Asia-Pacific Data Center Construction market is expected to grow from US$ 10.12 Bn in 2018 to US$ 23.44 Bn by the year 2027. This represents a CAGR of 10.2% from the year 2018 to 2027. The EBITDA margins are significantly higher for data centers as compared to alternative infrastructure sectors. This is partially due to the 'pay-as-you-grow' model adopted by data centers. This means, when the storage need increases, only investment in additional infrastructure is required. Also, since data centers once built cannot be shifted; thus, there is no need to move IT hardware and servers. This helps in reducing the cost of sales. Thus, these high EBITDA margins can be used for creating healthy cash flow. This factor is expected to drive the growth of Asia-Pacific Data Center Construction market.
With major enterprise across several industry verticals focusing towards core competencies, the need to open their own data center space will significantly drive the growth of Asia-Pacific Data Center Construction market. The trend is more pronounced among telecom and OTT service providers. Telecom stalwarts such as Verizon, CenturyLink, and AT&T have already begun to establish their own data center space as an important step to increase its market share in core competencies. While OTT service providers are demanding an increasing amount of data center space as data-driven entertainment consumption is gaining traction in the market. With other small scale enterprise and start-up firms preferring third parties for cloud hosting systems, large scale enterprise is more focused towards improving security measures leading them to spin-off their own space in the near future.
The Asia-Pacific Data Center Construction market is fragmented with the presence of several industries and the competitive dynamics in the Asia-Pacific Data Center Construction market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the Asia-Pacific Data Center Construction market further. For instance, The Malaysian government supports the development of data centers under the guidance of Multimedia Development Corporation (MDeC). Also, the government of Singapore constructed a data center hub/park in the country called Tanjong Kling, for multinational companies to set their headquarters as well as data centers there. Also, the government of China has launched guidelines focused on green data centers deployment. Furthermore, the Digital India initiative started by the government of India has led to accelerating IT shift in the country, thus, positively affecting the growth of data centers. This factor is also creating opportunities for companies operating in Asia-Pacific Data Center Construction market to gain a broader customer base. The companies operating in Asia-Pacific Data Center Construction market are focusing on attracting more customers by offering advanced services and solutions.
The Asia-Pacific Data Center Construction market by tier standards is segmented into tier 1 & 2, tier 3, and tier 4 data centers. Tier 3 data centers utilized by large business enterprise offers features such as 99.984% uptime and N+1 fault tolerant offering minimum 72-hours of power outage protection. Also known as concurrently maintainable data center, these require no shutdown for equipment maintenance and replacement. Tier 3 incorporates the features of both Tier 1 as well as Tier 2 data centers. It also requires power and cooling equipment's during the maintenance process without affecting the IT processing of the organization. All the IT equipment's in an organization must have dual power supplies which are directly connected with the UPS units that work off-line without crashing servers. These data centers also consist of redundant cooling systems which can be used whenever one cooling unit fails to cool the room.
The overall Asia-Pacific Data Center Construction market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the Asia-Pacific Data Center Construction market. It also provides an overview and forecast for the Asia-Pacific Data Center Construction market based on all the segmentation provided with respect to the Asia-Pacific region. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Asia-Pacific Data Center Construction industry. Some of the players present in Asia-Pacific Data Center Construction market are DPR Construction, Inc., Fujitsu Limited, Aecom, ISG PLC, Rittal Gmbh & Co. KG, Tripp Lite, Turner Construction, Jacobs Engineering Group, Schneider Electric SE, Hitachi, and Vantara Corporation, among others.