APAC to Overtake the US as the World's Largest Managed Data Center Market by 2030

The Asia-Pacific (APAC) region is set to surpass the United States and become the largest managed data center market globally by 2030, according to a recent report from Cushman & Wakefield. This transformative shift in the global data center landscape highlights a rapid growth trajectory driven by a combination of economic, technological, and demographic factors in APAC. The market's evolution presents significant opportunities for stakeholders across the data center, cloud computing, and colocation industries.

APAC’s Market Growth Surge

The report, titled Asia Pacific Data Center Investment Landscape, forecasts that by 2030, APAC’s data center capacity will exceed 23,900 MW, surpassing the US, which is projected to reach 18,250 MW. The rapid expansion of data center capacity in the APAC region is attributed to its increasing demand for digital services, including cloud computing, artificial intelligence (AI), and high-performance computing, all of which depend on advanced networking hardware like the cloud data center switch for efficient and scalable connectivity.

In terms of rental income, the Asia-Pacific region is expected to account for 72% of the region's annual colocation data center revenue, totaling approximately USD 44 billion by 2030. This revenue will be concentrated in the top five markets: Japan, Mainland China, Australia, India, and Malaysia, with Japan and China expected to lead the way in terms of capacity and investment.

Key Drivers of Growth in APAC

A variety of factors are fueling the growth of the APAC data center market. Population density and economic expansion in emerging markets such as India and Southeast Asia are driving the demand for digital infrastructure. As the global economy increasingly shifts towards data-driven services, the need for reliable, high-capacity data centers is growing exponentially.

The expansion of hyperscale data centers, driven by global cloud providers and the demand for artificial intelligence services, is another key factor in the market’s rapid development. Leading technology companies are investing heavily in APAC’s data center infrastructure to meet the growing demand for cloud storage, computation, and content delivery networks (CDNs).

Government initiatives across APAC, aimed at bolstering technological innovation and infrastructure, are also playing a crucial role. Countries like Singapore and India have introduced favorable policies to encourage foreign investment in data centers, positioning the region as an attractive destination for global tech giants.

Population Density and Data Center Utilization

A key distinction between APAC and the United States lies in data center population density. The report reveals that APAC serves approximately 350,000 people per megawatt of data center capacity, significantly higher than the 19,314 people served by the US. This disparity indicates that the US has a higher per capita data center capacity than the APAC region on average.

However, certain APAC markets, such as Hong Kong, Singapore, Australia, and Malaysia, have notably lower populations per megawatt. These regions are considered “higher-density” markets, with infrastructure well-developed to cater to their population's digital needs. The undersupply of data centers in countries like Vietnam, Indonesia, and mainland China, however, skews the region’s average, as these markets have significant gaps in digital infrastructure compared to their population size.

Closing the Gap: Future Projections

Looking ahead, the report projects that by 2030, the population-to-capacity ratio in APAC will improve, with the region expected to serve approximately 158,000 people per megawatt. This narrowing of the gap between the US and APAC will be driven by increased investment in digital infrastructure and the gradual development of data centers in underserved markets.

The APAC region's colocation data center share (85% of total operating data centers) is already much higher than that of the Americas (58%) and Europe, the Middle East, and Africa (75%). However, as the US continues to rely on hyperscale cloud providers and colocation services to meet the growing demands of cloud and AI, this gap is expected to narrow slightly by 2030. Despite the US’s dominance in cloud services and AI-driven infrastructure, the APAC region is rapidly closing the gap in terms of total capacity and revenue.

The Road Ahead for APAC Data Centers

The shift in market leadership from the US to APAC signals broader industry trends that are shaping the future of digital infrastructure. By 2030, the Asia-Pacific region is expected to lead the world in data center capacity and revenue, a testament to its rapid economic growth, technological advancements, and increasing demand for cloud and AI services.

This shift offers significant opportunities for businesses operating in the data center and telecommunications sectors, including:

• Investment opportunities in APAC's rapidly expanding markets, particularly in countries with favorable regulatory environments.

• Technological innovation in data center cooling, energy efficiency, and sustainability to support the increasing demand for digital infrastructure.

• Partnerships and collaborations between global cloud providers and local data center operators, as businesses look to scale their infrastructure in the region.

As APAC surpasses the US in data center capacity and revenue, the region will undoubtedly play an even more central role in the global data economy, setting the stage for continued growth and innovation in the digital infrastructure space.

The APAC region’s rise as the world’s largest managed data center market by 2030 underscores the region’s growing importance in the global digital economy. As the demand for cloud services, AI, and high-performance computing continues to soar, APAC’s data center market is well-positioned to meet these needs. With significant investments in infrastructure, favorable government policies, and a rapidly expanding digital economy, the future of data centers in APAC is bright, offering exciting opportunities for businesses and investors alike.

By Jennifer Tseng

Hi, I'm Jennifer, Marketing Executive at lanaotek.com.

I specialize in translating cutting-edge optical and Ethernet transmission technologies into clear, valuable insights that help our customers stay ahead in a fast-evolving digital world.

By turning complex technical concepts into practical, business-driven content, I aim to empower decision-makers with the knowledge they need to make confident, future-ready choices.