Asia/Pacific Datacenter Market to Grow 3x by 2029, Driven by Cloud, AI, and Hyperscale Growth – IDC –December 23, 2025

According to IDC’s Asia/Pacific Datacenter Deployment Model and Spend Forecast, 2025–2029, the Asia/Pacific datacenter market is on track for strong growth between 2024 and 2029. Total installed IT power capacity is expected to reach 142,600 MW by 2029, supported by a 22% CAGR. Demand for AI, cloud, and other digital services is rising fast, pushing hyperscalers, cloud providers, and digital service operators to expand at record speed.

Major construction and expansion projects across India, Malaysia, Japan, and Southeast Asia are also fueling growth. These new and upgraded facilities are reshaping the region's digital infrastructure as operators work to deliver high-density, scalable, and AI-ready data centers that can meet next-generation compute needs.

At the same time, sustainability and energy efficiency are emerging as critical priorities, with providers investing in renewable energy, advanced cooling, and green building practices to address rising energy consumption and carbon emissions. Compliance with evolving data localization laws is also shaping investment strategies and facility design. As the market grows, technology suppliers must focus on delivering scalable, sustainable, and AI-optimized solutions to capture new opportunities and support the next wave of digital transformation across Asia/Pacific.

“The APEJ datacenter market is rapidly evolving with cloud and AI driving growth, but rising energy use and emissions demand urgent action. Technology suppliers must focus on sustainability and scalable, efficient infrastructure to stay competitive,” says Mikhail Jaura, senior research analyst, Cloud and Datacenter Services, IDC Asia/Pacific.

To learn more, visit: www.idc.com