APAC Data Centers in the Age of AI: How HPC Supercharges the Region
The APAC data center market will double from $26.25B (2024) to $52.72B by 2030. Japan, Singapore, and South Korea lead with multi-billion-dollar HPC investments. Advanced cooling technologies are essential as AI workloads drive rack densities beyond 100+ kW. Government incentives create distinctive expansion opportunities across diverse markets.
1. Setting the Stage: APAC's AI & HPC Revolution
In 2020, the most compute-intensive AI model required 0.1 exaflops of training compute. Today's frontier models demand 10,000× more. This exponential growth propels an unprecedented data center boom across Asia-Pacific.
Imagine a skyline of newly minted data centers, each glowing with the promise of HPC-driven breakthroughs. In Asia-Pacific (APAC), this vision transcends science fiction—it manifests in real time. Data center operators scale from Tokyo to Singapore to Seoul to meet the exploding demand for high-performance computing (HPC). The catalyst? AI, generative models, and compute-intensive tasks fuel a race to develop the region's next wave of "AI factories," with HPC as their essential rocket booster.
Market Snapshot:
APAC's data center construction market was USD 26.25 billion in 2024 and projected to double to USD 52.72 billion by 2030, reflecting a CAGR of 12.32%.
Total announced investments: USD 10+ billion across the region (and counting).
HPC and AI hardware spending worldwide: forecast to exceed USD 580 billion by 2035.
In essence, APAC accelerates with HPC as its engine.
2. Japan: Supercomputing Meets Skyrocketing AI Demand
Japan's supercomputing legacy—remember Fugaku?—enters a new era as the local market doubles down on HPC for AI initiatives.
Key Growth Indicators:
Japan's data center processor market will reach USD 2.04 billion in 2024 and more than double by 2030, achieving a 14.42% CAGR.
Government subsidies for AI and semiconductor development (amounting to billions in national support) fuel massive HPC expansions.
Big Projects, Bigger Investments:
SoftBank's AI Platform: Upgrading to 4,000 NVIDIA H100 GPUs (with expansion plans to 10,000 units by the end of 2025).
Sakura Internet: Quintupling its cloud GPU footprint, targeting ~10,000 GPUs.
TSMC's Japanese Fabs: Over USD 20 billion in potential investments for semiconductor plants in Kumamoto.
Ministry of Economy, Trade and Industry Subsidies: ~USD 485 million earmarked explicitly for generative AI supercomputers.
All this computational firepower requires sophisticated housing. Extensive facilities like Tokyo Fuchu Data Center support up to 20 kVA per rack for HPC/GPU servers, while specialists like IDC Frontier offer GPU-friendly environments and advanced cooling. Liquid cooling gains momentum, with solutions like rear-door heat exchangers functioning as "cooling guardians" behind high-power racks.
3. Singapore: A Regional Hub Accelerating Forward
Despite its limited 728 sq km footprint, Singapore hosts 70+ data centers—a density unmatched globally. Despite space constraints, the city-state remains APAC's premier data center hub.
Tiny city-state, massive ambitions. Despite a moratorium on new data centers, Singapore remains the Asia-Pacific headquarters for many tech titans and pours billions into HPC infrastructure.
Headline Investments:
AWS: USD 12 billion for cloud expansions from 2024 to 2028, projected to contribute USD 23.7 billion to Singapore's GDP.
Singtel's Nxera: Launching a new data center brand with facilities in Singapore, Indonesia, and Thailand, offering up to 58MW capacity in the first build, optimized for AI-grade workloads and achieving a PUE of 1.23.
Tech Developments & Cooling:
Liquid cooling, direct-to-chip systems, and immersion setups proliferate, targeting HPC racks exceeding 100 kW.
Sustainability remains central: Singapore enforces stringent environmental guidelines, compelling data centers to pursue greener approaches and lower PUE.
Regulatory Navigation:
The partial moratorium has evolved into a 60 MW new annual capacity structured cap.
Successful applicants must demonstrate PUE below 1.3 and implement innovative cooling technologies.
Multi-cloud strategies frequently combine Singapore with secondary locations in Thailand or Indonesia
4. South Korea: A New HPC Powerhouse
South Korea invests aggressively to establish itself as a global AI leader. Government-led HPC programs rapidly elevate the country to the top ranks of advanced AI infrastructure.
Key Market Data:
Valued at USD 5 billion in 2024, growing to almost USD 10 billion by 2030 (CAGR of 12.06%).
Government's AI infrastructure plan: Over 2.9 billion in public + private investments, plus a strategic initiative to secure 10,000 high-performance GPUs by 2025.
Mega-Projects:
Stock Farm Road's AI Data Center: A planned 3 GW capacity in South Jeolla province, carrying a staggering USD 35 billion price tag. If constructed on schedule (beginning in 2025), it will rank among the world's largest AI data centers.
National AI Computing Center: Targeting one exaflop (upgradable to 2) through private sector collaboration, anchoring a robust HPC ecosystem.
South Korea embraces next-gen cooling—LG Uplus tests immersion systems, and the push toward 20–35% renewables by 2030 underscores a commitment to sustainable AI growth.
5. China: The Dragon-Scale HPC Pioneer
China has methodically built the world's largest HPC ecosystem, with distinctive characteristics setting it apart:
Market Leadership:
China constitutes 40% of APAC's total data center capacity.
The government's "Eastern Data, Western Computing" initiative has established massive computing clusters in western provinces.
Operators deployed over 25,000 hyperscale racks dedicated to AI in 2023 alone
Indigenous Innovation:
Domestic chip development accelerates with Huawei's Ascend and Biren's BR100 series.
Custom cooling solutions optimize extreme density deployments.
China leads the region in immersion cooling adoption with 30+ central installations.
Tencent's Tianjin Facility:
300MW capacity with expansion plans to 1GW
Proprietary liquid cooling technology reduces energy costs by 30%
Serves as the computing backbone for China's large language model development
6. Emerging APAC Players: India, Australia, and Indonesia
Beyond established markets, several countries rapidly develop their HPC capabilities:
India's Digital Revolution:
Data center capacity will triple by 2025 (from 700MW to 2100MW)
The government's $10B semiconductor initiative boosts the local HPC ecosystem.
Adani, CtrlS, and Yotta build large-scale facilities with AI-ready infrastructure.
Australia's Sustainable HPC:
Sydney and Melbourne emerge as regional HPC hubs with a renewable power focus.
NextDC's S3 facility offers dedicated HPC zones with 50kW+ per rack capabilities.
Unique geography enables innovative geothermal and hydroelectric power integration.
Indonesia's Archipelago Advantage:
The Jakarta data center market grows at a 22% CAGR.
Strategic submarine cable connections create an ideal secondary location to Singapore.
Government incentives attract investment from Princeton Digital Group and SpaceDC.
7. HPC Cooling Innovations: Why APAC Turns to Liquid
As HPC scales up, so does its heat generation. Advanced cooling technologies now prove essential for data centers running dense AI workloads:
Direct-to-Chip Cooling
Dominates for HPC racks at 60–120 kW.
Integrates more easily with existing infrastructure compared to full immersion.
Advanced implementations achieve refrigerant-free operation in Japan and Singapore.
Immersion Cooling
Grows fastest where racks exceed 100+ kW.
Delivers high efficiency—but requires specialized planning for fluid handling, server design, and building retrofits.
Single-phase vs. two-phase solutions offer different efficiency/complexity tradeoffs.
Rear-Door Heat Exchangers
Often serve as an interim step for up to ~50 kW/rack.
Function as simpler add-ons to standard server environments.
Allow modular deployment for phased cooling upgrades.
Regional Trends:
China: Leads the immersion charge, with Alibaba reporting up to 20% lower OPEX.
Japan: Tests a mix of direct-to-chip and rear-door solutions, especially in Tokyo's high-rise data center environments.
Singapore: Pioneers sustainable cooling methods, mindful of limited land and stringent environmental policies.
South Korea: Integrates next-gen cooling in new HPC facilities for AI workloads.
8. Challenges Facing APAC's HPC Growth
Despite explosive growth, several challenges could impact expansion timelines:
Power Constraints:
Taiwan faces a 27% energy deficit for planned semiconductor and data center growth
Japan's grid requires significant upgrades to support HPC density
Singapore's 60MW annual cap creates competitive allocation scenarios
Supply Chain Bottlenecks:
GPU shortages will likely persist through 2026
Critical power equipment lead times extend to 50+ weeks
Skilled labor shortages affect specialized cooling installation
Geopolitical Considerations:
US export controls limit high-end GPU access in specific markets
Data sovereignty laws fragment infrastructure deployment patterns
Cross-border data flow regulations increase operational complexity
Sustainability Mandates:
Carbon neutrality commitments necessitate innovative power solutions
Water scarcity in key markets drives the adoption of waterless cooling
Community opposition to extensive facilities necessitates better engagement
9. Growth, Investment, and the APAC HPC Landscape
APAC welcomes HPC with open arms. Consider these critical factors:
Site Selection Decision Framework:
Power Availability: Secure 99.999% reliable power with renewable options
Incentive Structures: Evaluate tax benefits, land cost subsidies, and import allowances
Talent Ecosystem: Assess local technical expertise and specialized workforce
Connectivity: Ensure diverse fiber paths and low-latency connections to key markets
Regulatory Environment: Understand data residency requirements and environmental restrictions
CountryPower Cost ($/kWh), Incentives, Cooling Suitability, Expansion Timeline
Japan 0.14-0.18 High Medium 18-24 months
Singapore 0.12-0.15 Medium Low 24-36 months
South Korea 0.10-0.14 Very High High 12-18 months
China 0.08-0.12 Variable Very High 12-24 months
India 0.09-0.13 High Medium 18-24 months
Capacity Constraints: Some markets (like Singapore) enforce partial moratoriums or strict regulations. In those cases, multi-market strategies—perhaps expansions in Tokyo or new builds in Jakarta—become necessary.
Power & Sustainability: From nuclear expansions in Japan to solar projects in Australia, HPC demands enormous, reliable energy sources. Renewables help offset carbon footprints, especially when governments tie HPC expansions to green mandates.
10. Where Introl Comes In: Your Trusted Partner for APAC HPC
Amid this APAC gold rush, the right ally proves invaluable. Introl offers:
Whether establishing a small HPC cluster in Tokyo or a 300-rack AI campus in Busan, we can handle everything—rack installation, cabling, power configuration, and advanced cooling integration—ensuring your compute environment remains bulletproof.
Our 800+ experts deploy to your site on short notice, which is crucial when expansions or new builds compress timelines.
Structured Cabling & Migration
We specialize in seamless HPC migrations, orchestrating large-scale relocations with minimal downtime—even when your servers cross borders by plane or ship.
11. Looking Ahead: AI Factories and APAC's High-Tech Future
The AI wave crests, and APAC data centers stand at the epicenter. Expect:
2025-2026: The Infrastructure Race
More Liquid Cooling: HPC racks at 120 kW+ will become commonplace, establishing direct-to-chip solutions as the default
National HPC Ambitions: Programs like Japan's generative AI supercomputers or South Korea's 1-exaflop facility represent just the beginning
Hybrid Edge-Core Architectures: Specialized inference facilities will complement centralized training clusters
2027-2030: The Sustainable Evolution
Sustainability as Standard: Renewables, efficient water usage, and green building designs will become table stakes for any new HPC data center
AI-Powered Operations: AI HPCs managed by AI, encompassing predictive maintenance, real-time load balancing, and automated energy optimization
Sovereign AI Infrastructure: Country-specific compute reserves dedicated to national AI priorities
Beyond 2030: The Quantum Horizon
Quantum-Classical Hybrid Facilities: Specialized data centers housing both traditional HPC and quantum systems
Biological Computing Integration: Early commercial deployments of DNA storage and protein-based computing
Completely Carbon-Negative Facilities: Next-generation data centers that actively remove carbon from the atmosphere
The APAC Advantage: Why Now Marks the Moment for HPC Expansion
As AI's computational demands increase 100× in the next five years, APAC stands uniquely positioned with its combination of manufacturing prowess, government support, and technological innovation. The region doesn't merely build infrastructure—it creates the foundation for the next generation of AI breakthroughs.
For enterprises and cloud providers alike, establishing an APAC HPC presence transcends geographic expansion. It offers access to unique capabilities in specialized cooling, power delivery, and technical talent that are becoming increasingly difficult to secure elsewhere.
As we enter this new era of AI-powered innovation, the question shifts from whether to build HPC in APAC to how quickly you can secure your position in the world's most dynamic computing market.
Ready to talk specifics? Book a call with Introl to discuss your APAC HPC journey. In the era of AI, every day of delayed compute represents an opportunity missed, which characterizes the antithesis of success in the world's fastest-growing data center market.
(If HPC represents the rocket, ensure your countdown proceeds flawlessly.)
