SINGAPORE, 29 October 2025 – Driven by an unprecedented surge in enterprise AI adoption and rapid advancements in infrastructure, the AI server and storage market in Asia Pacific (excluding Japan and China) is undergoing a major transformation propelled by next-generation architectures and a growing need for modernized, AI-ready infrastructure. In response to this accelerating momentum, IDC is proud to announce the launch of the quarterly Worldwide AI Infrastructure Tracker — a significant upgrade from its earlier semi‑annual edition. This enhanced tracker provides timely, actionable insights into one of the fastest-growing segments of enterprise infrastructure, capturing the scale of AI infrastructure adoption not only across APeJC but also key markets across worldwide.
According to the latest IDC release, AI server and storage markets in APeJC are projected to grow at a CAGR of 15.1% and 7.6% respectively over the next five years, fueled by rising demand for AI model training, inference workloads, and edge-to-core data integration particularly across key verticals such as service provider, government, telecommunication, education and retail.
Top Trends Shaping the Future of AI Infrastructure in APeJC:
1. Composable, Scalable, AI-Ready: The New Standard for Enterprise Architecture
Enterprises are embracing composable, scalable, AI-ready infrastructure to accelerate AI deployment and maintain agility. Composable infrastructure enables the modular integration of diverse AI components and services, scalability ensures infrastructure can expand with growing data, and AI readiness focuses on strong data management, governance, and operational efficiency. Together, these elements are redefining enterprise architecture, setting new benchmarks for AI/GenAI implementations.
Additionally, as enterprises accelerate operationalizing AI/GenAI at scale, advanced technologies like Retrieval-Augmented Generation (RAG) and Model Context Protocols (MCPs) are rapidly gaining prominence by empowering AI models to access real-time, domain-specific data and interact seamlessly with external systems. These technologies are fuelling increased adoption of on-premises AI deployments driven by the need for precise, context-aware, and efficient AI responses.
2. From Public cloud to On-Prem: Evolving AI Infrastructure Strategies
Amid rising concerns over data sovereignty, latency, and cost, many organizations in APeJC are increasingly interested in shifting from public cloud-based AI deployments toward private cloud and hybrid models. This transition is fuelling demand for on-premises AI servers and high-performance storage systems that offer greater control, security, and customization.
3. Storage Modernization as a Prerequisite for AI Success
The explosive growth of AI data has made storage modernization not just a priority, but a fundamental requirement. AI models require vast amounts of both structured and unstructured data to be stored, accessed, and processed at very high speeds. Hence, enterprises are investing heavily in scalable, high-throughput, ultra-low latency, and secure storage platforms to enable successful AI deployment
A New Era of AI Market
AI has become a boardroom-level priority across every industry, with APeJC emerging as a hub for rapid investment and innovation. “The enterprise infrastructure AI market in Asia Pacific (excluding Japan and China) is poised for significant growth, with nearly $20 billion in investments expected by 2029. Enterprises should take a strategic approach to AI, focusing on clear business outcomes, build scalable robust infrastructure and ensure data quality, governance, and security to deliver sustainable and reliable AI results.” said Cynthia Ho, associate research director at IDC Asia/Pacific.
With IDC quarterly updates now available for the first time, enterprises and tech vendors will benefit from consistent, up-to-date intelligence on AI server and storage deployments across APeJC (Asia Pacific excluding Japan and China), enabling more informed decisions in a rapidly evolving landscape.
For more information about IDC’s Quarterly AI Infrastructure Tracker, please contact Cynthia Ho at cho@idc.com.
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*APeJC – Asia/Pacific excluding Japan and China
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