China to lead data center and hosting market growth in APAC through 2023, says GlobalData

China is set to lead the Asia-Pacific (APAC) data center and hosting market with 36% share in the region’s overall estimated revenue in 2023, says GlobalData, a leading data and analytics company.

According to GlobalData’s Market Opportunity Forecasts Model, the data center and hosting market revenue in China is estimated to reach US$11.5bn in 2023. China, Japan, Australia, India and South Korea will be the five leading revenue generating countries, accounting for nearly 80% of the overall data center and hosting revenue in the region, which is estimated to be US$32bn in 2023.

Sunil Kumar Verma, Lead ICT Analyst at GlobalData, comments: “Growing demand from enterprises will propel the growth of cloud computing and other associated data services in the region. In addition, advancements in data center technology along with its integration with other associated services will be the key driving factor for the growth in the region.”

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Enterprises across various countries in the APAC region continue to evolve in the today’s digital era, as they focus on leveraging the distributed, always-on, interconnected digital services, to pursue their digital transformation program. Additionally, the active involvement of leading vendors to further enhance their competency too has been a key factor driving the overall market.

Internet companies, along with cloud vendors in China, continue to make significant impact on the increased demand for data center and hosting services. Some of the major vendors operating in the country include Alibaba, Tencent, Sinnet, China Telecom and China Unicom.

Internet Initiative Japan (IIJ) completed 50MW data center in April 2019, whereas Kyocera and MC Digital Realty have announced plans to build data centers.

The New South Wales government in Australia pledged US$100m in February 2019 to develop regional data centers to enhance Internet connectivity, as a part of its US$400m million regional digital connectivity package.

In India, Oracle opened cloud data center in October 2019, as a part of its plan to build 20 data centers globally. Leading telcos in India such as Reliance Jio and Airtel too have announced plans to open data centers in the country.

In South Korea, Equinix and Oracle have opened data centers, whereas Digital reality and Samsung too have announced plans to build data centers in the country.

Sunil concludes, “Connected ecosystem growth facilitated by increasing Internet of Things (IoT) penetration and 5G launch, adoption of new technologies like artificial intelligence (AI) and virtual reality (VR) will foster increased data storage and processing capabilities demand, resulting in increased construction and developments related to the data centers and hosting in the region.”

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