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APAC Data Center Power Market - Outlook and Forecast 2022-2027
The APAC data center power market, valued at USD 5.51 billion in 2021, is projected to reach USD 8.37 billion by 2027, growing at a CAGR of 7.23%. Colocation providers dominate the market, followed by internet and cloud service providers. The COVID-19 pandemic drove significant demand for data centers as remote working became the norm, leading to a strong utilization of existing facilities and over 10% revenue growth for service providers in the two quarters. This resulted in the announcement of new data center providers and an increased number of internet users, social media usage, smartphone penetration, cloud services adoption, and enterprise migrations to data centers.
Opportunities in the Asia Pacific data center power market include innovative data center and UPS battery technologies, the adoption of renewable energy, the development of 5G and edge data center deployments, the adoption of software-defined power, and the emergence of fuel cell generators. In India, renewable energy accounts for around 23% of the installed capacity, with significant growth in its procurement for data centers.
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USD 5.5 billion in 2020
Power Infrastructure, UPS Systems, Generator Systems, Tier Standards, and Geography
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The APAC data center market saw approximately 160 under-construction and newly built data center projects. China & Hong Kong, India, Australia, Singapore, and Japan accounted for the majority of investments in 2021, contributing to the growth of data center projects across countries.
The COVID-19 pandemic has accelerated digital transformation initiatives worldwide, leading to increased service demand and higher utilization of data center capacity among colocation facilities. This has been beneficial to the data center power industry.
The market is segmented based on various factors, including power infrastructure, ups systems, generator systems, tier standards, and geography.
Segmentation by Power Infrastructure
Transfer Switches & Switchgears
Other Electrical Infrastructure
Segmentation by UPS Systems
Less than or equal to 500kVA
Greater than 1,000 kVA
Segmentation by Generator Systems
0- less than 1.5 MW
Greater than or equal to 3 MW
Segmentation by Tier Standards
Tier I & II
Segmentation by Geography
Southeast Asia – Singapore, Indonesia, Malaysia, Vietnam, Thailand, Philippines, Rest of Southeast Asia Countries
Rest of APAC Countries
In the APAC data center power market, the adoption of UPS systems with a capacity of less than 500 kVA is expected to be higher compared to other systems. This is primarily due to increased procurement in hyperscale data centers. Furthermore, these systems are projected to continue growing in popularity among edge data centers throughout the forecast period.
The market for generators in the data center environment is experiencing rapid growth across Asia-Pacific, mainly driven by the continuous construction of large and mega facilities. It is anticipated to reach a value of USD 2.25 billion by 2027.
The adoption of compute-intensive workloads such as AI, IoT, Augmented and Virtual Reality, and the rising trend of cryptocurrency mining have led to increased data storage and processing requirements. Consequently, there has been a surge in the adoption of high-density racks. During the forecast period, the rack power density is expected to increase from an average of 6-8 kW to 13-15 kW due to the heightened deployment of HPC infrastructure.
Modular solutions offer scalability, flexibility in deployments, and reduced capital expenditure (CAPEX) and operational expenditure (OPEX) due to their prefabricated designs. Additionally, the concept of smart grids or multigrid is gaining traction to address grid instability challenges in various locations within the APAC data center power market.
Countries such as China, Hong Kong, India, Australia, and Japan are witnessing significant investments in hyperscale data centers. The market is expected to witness the replacement of diesel generators with fuel cell generators by the end of the forecast period.
China is the top-contributing country in terms of market share, with a value of USD 737.9 million, followed by Japan and India, which exhibit an absolute growth rate of 52.02%. China holds a dominant market share of 2.74 billion during the forecast period. In China, companies like Alibaba, China Unicom, China Telecom, Baidu, Tencent, and China Mobile are prominent players. The region is also home to notable colocation operators such as GDS Services, Tenglong Holdings Group, BigData Exchange (BDx), ChinData Group, and Shanghai Atrium (AtHub). For instance, China Mobile is currently constructing a data center spanning approximately 1.1 million square feet with around 9,000 server cabinets, expected to become operational by 2025. This development will further stimulate growth in the APAC data center power market.
In India, government initiatives focused on digitalization and increased investments by data center service providers have significantly contributed to market growth over the past two years. The Indian market is poised to witness the entry of multiple new players, as well as existing providers signing Memorandums of Understanding (MoUs) worth millions of dollars in 2021. These developments are expected to further fuel the growth of the data center environment in India.
Legrand is enhancing its position in the market by acquiring renowned vendors such as Raritan and Server Technology, leading suppliers of PDU units for data centers. With a revenue of approximately USD 3.9 billion in H1 2021, the company provides comprehensive data center solutions.
Rolls-Royce Power Systems operates in the data center market through MTU Onsite Energy and KINOLT (Euro-Diesel). The company specializes in manufacturing uninterruptible power systems (UPS) and offers end-to-end services including design, manufacturing, installation, commissioning, and maintenance of generators and DRUPS systems. Rolls-Royce’s power infrastructure solutions, power components, and accessories contribute to driving the growth of the Asia-Pacific data center power market through their innovative offerings.
Socomec has a solid presence in the European market and offers a wide range of VRLA and lithium-ion UPS systems. Additionally, Socomec recently acquired a 70% stake in Continental Control Systems (CCS), a company specializing in power meter development. This acquisition further strengthens Socomec’s portfolio of power-related solutions.
Hewlett Packard Enterprise (HPE) provides power infrastructure and modular data center solutions, including the HPE Modular POD. With net revenues exceeding USD 20.43 billion in 2021, HPE is a significant player in the industry. The company’s major product offerings include UPS systems and power distribution units, which contribute to its overall growth in the market.
Key companies profiled in this report include ABB, Caterpillar, Cummins, Eaton, Rittal, Schneider Electric, Vertiv, AEG Power Solutions, Anord Mardix, Advanced Energy, ATEN International, Austin Hughes Electronics, BACHMANN Group, Borri Group, Canovate Group, Centiel, Chatsworth Products, Cyber Power Systems, Delta Electronics, EAE designs, HITEC Power Protection, Legrand, Rolls-Royce Power Systems, KOHLER (SDMO), Mitsubishi Electric Corporation, Socomec, Elcom International, Enconnex, EverExceed Industrial, Exide Technologies, Fuji Electric, Generac Power Systems, Hewlett Packard Enterprise (HPE), Yanmar (HIMOINSA), Hitachi Hi-Rel Power Electronics, HITEC Power Protection, HITZINGER, INNIO, Kehua Data (Kehua Tech), KOHLER, Kokam (SOLAREDGE), Mitsubishi Electric, Panduit, Piller Power Systems, Powertek, Pramac (PR Industrial), Riello Elettronica Group, Shenzhen Kstar Science & Technology, Saft (TOTAL), Thycon, Toshiba, VYCON, ZincFive.
Key Questions Answered
What are the primary factors driving growth in the Asia-Pacific data center power market?
The key growth enablers in the Asia-Pacific data center power market include the impact of Covid-19 on data center investments, power outages in APAC data centers, increased investments in data centers, rising rack power density, and growing adoption of modular power solutions.
What are some of the emerging trends that will shape the future of the data center power market in Asia-Pacific?
Some of the latest trends that will significantly impact the future of the data center power market in Asia-Pacific include the adoption of innovative data center technologies, the fueling of edge data center investments by 5G deployments, the shift towards carbon-free energy sources, the adoption of lithium-ion UPS battery technology, the emergence of fuel cells, the adoption of software-defined data centers (SDDC), and the implementation of advanced monitoring systems.
Which vendors are prominent in the Asia-Pacific data center power market?
Prominent vendors in the Asia-Pacific data center power market include ABB, Caterpillar, and Cummins, among others.
Which country exhibits the highest growth rate in the Asia-Pacific data center power market?
Taiwan is projected to experience the highest growth rate in the Asia-Pacific data center power market, with a forecasted growth rate exceeding 18% during the specified period.
What is the current size of the Asia-Pacific data center power market?
As of 2021, the Asia-Pacific data center power market was valued at USD 5.51 billion. It is expected to reach a value of USD 8.37 billion by 2027, growing at a compound annual growth rate (CAGR) of 7.23%.