APAC Data Center Market Poised for $255B Expansion by 2031, Driven by AI and Cloud Demand
Event summary
- APAC data center market projected to reach $255.49B by 2031, up from $126.64B in 2025, growing at a 12.41% CAGR.
- Colocation investments expected to add $64.08B by 2031, with a 15.36% CAGR.
- China leads with 47.92% of regional investments in 2025, followed by India, Australia, and Japan.
- Liquid cooling adoption rising to 59.0% by 2031 due to AI-driven higher rack densities.
- Government initiatives and digital sovereignty strategies are shaping investment locations.
The big picture
The APAC data center market is experiencing rapid growth driven by digital transformation, cloud adoption, and AI workloads. China remains the dominant player, but secondary markets are gaining traction due to land constraints in major hubs. Government policies are increasingly shaping investment locations, creating a favorable environment for data center expansion across the region. The shift towards liquid cooling highlights the need for more efficient thermal management as AI demands rise.
What we're watching
- Geographic Shifts
- How land availability constraints in major hubs will accelerate investment in secondary markets like Malaysia and Indonesia.
- Technological Adaptation
- The pace at which liquid cooling and higher rack densities will be adopted to support AI workloads.
- Policy Influence
- Whether government-backed AI infrastructure programs will sustain long-term growth in emerging APAC markets.
Related topics