Asia-Pacific Data Center Operators Form First-of-its-Kind Trade Association to Promote Sustainable Growth

The Asia-Pacific region is witnessing a significant surge in the demand for data centers, leading eight major global data center operators to join forces and establish the Asia-Pacific Data Center Association (APDCA). This trade association aims to advocate for favorable policies and regulations that support the sustainable growth of the data center industry in the region.

The APDCA has brought together industry leaders including AirTrunk, Digital Realty, Equinix, Global Switch, NTT Global Data Centers, Princeton Digital Group, ST Telemedia Global Data Centres, and Vantage Data Centers. With their combined expertise and resources, these founding members are poised to drive positive change and innovation in the Asia-Pacific data center landscape.

Representation and Market Share

The APDCA founding members collectively represent a substantial portion of the Asia-Pacific (APAC) data center market, accounting for 40% of the region’s market share (excluding Mainland China), as reported by Synergy. This positions the association in a strong position to influence policies and shape the future direction of the industry.

Asia is at the epicenter of data center growth, as the region experiences a tremendous increase in demand for digital infrastructure. This growth can be attributed to factors such as rapid digital transformation across industries, the rise of cloud computing, and increasing data storage requirements. The establishment of the APDCA signifies the industry’s recognition of the region’s significance as a key player in the global data center landscape.

The APAC data center colocation market, which has been thriving in recent years, supported a total of 10,233 MW of critical IT capacity in the previous year. This represents approximately 40% of the entire global market, as highlighted by data from Structure Research. The region’s robust market performance offers immense opportunities for investment and expansion.

Projected Growth and Development

According to Structure Research, the APAC data center colocation market is projected to reach a staggering 19,069 MW by 2028. This translates to an average annual addition of around 1,700 MW of critical IT capacity. The market is expected to maintain a strong compound annual growth rate (CAGR) of 13.3% over the next five years, further underscoring the region’s potential for continued expansion.

Demand for Managed Data Services

The data center business in Asia-Pacific is experiencing exponential growth, driven by the escalating demand for managed data services. As organizations increasingly rely on data-driven insights and cloud-based solutions, the need for reliable, secure, and scalable data center infrastructure becomes paramount. The APDCA aims to address this growing demand by advocating for policies and regulations that enable the sustainable growth of the industry while ensuring data privacy and security.

Governance and Leadership

The APDCA will be governed by a board appointed by the founding members, ensuring transparent and industry-led decision-making processes. The collective expertise and experience of the founding members will enable the association to effectively represent the interests of the data center industry, promote best practices, and drive innovation.

Collaboration with European counterparts

The APDCA is not alone in its mission, as it is affiliated with the European Data Centre Association (EUDCA). This partnership allows for collaborative efforts with counterparts in Europe to tackle common industry challenges, exchange knowledge, and promote global standards. By fostering international cooperation, the APDCA aims to drive continued growth and development while ensuring harmonization across regions.

The establishment of the Asia-Pacific Data Center Association (APDCA) marks a significant milestone for the data center industry in the region. With its founding members representing a substantial share of the market, the APDCA is poised to shape the future of the industry, advocate for favorable policies, and promote sustainable growth. As Asia continues to be at the epicenter of data center expansion, the APDCA’s role becomes increasingly crucial in facilitating collaboration, innovation, and the development of a robust digital infrastructure ecosystem.

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