interconnected hubs that can adapt to the increasing demands of digital workloads. They provide modern enterprises with the essential infrastructure required for digital transformation: high bandwidth, resilience, and scalability, all without the financial burden of owning and managing data center assets.
On the contrary, the high initial and maintenance costs hamper the growth of the Asia Pacific data center colocation market.
Asia Pacific Data Center Colocation Market Segmentation Analysis:
- By Type, the Asia Pacific Data Center Colocation Market is segmented into Retail Colocation, Wholesale Colocation, and Hybrid Cloud-based Colocation. The Retail Colocation segment is projected to expand at 16.9% CAGR during 2025 - 2031.
- By Enterprise Size, the Asia Pacific Data Center Colocation Market is segmented into Large Enterprises and SMEs. The Large Enterprises segment is projected to expand at 17.4% CAGR during 2025 - 2031.
- By Industry Vertical, the Asia Pacific Data Center Colocation Market is segmented into IT and Telecom, BFSI, Healthcare, Retail, and Others. The IT and Telecom segment is projected to expand at 17.7% CAGR during 2025 - 2031.
By country, the Asia Pacific Data Center Colocation Market is categorized into Australia, China, Japan, India, South Korea, and the Rest of APAC. China is projected to expand at 18.6% CAGR during 2025 - 2031.
Key players operating in the Data Center Colocation Market are International Business Machines Corp, Rittal GmbH & Co KG, Equinix Inc, Digital Realty Trust Inc, CoreSite Realty Corporation, CyrusOne Inc, Telehouse, NTT Data Corp, AT&T, and Iron Mountain Inc, among others.
- In 2025, Iron Mountain takes ownership of Indian data center firm WebWerks. The companies have been working together for the last four years as part of a joint venture to build data centers in India, and Iron Mountain has increased its investment to the point where it has 100 percent ownership of the business, which will now operate under the Iron Mountain brand.
- In 2025, Digital Realty (NYSE: DLR), the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, and Bersama Digital Infrastructure Asia (BDIA), a leading Southeast Asian digital infrastructure platform, announced the formation of Digital Realty Bersama, a 50-50 joint venture (JV) to develop and operate data centers across Indonesia. The JV extends PlatformDIGITAL into the dynamic Indonesian market, directly supporting the acceleration and growth of its digital economy, which is driven by the country's young and digitally savvy population.
- In 2025, NTT DATA, a global leader in digital business and technology services, today announced it has been selected by The Illinois Tollway to provide a comprehensive suite of data center services. NTT DATA has begun supporting the relocation of The Illinois Tollway's existing central administration data center and disaster recovery facilities. Additionally, NTT DATA will provide ongoing monitoring for The Illinois Tollway's data center equipment.
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