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Credit: Taylor Vick

SEA DC Market to hit revenues of over USD 11 Billion by 2026: Arizton

Published 8 April 2021

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Yihui Xie
W.media | editor
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The Southeast Asia data centre market is expected to grow at a CAGR of approximately 8 per cent during the period 2020−2026, reports Arizton, a market intelligence firm.

The report finds that the market witnessed investments from new entrants such as Stratus DC Management (Singapore and the Philippines), Regal Orion (Malaysia), and Kepstar Data Centre Management (Cambodia) which are developing hyperscale data centre facilities that will be operational in 2021 and 2022.

Currently, the region houses 12 IT infrastructure providers, 17 support infrastructure providers, 15 data centre contractors, and 16 data centre investors across countries.

The most established DC market in Southeast Asia, Singapore, has little land available for greenfield data centres, leading to more brownfield construction, and data centers shifting to other countries such as Malaysia, Indonesia, and Thailand, according to the report.

The Uptime Institute finds that there are around 99 Tier certified data center facilities in Southeast Asia, of which there more than 85 are Tier III and nine are Tier IV certified facilities.

Arizton also reported that most data centres in Southeast Asia adopt DRUPS systems to overcome power outages, and the demand is quite high in the market which will add significant revenue growth to DRUPS vendors operating in this region.

Government entities are strengthening their internet infrastructure in the region with around 10 active submarine connectivity projects underway in Southeast Asia currently.

The server market expects to witness significant growth in the next few years due to increased investments from large cloud service providers in the region. The adoption of converged and hyper-converged infrastructure solutions is projected to increase the demand for servers with multicore processors.

The data centre generator market is likely to grow due to the construction of large and mega facilities across the Southeast Asia region,

As many governments implement environmental regulations, the report expects growth from the adoption of efficient power systems such as gas generators.

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