Sales of server hardware in the Asia-Pacific region (excluding Japan) rose 36 per cent in 1999 over the previous year's figure to a record value of $7.6 billion ($US4.67 billion), according to IDC.
The rapid market expansion was fuelled by the region's sustained economic recovery, increased spending on Internet-related applications and year 2000-driven spending.
The market also benefited from positive investment sentiment in the corporate and government sectors, according to IDC.
PC servers showed the most rapid growth with sales up 68 per cent over their 1998 level, while sales of high-end servers - costing more than $US1 million - grew just 3 per cent, because of year 2000 concerns in this sector.
The top five markets - Korea, China, Australia, Taiwan and Singapore - accounted for 79 per cent of the regional spending on servers. All the countries in the survey posted double-digit sales growth except New Zealand, IDC said.