APAC Data Center Construction Market to Hit $83.9B by 2031, Led by China's Dominance
Event summary
- APAC data center construction market projected to reach $83.88B by 2031, growing at a CAGR of 15.87% from 2025.
- China commands 53% of power capacity, followed by Southeast Asia with 16.65%.
- Hyperscale data center investments grew by 15.7% year-over-year in 2025, reaching nearly $5.2B.
- EdgeConneX and ESR initiated major data center projects in Japan and Hong Kong, respectively, expected to go live by 2028.
- Alibaba Group plans to invest $69.05B in China's AI infrastructure over the next three years.
The big picture
The APAC data center construction market is experiencing rapid growth, driven by digital transformation and increasing investments in cloud and AI infrastructure. China remains the dominant player, but emerging markets in Southeast Asia are attracting significant investments through tax incentives and government-backed initiatives. The region's data center landscape is evolving with the expansion of hyperscale facilities and the development of AI-ready data centers, supported by advancements in submarine cables and inland fiber networks.
What we're watching
- Market Dominance
- Whether China can sustain its lead in power capacity and investments amid rising competition from Southeast Asia and other emerging markets.
- AI Infrastructure
- The pace at which AI investments will drive demand for next-generation data center facilities across APAC.
- Regulatory Environment
- How stricter data regulations will impact hyperscale investments and cloud expansion strategies in the region.
Related topics