APAC Data Centre Association: Plans for Digital Growth
During a time of unprecedented digital transformation, in line with enterprise demands for new technologies, the data centre industry continues to expand across the Asia-Pacific region (APAC).
In the midst of this, several high-profile data centre companies launched the Asia-Pacific Data Centre Association (APDCA) in January 2024, designed to give a voice to data centre operators in the region. Aiming to engage with governments to co-develop policies, the association hopes to strengthen the overall security and sustainability of data centres.
The association’s founding members consist of NTT Global Data Centers, Digital Realty, Equinix, AirTrunk, Global Switch, Princeton Digital Group, ST Telemedia Global Data Centres and Vantage Data Centers.
Delivering economic benefits to local communities
Demands for better connectivity are growing worldwide, with increasing numbers of businesses looking to invest in new technologies. In particular, the APAC data centre colocation market will reportedly reach US$19.3bn in 2023, which is expected to overtake North America and rank first worldwide.
Likewise, the APAC market is expected to grow at a 9.9% 5-year CAGR from 2022 to 2028, making it the second-fastest growing region.
This rapid growth is undoubtedly putting immense pressures on the data centre sector, as facilities are having to use more power to accommodate their customers. As a result, the increase in energy is ultimately prompting companies to consider how to make their operations more efficient and sustainable, in order to reduce environmental impacts.
As part of the APDCA, leading businesses in the sector will share collective knowledge to strengthen and build modern, diversified and resilient economies in APAC. These facilities and services aim to be both competitive and future-proof, scaled to meet evolving customer needs.
Its members have already highlighted their commitment to working with governments to co-develop policies that drive the security and resiliency of data centres, minimise environmental impact and deliver positive economic benefits to the local communities in which they operate.
Putting local communities at the heart of these operations is paramount, as data centre growth can also contribute to new jobs, attracting skilled workforces, as well as upgrades to local public infrastructure. This level of increased connectivity will only prompt the APAC data centre industry to expand further.
Within the region, India emerges as a clear example, as its data centre industry continues to thrive. Its digital transformation efforts have rapidly accelerated, bringing much benefit to its economy. Operating as the third-largest data centre market in APAC, it is expected that the nation’s data centre industry could reach US$4.5bn by 2025.
Also experiencing a boom in demand, China has accelerated its industry plans by launching its first underwater data centre.
APDCA has also announced plans to coordinate and work with its counterpart, European Data Centre Association.
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