The Asia Pacific Data Center Colocation Market would witness market growth of 16.2% CAGR during the forecast period (2024-2031).
The China market dominated the Asia Pacific Data Center Colocation Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $12,745.1 million by 2031. The Japan market is expected to witness a CAGR of 15.5% during (2024 - 2031). Additionally, The India market would register a CAGR of 17% during (2024 - 2031).
The e-commerce and retail sector also heavily utilizes colocation services to power their online storefronts, customer data analytics, and AI-driven recommendation engines. Companies like Amazon, Walmart, and Shopify rely on colocation for scalable and high-performance computing infrastructure, ensuring smooth operations during peak traffic periods like Black Friday and Cyber Monday. Colocation supports content delivery networks (CDNs), video streaming services, and online gaming platforms in the media and entertainment industry. Streaming giants like Netflix and Disney+ use colocation to store and distribute vast amounts of high-resolution content, ensuring low-latency streaming experiences for audiences.
Several industry-wide trends are fueling the adoption of data center colocation services. One of the most significant factors is the rise of hybrid and multi-cloud strategies, where enterprises integrate on-premises, public cloud, and colocation infrastructure to optimize IT workloads. Companies increasingly seek carrier-neutral colocation facilities that provide direct connectivity to multiple cloud providers, enhancing network performance and redundancy.
China's booming software and information technology services sector is significantly impacting the demand for colocation data centers. The State Council of the People’s Republic of China reported that the industry generated 12.33 trillion yuan (approximately $1.73 trillion) in business revenue in 2023, reflecting a 13.4% year-on-year increase. This growth rate accelerated by 2.2 percentage points compared to 2022, underscoring the increasing reliance on software-driven solutions. With China’s digital transformation, businesses require large-scale IT infrastructure to support cloud computing, artificial intelligence, and enterprise software applications. As enterprises scale operations and generate massive amounts of data, colocation services efficiently manage data storage, processing, and security without needing in-house data centers. The expansion of China’s IT industry, combined with government-backed digital initiatives, is expected to drive significant investments in colocation data centers. Thus, both India and China are seeing an increasing need for advanced data storage and processing capabilities due to their rapidly evolving financial and IT sectors.
Free Valuable Insights: The Global Data Center Colocation Market is Predict to reach USD 168.68 Billion by 2031, at a CAGR of 15.6%
Based on Type, the market is segmented into Retail Colocation and Wholesale Colocation. Based on Enterprise Size, the market is segmented into Large Enterprises and SMEs. Based on Tier Level, the market is segmented into Tier 3, Tier 4, Tier 1, and Tier 2. Based on End Use, the market is segmented into IT & Telecom, Healthcare, Media & Entertainment, BFSI, Retail, and Other End Use. Based on countries, the market is segmented into China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia Pacific.
By Type
By Enterprise Size
By Tier Level
By End Use
By Country
Our team of dedicated experts can provide you with attractive expansion opportunities for your business.
![North America Data Center Colocation Market Size [2031]](https://www.kbvresearch.com/upload/cover/north-america-data-center-colocation-market.jpg "North America Data Center Colocation Market Size [2031]")
Unique Offerings 