According to a recent study by market research firm Graphical Research, the Asia-Pacific hyperscale data center market size is expected to reach a valuation of US$10 billion by 2027.

Growing data security concerns pave way for Asia Pacific hyperscale data center market forecast to remain strong throughout

With the COVID-19 pandemic and subsequent work-from-home and e-learning regime, internet connectivity and data management are high on the priority lists of most organizations and investors.

The pandemic proved to be a critical accelerator of digitization, which was expected to take years, highlighting the need for new data centers. To meet growing demand, many of the largest
Technology companies and other data center operators are looking to Asia-Pacific, where data centers can serve growing global internet traffic for growing numbers of users in the region.

In April 2020, US-based data center developer Equinix announced its joint venture to build data centers in Japan, which will be occupied by either technology companies or cloud providers. The Asia-Pacific hyperscale data center market size is expected to reach USD 10 billion by 2027, driven by
increased connectivity trends.

Hyperscale data centers in India, aspiring to become a digital economy, cater to growing data demands from social networks, online games, streaming, e-commerce and online education sites.

Regional and international investment and data center growth is gaining momentum across the country, aided by progressive government regulations, such as the $1.58 billion incentive program launched by the Indian government in 2021.

In terms of international investments, Equinix, which entered India in 2020 with the acquisition of interconnect and data center company GPX Global Systems, is trying to expand its presence across the country.

Last year, the company established two data centers in Mumbai and has ambitions to expand to other Indian metropolises.

The rise of e-commerce has been remarkable over the past two years, with pandemic-driven sales spurring new entrants trying to gain a foothold in the market. According to the India Brand Equity Foundation (IBEF), the country’s online retail is expected to reach US$350 billion by 2030, up from around US$55 billion in 2021, due to an increase in the number of online customers.

The retail sector’s use of advanced digital technologies, such as analytics and cloud computing, is expected to drive up the large-scale data center market share in Asia Pacific by 2027.

Regional telecom companies are focusing on improving user experience with expanding data centers.

Sterlite Technologies, for example, introduced its 5G from India solution in December 2021, which would fundamentally change the dynamic towards rapid and high-quality 5G deployments.

Growing adoption of high-speed internet services in the region is driving data traffic, fueling the Asia-Pacific hyperscale data center market size.

The need for data will only grow in the future, accentuating the need for new data centers that ensure efficient data management.

With a slew of marketing strategies being implemented by prominent hyperscale data companies such as Alphabet, ABB, Amazon Web Services, Lenovo Group, NVIDIA Corporation, and Schneider Electric SE, the industry is expected to witness notable developments in the coming years. come.