APAC Datacenters: Navigating The Uncertain ROI

There are a number of reasons to be excited about the Asia Pacific Data Center (DC) market. Capacity has been growing at15% CAGRsince 2020, and isforecast to grow at 22% CAGR between 2025 and 2030. APAC hosts 62.18% of world's population and has markets like India where GDP growth is forecast to be 6.6% in 2025, citing a strong economic performance. Internet penetration is now at 70.4% and the APAC population is increasingly exposed to digital platforms such as e-commerce, fintech, and social media. In addition, governments are seeking to gain parity on innovation by encouraging digital infrastructure builds. No wonder, then, that there are number of players entering the DC market here—real estate players, telcos and pureplay digital infrastructure players. Across the top 10 markets, there have been both capacity additions and new players coming on board as shown in Figure 1.