APAC Hyperscale Data Center Market - Industry Outlook and Forecast 2026-2031 | AI and Cloud Demand Drive Market to $240.33 Billion as Liquid Cooling and Green Infrastructure Scale
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.
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
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.
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.
It also assesses air-based and liquid-based cooling, Tier I & Tier II, Tier III, and Tier IV standards, along with leading IT infrastructure providers, support infrastructure companies, contractors, subcontractors, established investors, and new market entrants. Prominent technology and infrastructure vendors include Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NVIDIA, Oracle, ABB, Caterpillar, Cummins, Eaton, Schneider Electric, STULZ, and Vertiv.
Key Questions Addressed
Key Attributes:
Key Topics Covered:
1. About the Analyst
2. Data Center Capabilities
3. What's Included
4. Segments Included
5. Research Methodology
6. Market at Glance
7. Premium Insights
8. Introduction
8.1. Investment Opportunities
8.2. Investment: Market Size & Forecast
8.3. Area: Market Size & Forecast
8.4. Power Capacity: Market Size & Forecast
9. Market Dynamics
9.1. Market Opportunities & Trends
9.2. Market Growth Enablers
9.3. Market Restraints
9.4. Site Selection Criteria
10. Infrastructure Segmentation
10.1. IT Infrastructure
10.2. Electrical Infrastructure
10.3. Mechanical Infrastructure
10.4. Cooling Techniques
10.5. General Construction
11. Tier Standards Segmentation
12. Geography Segmentation
13. APAC
13.1. Data Center Market by Investment
13.2. Data Center Market by Area
13.3. Data Center Market by Power Capacity
13.4. Data Center Market by Support Infrastructure
14. China
15. Hong Kong
16. Australia
17. New Zealand
18. Japan
19. India
20. South Korea
21. Taiwan
22. Singapore
23. Indonesia
24. Malaysia
25. Thailand
26. Philippines
27. Vietnam
Coverage for Chapters 14-27
Impact of AI on Data Center Industry
Government Rules & Regulations
Market by Investment
Market by Area
Market by Power Capacity
Key Support Infrastructure Adoption
Market by Infrastructure
List of Upcoming Data Center Projects
28. Market Participants
28.1. Prominent IT Infrastructure Provider
28.2. Prominent Support Infrastructure Providers
28.3. Other Support Infrastructure Providers
28.4. Prominent Data Center Contractors & Subcontractors
28.5. Other Data Center Contractors & Subcontractors
28.6. Prominent Data Center Investors
28.7. Other Data Center Investors
28.8. New Entrants
29. Quantitative Summary
30. Appendix
30.1. Abbreviations
30.2. Definitions
30.3. Segmental Coverage
A selection of companies mentioned in this report includes, but is not limited to:
For more information about this report visit https://www.researchandmarkets.com/r/ultqo6
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