According to a recent IDC report, Asia/Pacific (excluding Japan) Datacenter Deployment Model and Spend Forecast, 2024–2028, the Asia/Pacific installed datacenter IT power capacity is forecasted to grow at a 5-year CAGR of 14.2% and reach 94.4GW by 2028.
Asia/Pacific data center IT power capacity spending increased by 9.6% year-over-year (YoY).
IDC expects the market growth rate to double to 18.3% in 2024, primarily due to the emergence of numerous hyperscale data centers resulting from the strong demand for IT infrastructure. This surge is largely driven by infrastructure modernization efforts across the region and the AI boom, which is helping the data center industry to grow.
“Digital transformation and GenAI are reshaping data centers, driving unprecedented growth and technological advancements in the Asia/Pacific region. Data localization laws are causing enterprises to re-evaluate where they place and how they process their workloads to ensure their IT infrastructure complies with the region’s rapidly developing and non-uniform regulations,” says Mikhail Jaura, Senior Research Analyst, Datacenter Research, IDC Asia/Pacific.
The IDC report, Asia/Pacific Datacenter Deployment Model and Spend Forecast, 2024–2028, highlights significant growth driven by digital transformation and Generative AI, with a projected increase in datacenter capacity to meet the demands of cloud services and AI applications, paving the way for next-generation datacenters.
However, challenges such as power scarcity and supply chain disruptions pose inhibitors to this growth. Key developments include adopting Nvidia’s Blackwell platform and liquid cooling technologies, indicating a shift towards more efficient and sustainable data center operations.
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