According to a report by International Data Corporation (IDC), the Asia/Pacific (excluding Japan) installed data centree IT power capacity is forecasted to grow at a 5-year compound annual growth rate (CAGR) of 14.2 per cent and reach 94.4GW by 2028.
As per the report, Asia/Pacific data center IT power capacity spending increased by 9.6 per cent year-over-year (YoY). IDC expects the market growth rate to double to 18.3 per cent in 2024, primarily due to the emergence of numerous hyperscale data centres resulting from the strong demand for IT infrastructure. This surge is largely driven by infrastructure modernisation efforts across the region and the artificial intelligence (AI)-boom, contributing to a flourishing data centre industry.
Commenting on the report, Mikhail Jaura, senior research analyst, data centre research, Asia/Pacific, IDC, said, “Digital transformation and generative AI (GenAI) are reshaping data centres, driving unprecedented growth and technological advancements in the Asia/Pacific region. Data localisation 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.”
Further report highlighted that significant growth driven by digital transformation and GenAI, with a projected increase in data centre capacity to meet the demands of cloud services, AI applications, paving the way for next generation data centres. However, challenges such as power scarcity and supply chain disruptions pose inhibitors to this growth. Key developments include the adoption of Nvidia’s Blackwell platform and liquid cooling technologies, indicating a shift towards more efficient and sustainable data centre operations.
