New World eyes 18 data centre ventures in emerging markets
Published 5 March 2021
Hongkong property giant New World has formed a joint venture, with an aim to set up a network of data centres in emerging markets.
The joint venture deal aims to spend $20 million – $50 million in acquiring each edge-data centre, amidst growing competition in the region.
South China Morning Post reported that Hongkong property giant New World Development is planning to make three acquisitions of existing edge data centres this year through its venture called Turbidite, cocreated by telecommunications industry veterans Bill Barney and Wilfred Kwan. The total of 18 purchases are to be executed over the course of four years and be a part of a forming holding company in two to three years.
Further, the venture by New World will focus on developing so-called edge data centres, which are carrier-neutral and support the online businesses of multinational corporations, global hyperscale data centre operators and large internet companies in the region.
Half of the $54 billion global data centre colocation market is now based in Asia-Pacific region, where it has welcomed the leading of Equinix, Digital Realty, China Telecom, NTT global Data Centres and China Unicom. But there are empty rooms to fill.
“There are roughly 600 data centres across the Asia-Pacific and the Middle East that are not owned by one of the big data centre companies, under a telecoms operator or affiliated with an IT company,” Barney told South China Morning Post last week as he realised the opportunities in areas like Southeast Asia, India and small markets in the Greater Bay area. The exponential growth of online transactions and activities accelerated by the pandemic also creates new competition in this market.
Edge data centres investments are gaining traction these years as it is designed according to the decentralisation model, which allows placing the centres closer to the local end users with smaller facilities than hyperscale operations led by Amazon Web Services, Microsoft Corp, or Facebook.
Experts said that this design helps speed the access and improve the reliability of applications for gaming, streaming and other online content. Supported by multiple power sources and high-bandwidth internet connections, a typical data centre contains large-capacity servers and data storage systems that are used to host cloud computing operations.