Executive Summary
The infrastructure services market in APAC continues to make forward progress amid a complex and constantly changing environment. Macroeconomic headwinds are still having an impact, but the underlying conditions are starting to shift, creating new opportunities for growth.
Hyperscale cloud remains the primary growth driver and APAC is uniquely positioned given the presence of both US and Chinese hyperscalers. Though Chinese hyperscale growth levels have visibly slowed, these platforms typically do not engage in self-builds outside China and are committed to the data centre colocation model.
Adding potentially more fuel to the fire is the wave of demand coming from webscale, edge and GPU-based infrastructure. This infrastructure is pushing into the region at a rapid pace and is consuming data centre colocation in the process, with deployments rising to muli-MW levels. The GPU wave is just getting started and already showing signs of priming the demand pipeline in a number of the region’s markets.
Solid indicators for the sector’s long-term growth continue to be out there. CapEx numbers are up, cloud providers are entering new markets or hitting the second wave of expansion in existing markets, while hyperscalers are making multi-billion dollar investments for both skills and training, and data centre and cloud infrastructure.
This report takes a closer look at the most noteworthy themes and developments that took place in the infrastructure services market in 1Q24. It is a regional supplement to Structure Research’s other quarterly update reports.
