Oct 29, 2025
10 mins
Top 10 Colocation Markets in APAC in 2025- Featuring Growth Stats & Providers
Asia-Pacific is the world’s fastest-growing colocation region, driven by AI, cloud expansion, and enterprise demand for low-latency infrastructure. The region’s total colocation capacity is expected to grow from 12.7 GW in 2025 to over 20 GW by 2030, with investment led by China, Japan, Australia, India, and Singapore.
This blog examines the top 10 colocation markets in APAC, analyzing what makes each one critical to the region’s growth. From hyperscale expansion in Singapore and Tokyo to the rise of emerging hubs like Jakarta and Ho Chi Minh City, APAC is reshaping the global data center map.
What makes a Market a Top Colocation Hub in APAC?
A top colocation market in APAC is defined by strong connectivity, reliable power infrastructure, favorable regulation, and enterprise demand. These factors determine whether a city can support low-latency services, hyperscale cloud adoption, and sustainable long-term growth. Enterprises expanding into Asia-Pacific often prioritize hubs that combine rich interconnection ecosystems with scalability and compliance readiness.
Why is Connectivity the Foundation of APAC Colocation Markets?
Connectivity is the foundation because proximity to subsea cable landing points and cloud on-ramps directly reduces latency. APAC’s geography means data often crosses oceans, so markets like Singapore, Sydney, and Tokyo thrive by acting as dense interconnection hubs. Enterprises gain faster, more reliable performance by colocating in cities where subsea cables converge and regional networks interconnect.
How Does Regulation Shape Top Colocation Markets?
Regulation shapes colocation markets by determining how and where APAC data can be stored, processed, and exchanged, influencing site selection and compliance costs for colocation operators. India requires certain types of personal data to remain onshore, China enforces strict cybersecurity laws, and Singapore has managed capacity growth through sustainability-driven moratoriums. These policies influence enterprise location strategies and make regulatory compliance a critical differentiator for top markets.
Why is Sustainability an Emerging Priority for APAC Colocation?
Sustainability is reshaping APAC colocation strategies as investors and customers demand renewable energy, efficient cooling, and transparent carbon reporting. While Australia has growing access to renewables, land-constrained hubs like Singapore and Hong Kong focus on innovative solutions such as district cooling and heat reuse. Top colocation markets are those that can deliver reliable, scalable infrastructure while aligning with ESG goals.
Top 10 Colocation Markets in APAC
Singapore is a top market because it offers dense interconnection with tightly managed, sustainability-led capacity growth. The government’s Green Data Centre Roadmap is unlocking ~300 MW of near-term supply while keeping efficiency standards high, and vacancy remains among APAC’s lowest, signaling durable demand from finance, cloud, and AI workloads.
Development in Tuas/Jurong continues under stricter criteria, sustaining the hub’s role despite land/power constraints.
Key Takeaway: Singapore remains APAC’s benchmark colocation hub, balancing limited land supply with unmatched connectivity and sustainable capacity growth.
Major Colocation Players: Equinix, ST Telemedia Global Data Centres, Digital Realty, Keppel DC REIT, AirTrunk
Where to deploy AI workloads in Singapore.
Tokyo remains critical because it pairs huge enterprise demand with reliable power and expanding land and power in suburban clusters. As central sites tighten, large-scale builds are shifting to Inzai, Chiba, and Saitama to support high-density AI and cloud growth while maintaining proximity to Japan’s customer base and trans-Pacific cables.
Global trend reports continue to list Tokyo among APAC’s core hubs for capacity and developer interest. Over the past year, Tokyo emerged as the leader in net absorption across the APAC region, recording 49.8 MW. This growth was primarily fueled by sustained demand from major technology firms and emerging AI start-ups.
Key Takeaway: Tokyo leads APAC’s colocation market in enterprise demand and AI-driven absorption, supported by reliable power and rapid suburban expansion.
Major Colocation Players: NTT Global Data Centers, Equinix Japan, Colt DCS, Digital Realty, Digital Edge
See hyperscale-ready facilities in Tokyo.
Sydney is a flagship hub thanks to its gateway role for Oceania and direct subsea links to Asia and the U.S. Systems like Southern Cross NEXT (low-latency SYD–LAX/AKL route) and INDIGO underpin cloud on-ramps and international reach. Policy support and growing renewable options make Sydney attractive for ESG-minded enterprises scaling AI and cloud.
Key Takeaway: Sydney anchors Oceania’s colocation ecosystem with global subsea links and strong government backing for sustainable infrastructure growth.
Major Colocation Players: NextDC, Equinix, AirTrunk, CDC Data Centres
Find a data center partner in Sydney.
Mumbai leads India because it concentrates cable landings, network density, and developer pipelines, ranking 6th globally for under-construction capacity. With India targeting rapid capacity expansion, Mumbai anchors international entry while Chennai, Delhi, and Bengaluru rise as complementary markets. The city’s momentum reflects improved land/power access and strong demand from cloud, content, and fintech.
Key Takeaway: Mumbai dominates India’s colocation market as the gateway for global connectivity and hyperscale expansion across the subcontinent.
Major Colocation Players: NTT GDC India, Yotta Infrastructure, CtrlS Datacenters, STT GDC India
Explore colocation providers in Mumbai.
Kuala Lumpur (and Johor)
Kuala Lumpur (with nearby Johor) is surging due to proximity to Singapore, lower cost, and massive inbound capital. Malaysia attracted $31B of digital infra investment and is positioning multi-GW parks and large renewable-backed campuses in Johor to meet AI and cloud demand while managing sustainability trade-offs on power/water.
It’s become the near-Singapore option for scalable capacity. With an impressive growth from almost no data centers in 2019, the province is poised to host at least 1.6 gigawatts of data centers at any given time, making it Southeast Asia's most rapidly expanding data center market.
Key Takeaway: Malaysia is emerging as Southeast Asia’s fastest-growing colocation hub, leveraging proximity to Singapore and billions in new digital investment.
Major Colocation Players: YTL Data Centers, Bridge Data Centres, STT GDC, GDS Holdings, EdgeConneX
Find the best colocation providers in Kuala Lumpur.
Jakarta is climbing on the back of Indonesia’s huge internet population, e-commerce growth, and a fast-ramping build-to-suit pipeline. Installed IT load reached ~659 MW in 2025 with forecasts above 1.1 GW by 2031, and new projects (plus Batam’s 72 MW campus financing) expand regional interconnection options for cross-border workloads. Policy momentum around digital/AI further boosts appeal. Mordor Intelligence+1
Key Takeaway: Jakarta is Southeast Asia’s next major colocation powerhouse, driven by e-commerce demand, digital policy support, and hyperscale investment.
Major Colocation Players: Princeton Digital Group, DCI Indonesia, STT GDC Indonesia, BDx Indonesia, EdgeConneX
Explore data center availability in Jakarta.
HCMC is emerging because Vietnam’s colocation market is scaling fast from $148 M (2024) toward $673 M (2030) (CAGR ~28.7%), driven by cloud, fintech, and media. With ~26 operational colo sites and rising foreign investment interest, HCMC (along with Hanoi) is evolving from secondary to strategic for localized APAC latency. Arizton Advisory & Intelligence+1
Key Takeaway: Ho Chi Minh City is transforming into Vietnam’s leading colocation hub as cloud adoption, fintech, and foreign investment accelerate.
Major Colocation Players: FPT Telecom, Viettel IDC, VNPT IDC, CMC Telecom, Gaw Capital Partners
Compare colocation pricing in Ho Chi Min City now.
Shanghai and Beijing remain indispensable due to China’s scale, strict data-sovereignty rules, and deep enterprise adoption that keeps demand onshore. Regional outlooks consistently place Mainland China among APAC’s largest capacity bases, sustaining multi-tenant and hyperscale pipelines even as operators navigate regulatory complexity. CBRE
Key Takeaway: Shanghai and Beijing anchor China’s colocation dominance through domestic data-sovereignty laws and large-scale enterprise workloads.
Major Colocation Players:China Telecom, Shanghai Data Solution, China Unicom
Melbourne is becoming a top colocation market because supply has nearly tripled to 4.7 GW as of Q2 2025, as operators shift south from land- and power-constrained Sydney. The city now supports dedicated cloud regions from AWS, Microsoft, Google, and Oracle, and AI workloads drive 95% of colocation take-up.
Live IT capacity reached 337.1 MW in 2025 (up 25.4% YoY), with a 934.8 MW pipeline under construction. In the first half of 2025 alone, Melbourne saw 127.6 MW transacted, reflecting its emergence as Australia’s second core hub.
Key Takeaway: Melbourne is emerging as Australia’s second-largest colocation hub, fueled by AI workloads and record multi-gigawatt development.
Major Colocation Players: NextDC, AirTrunk, CDC Data Centres, Equinix
Find hyperscale-ready facilities in Melbourne.
Seoul is reliable because it combines high connectivity with strong demand from gaming, media, telecom, and AI, and maintains a sizable inventory. Seoul, South Korea's largest data center market, boasts 698 MW of inventory.
Despite the new supply, the market maintains strong demand with a vacancy rate below 10%. Due to restrictive government land and power policies, developers are seeking opportunities beyond Greater Seoul. Greater Seoul's existing data centers with over 40 MW of secured power capacity are projected to be fully subscribed imminently. Consequently, there's growing interest in establishing Edge data centers, which can more readily secure power capacities of up to 10 MW.
Key Takeaway: Seoul stands out as a high-connectivity, low-vacancy colocation market powered by gaming, telecom, and AI demand.
Major Colocation Players: KT IDC, LG Uplus, SK Broadband, Digital Realty Korea, Naver Cloud
Why APAC is a Global Colocation Hub
Asia-Pacific is redefining colocation and cloud ecosystems, driving record investment in hyperscale, AI, and sustainable digital infrastructure. From Singapore’s sustainability-first development model to Malaysia’s billion-dollar investment surge and Melbourne’s AI-driven boom, APAC has become a blueprint for the next generation of data centers: interconnected, intelligent, and increasingly green.
As enterprises build their digital edge, success will depend on aligning deployment strategies with the region’s unique mix of regulation, capacity, and connectivity. The future of colocation is unfolding in APAC and now’s the time to stake your place in it.
Explore Real-Time Colocation Availability with Inflect
Want to compare APAC colocation markets in real time? Inflect helps you explore availability, assess providers, and quote instantly across the Far East (East Asia, North Asia, and Southeast Asia) and Oceania. Whether you’re deploying in a major hub like Singapore or Tokyo or exploring growth markets such as Kuala Lumpur, Indonesia, or the Philippines, Inflect makes it seamless to compare APAC colocation markets, analyze capacity, and request quotes to secure infrastructure that powers your enterprise growth.
See real-time colocation availability across APAC with Inflect.
About the Author
Chanyu Kuo
Director of Marketing at Inflect
Chanyu is a creative and data-driven marketing leader with over 10 years of experience, especially in the tech and cloud industry, helping businesses establish strong digital presence, drive growth, and stand out from the competition. Chanyu holds an MS in Marketing from the University of Strathclyde and specializes in effective content marketing, lead generation, and strategic digital growth in the digital infrastructure space.
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