Asia Pacific to emerge as top hub for next-gen data centre sites

• The rise of edge-to-cloud data management orchestration solutions increases the benefits of running workloads through a robust and well-equipped data centre.
• ABI Research sees an increasing demand for mega and large data centre sites that can support AI/ML workloads, including generative AI.  

Asia Pacific (excluding China) will host the largest number of colocation sites by 2030, accounting for 28 per cent of total colocation sites worldwide.

Europe is the second largest region with 27 per cent, while North America is third with 24 per cent.

This represents a shift compared to 2023, when Europe had the most colocation sites, with 31 per cent of total sites, followed by North America with 27 per cent, and the Asia Pacific (excluding China) with 22 per cent.

According to global technology intelligence firm ABI Research, next-generation colocation data centres will reach 7,640 sites by 2030, growing at an annual rate of 6.8 per cent.

Digital transformation

The acceleration of digital transformation initiatives such as hybrid cloud deployments, Artificial Intelligence (AI) and Machine Learning (ML) solutions, and the implementation of the Internet of Things (IoT) at the edge network continues to generate usage and demand for next-generation data centres.

Data centres will continue playing an integral role in driving enterprises’ digital operations.

“Deployment of cloud-based solutions remains a top agenda for many enterprises, necessitating the demand for data centres. The rise of edge-to-cloud data management orchestration solutions increases the benefits of running workloads through a robust and well-equipped data centre,” Yih-Khai Wong, Distributed and Edge Computing Senior Analyst at ABI Research, said.

Data centres are undergoing a transformation phase. “

“This is necessary as data and workloads are getting more complex, requiring higher processing capabilities. We are seeing an increasing demand for mega and large data centre sites that can support AI/ML workloads, including generative AI,” Wong said.

The emergence of generative AI has also boosted demand for next-generation data centre capabilities, he said, and added that the processing of large language models (LLMs) will require a tremendous amount of data processing power and excellent network connectivity.

“Data centre operators will have to ensure that current and future data centre sites can meet the requirements generated from new technologies,” Wong said.