A recent report by market intelligence firm International Data Corp. (IDC) forecasts a rise in the installed data center IT power capacity across the Asia/Pacific (excluding Japan).
The report, titled “Asia/Pacific (Excluding Japan) Datacenter Deployment Model and Spend Forecast, 2024–2028,” predicts that the region’s IT power capacity will grow at a compound annual growth rate (CAGR) of 14.2% over the next five years, reaching 94.4 gigawatts (GW) by 2028.
The IDC report also notes that the region saw a 9.6% year-over-year increase in data center IT power capacity spending. The market is expected to accelerate further in 2024, with a projected growth rate of 18.3%. This rapid expansion is primarily attributed to the emergence of numerous hyperscale data centers, driven by a robust demand for IT infrastructure. The growth is largely fueled by the ongoing modernization of infrastructure across the region and the rise of artificial intelligence (AI), which are key contributors to the burgeoning data center industry.
“Digital transformation and Generative AI (GenAI) are reshaping data centers, driving significant growth and technological advancements in the Asia/Pacific region,” said Mikhail Jaura, senior research analyst for IDC Asia/Pacific’s Data Center Research. “Data localization laws are prompting enterprises to reconsider the placement and processing of workloads to ensure compliance with the region’s rapidly evolving and varied regulations.”
The report highlights that digital transformation and AI applications, particularly in cloud services, are major drivers behind the projected increase in data center capacity. These advancements are paving the way for next-generation data centers in the region. However, the report also warns of potential challenges, including power scarcity and supply chain disruptions, which could hinder this growth.
Key technological developments noted in the report include the adoption of Nvidia’s Blackwell platform and liquid cooling technologies. These innovations suggest a shift toward more efficient and sustainable data center operations as the region prepares to meet growing demands.