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APAC Data Centre Association: Plans for Digital Growth

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

Several prominent data center companies, including NTT, Equinix, and Digital Realty, have collaboratively initiated the establishment of the Asia-Pacific Data Centre Association (APDCA) in January 2024. This strategic move is in response to the escalating demand for new technologies and the ongoing digital transformation sweeping across the Asia-Pacific region (APAC).

The APDCA aims to serve as a collective voice for data center operators in the region, focusing on engaging with governments to collaboratively develop policies. The overarching goal is to enhance the security and sustainability of data centers as they play a pivotal role in the evolving digital landscape.

Founding members of the association include NTT Global Data Centers, Digital Realty, Equinix, AirTrunk, Global Switch, Princeton Digital Group, ST Telemedia Global Data Centres, and Vantage Data Centers.

As businesses globally seek improved connectivity and invest in advanced technologies, the APAC data center colocation market is expected to reach US$19.3 billion in 2023, surpassing North America and securing the top spot worldwide. Anticipated to grow at a 9.9% 5-year CAGR from 2022 to 2028, the APAC market is set to become the second-fastest growing region.

However, this rapid growth places substantial pressure on the data center sector, with increased energy consumption necessitated to accommodate customer demands. Consequently, companies within the industry are compelled to explore strategies for operational efficiency and sustainability to mitigate environmental impacts.

As a part of the APDCA, leading industry players are committed to sharing their collective knowledge to build modern, diversified, and resilient economies in APAC. The objective is to create facilities and services that are competitive, future-proof, and tailored to evolving customer needs.

Members of the association have emphasized their dedication to collaborating with governments to formulate policies promoting the security and resiliency of data centers, minimizing environmental impact, and fostering positive economic contributions to local communities.

Prioritizing local communities is crucial, as data center growth not only generates new jobs but also attracts skilled workforces and prompts upgrades to local public infrastructure. This heightened connectivity is poised to further propel the expansion of the APAC data center industry.

India serves as a notable example within the region, with its thriving data center industry expected to reach US$4.5 billion by 2025, making it the third-largest market in APAC. Similarly, China is experiencing increased demand, evidenced by the launch of its first underwater data center.

Additionally, the APDCA has outlined plans to coordinate and collaborate with its European counterpart, the European Data Centre Association. This collaborative effort signifies a global initiative to strengthen the data center industry and its impact on digital growth.

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