APAC Hyperscale Data Center Market - Industry Outlook and

Dublin, Oct. 12, 2026 (GLOBE NEWSWIRE) -- "APAC Hyperscale Data Center Market - Industry Outlook & Forecast 2026-2031" has been added to ResearchAndMarkets.com's offering.

The APAC hyperscale data center market was valued at USD 96.62 billion in 2025 and is projected to reach USD 240.33 billion by 2031, expanding at a CAGR of 16.40%. Growth is being driven by rising demand for AI and cloud services, expanding digital infrastructure, government support, sustainability commitments, and increasing investment from global and regional data center operators.

Sustainability Shapes Data Center Investment

Energy efficiency and sustainable operations are becoming central to hyperscale data center development across APAC. Operators are adopting renewable energy, liquid cooling, free cooling, waste heat recovery, and other technologies designed to reduce greenhouse gas emissions, environmental impact, and operating costs.

Australia is targeting net-zero greenhouse gas emissions by 2050 and aims to source more than 82% of its electricity from renewable energy by 2030.

Japan plans to achieve carbon neutrality by 2050, while India has established a net-zero emissions target for 2070.

Indonesia aims to reach net-zero carbon emissions by 2060 and generate more than 48% of its electricity from renewable sources by 2030.

Taiwan is targeting net-zero emissions by 2050, supported by planned geothermal, solar, and wind power capacity.

The report indicates that adoption of sustainable data center technologies will accelerate over the next five years as operators respond to national climate targets, customer expectations, and higher energy requirements.

AI and Cloud Services Accelerate Capacity Demand

AI adoption is increasing across manufacturing, automotive, healthcare, finance, and technology, creating substantial demand for AI-ready hyperscale data center infrastructure. Governments throughout APAC are supporting AI development through funding, infrastructure programs, and policies that encourage public and private sector adoption.

In November 2025, Taiwan allocated approximately $3.2 million to strengthen AI infrastructure and advance photonics, quantum computing, and AI robotics. In August 2025, South Korea announced plans to develop smart power grids using AI services to improve electricity production, forecast demand, and manage renewable energy generation.

Higher AI computing requirements are also changing facility design. Average rack densities are expected to increase from approximately 15 kW-25 kW to more than 50 kW by 2029. Peak densities for intensive AI workloads could reach 250 kW-500 kW, accelerating the transition from traditional air cooling to liquid cooling techniques.

Infrastructure and Technology Trends

Demand for UPS systems is increasing alongside data center investment, with operators gradually adopting Li-ion batteries instead of traditional lead-acid systems.

Diesel generators with N+1 or 2N redundancy remain widely deployed, although demand for HVO-powered generators is expected to rise during the forecast period.

Air-based cooling includes DX-based CRAC units, free cooling technique solutions, air-cooled chillers, and dry coolers.

Liquid-based cooling is gaining momentum as operators prepare facilities for high-density AI and accelerated computing environments.

Tier III and Tier IV facilities continue to attract investment as cloud providers and enterprises prioritize resilience, availability, and scalable capacity.

Regional Market Opportunities

China benefits from extensive international connectivity through approximately 22 operational undersea cables, with around three additional submarine cables developed in 2025. Hong Kong remains an attractive data center destination due to its proximity to mainland China, international trade links, and strong foreign direct investment.

Japan is increasing renewable energy procurement for data centers. In October 2025, Microsoft signed a PPA with Shizen Energy covering approximately 100 MW of solar power. In India, Mumbai, Navi Mumbai, Hyderabad, Chennai, and Pune remain preferred data center locations, attracting investment from ST Telemedia Global Data Centres, NTT DATA, Equinix, Sify Technologies, and Airtel's Nxtra Data.

Other important APAC hyperscale data center markets covered by the report include South Korea, Taiwan, Australia, New Zealand, Singapore, Malaysia, Vietnam, the Philippines, Thailand, and Indonesia.

Competitive Landscape and Recent Investments

Key investors include AirTrunk, Alibaba Cloud, Apple, AWS, Bridge Data Centres, CDC Data Centres, China Mobile International, China Unicom, DayOne, Digital Realty, Equinix, Google, Keppel Data Centres, Meta, Microsoft, NEXTDC, NTT DATA, Princeton Digital Group, ST Telemedia Global Data Centres, STACK Infrastructure, and Vantage Data Centers.

In April 2026, AirTrunk announced the acquisition of Lumina CloudInfra, providing access to a planned portfolio of approximately 600 MW and around $5 billion in future development opportunities in India.

In September 2025, Alibaba Cloud announced plans to expand across Japan, South Korea, and Malaysia to support AI and cloud service demand.

In March 2025, CURRENC Group announced plans to acquire approximately 100 acres in Johor for a 500 MW data center campus. The initial 100 MW phase is scheduled to become operational by the end of 2026.

In 2026, Nxera, NeutraDC, and Medco Power continued developing the Batam Data Center in Indonesia, with planned IT power capacity exceeding 54 MW.

Report Coverage

The report evaluates investment across IT infrastructure, electrical infrastructure, mechanical infrastructure, and general construction. Detailed segments include servers, storage, networking, UPS systems, generators, transfer switches & switchgear, PDUs, cooling systems, racks, core & shell development, engineering & building design, fire detection & suppression, physical security, and DCIM/BMS solutions.