Asia Pacific Data Center Equipment Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The Asia Pacific data center equipment market size is expected to reach US$ 1,25,929.14 million by 2031 from US$ 50,054.12 million in 2024. The market is estimated to record a CAGR of 14.2% from 2025 to 2031.

Executive Summary and Asia Pacific Data Center Equipment Market Analysis:

The Asia Pacific data center equipment market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. According to the Asia Cloud Computing Association in July 2024, data centers are growing quickly across APAC, with projections showing strong market growth. This increase is driven by factors such as the rise in internet usage, the growth of e-commerce, digital transformation efforts, and the use of advanced technologies such as AI and cloud computing. Moreover, according to the H2 2024 Asia Pacific Data Centre Market Update report by Cushman & Wakefield, Over US$ 116 billion will be needed to build out the existing colocation data center pipeline across Asia Pacific in the coming five to seven years as demand for the sector grows. This significant investment will drive the Asia Pacific data center equipment market by increasing the demand for essential infrastructure, such as servers, cooling systems, power management tools, and networking equipment. As more data centers are built and expanded to meet the rising demand for digital services, cloud computing, and AI technologies, the need for advanced, energy-efficient equipment will grow, creating new opportunities for market growth.

The data center industry in the Asia Pacific has seen considerable growth in both advanced and developing economies, driven by the increasing willingness of companies to invest in new data storage and deployment infrastructure. For instance, according to the Cushman & Wakefield report, India's data center capacity across the top seven cities currently stands at 977 MW. The country's data center capacity is expected to grow significantly, with an additional 1.03 GW under construction by 2028. Moreover, plans for further expansion of 1.29 GW would bring India's total projected data center capacity to 3.29 GW by 2028.

Moreover, the launch of new data centers is contributing to the Asia Pacific data center equipment market. A few recent developments are mentioned below:

• In February 2025, Colt Data Centre Services (Colt DCS), a leading global provider of hyperscale and large enterprise data center solutions, announced the launch of its new hyperscale data center, Inzai 4, in Tokyo, Japan.

• In January 2025, Doma Infrastructure Group (DIG) announced plans for a 50MW to 60MW data center in West Sydney, Australia.

Thus, the substantial growth in the data center industry will propel the Asia Pacific data center equipment market by boosting the demand for advanced infrastructure and equipment, including servers, cooling systems, and power management solutions.

Asia Pacific Data Center Equipment Market: Strategic Insights

Asia Pacific Data Center Equipment Market Segmentation Analysis:

Key segments that contributed to the derivation of the Asia Pacific data center equipment market analysis are equipment type and tier type.

• By equipment type, the Asia Pacific data center equipment market is segmented into servers, storage devices, cooling equipment, power distribution units (PDUs), racks, enclosures, and others. The servers segment held the largest share of the market in 2024.

• By tier type, the Asia Pacific data center equipment market is segmented into tier 3, tier 4, tier 1, and tier 2. The tier 3 segment held the largest share of the market in 2024.

Asia Pacific Data Center Equipment Market Players Density: Understanding Its Impact on Business Dynamics

The Asia Pacific Data Center Equipment Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Asia Pacific Data Center Equipment Market Outlook

E-waste generated by data centers has reached crisis levels. The Global E-waste Monitor reported that in 2022, 61.9 million metric tons of e-waste were generated, with this number increasing by 2.6 million tons each year. Additionally, data center power demand contributes to 2% of total greenhouse gas emissions worldwide. According to the International Energy Agency (IEA), global data centers consumed nearly 460 terawatt hours (TWh) of electricity in 2022, and they are likely to consume 1000 TWh by 2026. If not addressed, this could significantly impact the global carbon reduction targets. Hence, businesses and governments worldwide are intensifying their efforts to address climate change and reduce carbon footprints. Data center operators are increasingly turning to sustainable and energy-efficient technologies to meet both regulatory requirements and environmental goals. In response, equipment manufacturers are investing heavily in developing next-generation technologies that focus on sustainability and energy efficiency.

For instance, in December 2024, Microsoft launched a new data center design that optimizes AI workloads and consumes zero water for cooling. By adopting chip-level cooling solutions, Microsoft can deliver precise temperature control without water evaporation. This design avoids the need for more than 125 million liters of water per year per data center. Similarly, in December 2024, Amazon Web Services, Inc. announced new data center components aimed at supporting the next generation of AI innovation and meeting customers' evolving needs. These capabilities combine innovations in power, cooling, and hardware design to create more energy-efficient data centers. Such innovations are helping data centers become more energy-efficient, reducing operational costs and contributing to a greener, more sustainable future. As data centers strive to reduce their energy consumption, lower emissions, and meet regulatory and consumer demands for greener operations, the demand for energy-efficient and sustainable technologies is expected to continue rising. Thus, the growing focus on sustainability and energy-efficient equipment is expected to provide lucrative opportunities for the data center equipment market growth.

Asia Pacific Data Center Equipment Market Country Insights

Based on country, the Asia Pacific data center equipment market comprises China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. China held the largest share in 2024.

China has been increasing its investment in computing capacity in response to export controls imposed by the US, which have restricted the sale of advanced chips to companies. This push to develop domestic technological capabilities drives the demand for advanced data center infrastructure and equipment. As China works to build self-sufficiency in computing resources, there is a growing need for high-performance servers, storage systems, and networking solutions to support the country's data processing and AI advancements. Companies and government initiatives are investing in infrastructure to replace or supplement foreign technology. In July 2024, China Mobile launched a data center in Beijing. The computing center was one of 12 that China Mobile has in regions such as Jing-Jin-Ji, CNI Yangtze Index, Greater Bay Area, Chengdu-Chongqing, Guizhou, Inner Mongolia, Ningxia, Heilongjiang, Hubei, and Shandong.

Asia Pacific Data Center Equipment Market Company Profiles

Some of the key players operating in the market include ABB Ltd, Legrand SA, Schneider Electric SE, Rittal GmbH and Co KG, Eaton Corp Plc, Dell Technologies Inc, Honeywell International Inc, Vertiv Group Corp., Delta Electronics Inc, and Cisco Systems Inc., among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

Asia Pacific Data Center Equipment Market Research Methodology :

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise