Southeast Asia (SEA) Datacenters set to witness accelerated growth in the next 5 years

By January 2020Uncategorized

Southeast Asia (SEA) Datacenters set to witness accelerated growth in the next 5 years

Southeast Asia (SEA) Datacenters set to witness accelerated growth in the next 5 years

Southeast Asia as a powerhouse

A report by Cushman & Wakefield estimates that the Southeast Asia Datacenter market is set to achieve a Compounded Annual Growth Rate (CAGR) of 13% in the years 2019 to 2024. The region is projected to achieve accelerated growth in the market as more companies are choosing to develop datacenters in Southeast Asia. Asia-Pacific as a whole, is on track to lead the datacenter market by 2021 with a total market size estimated at US$28 billion. 

Malaysian-based and Japanese-owned company, Regal Orion Bhd Sdn., is in the process of building a US$290m Green Datacenter in Labu, Negeri Sembilan. The datacenter facility will occupy 11,520 square metres of space, and host up to 4,064 racks. Essentially making it the largest facility to be housed within a single site in Southeast Asia. 

Datacenter firm DCI Indonesia, has also begun construction of its third datacenter facility called JK3 in Cibitung, West Java in Indonesia. Toto Sugiri, CEO of DCI, shared that “DCI is ready to become a pioneer who presents the largest hyperscale datacenter facility in Indonesia,”. Furthermore, Indonesia’s stellar growth as a young market is capped off by NTT Communications Corporation, announcing the development of a new datacenter campus at Bekasi, Indonesia.

The greater need for an improved IT infrastructure is driven by the potential for rapid digital economic growth. The ever-increasing development of datacenters in Indonesia is a testament to the improved IT ecosystem. With an enhanced IT infrastructure, companies can depend on reliable and stable data access and ramp up service delivery. 

With its developed infrastructure and vibrant business climate, Singapore is the natural choice for Facebook as their entry point into the Southeast Asian Datacenter Market. This new datacenter will be the first to incorporate the new StatePoint Liquid Cooling system, an innovation targeted at the minimisation of water and power consumption. Additionally, Singapore’s scarcity of land resources was central in Facebook’s datacenter high-rise design, reducing urban sprawl, and maximising land. These innovative approaches signal new paths of growth in mature markets. 

Hosting powerhouse of data

Singapore is projected to lead APAC growth well into 2024, outpacing North America. Considering the land-scare nature of Singapore, Jakarta and Malaysian are next in line for a massive uptick in datacenter growth. Industry giants such as Huawei, Alibaba, and Microsoft are already investing in these countries as a recognition of their market potential.

As its market position evolves, Malaysia will be the beneficiary of green technology becoming the pillar of datacenter design. As the notoriously energy inefficient processes of Datacenters get addressed in more mature markets, an emerging market like Malaysia stands to gain from this new call to action. The abundance of hydro-resources and its geographic nature as a peninsula makes it an ideal candidate for sub-sea cables.

With over 22 cables connected in close proximity to Singapore, Malaysia is seen as a major contender in the region. Malaysia’s public and private sectors, are keen to promote digital transformation through effective strategic partnerships with global and local datacenter vendors. The government of Malaysia is focused on upgrading the telecommunications and network infrastructure to improve readiness for hyperscale datacenters. Considering business continuity plans are already central in rising and mature datacenter markets, the region looks set to achieve healthy growth in the foreseeable future. 

The rapidly changing landscape of Southeast Asia’s Datacenter industry opens the playing field to new entrants, and international heavyweights. W.Media’s series of Cloud and Datacenter Conventions throughout the region, focuses precisely on the vast growth opportunities available. The Conventions are tailored to be country-specific yet fully designed to carve out and capitalize on the local market’s international standing.  Reach out to our consultants to best meet your business and marketing interests. 

Be part of the latest developments in Cloud and Datacenters:

  • Malaysia Cloud & Datacenter Convention, Kuala Lumpur – 27th February 2020 
  • South Korea Cloud & Datacenter Convention, Seoul – 12th March 2020
  • Vietnam Cloud & Datacenter Convention, Hanoi – 8th April 2020
  • Philippines Cloud & Datacenter Convention, Manila – 14th May 2020
  • Singapore Cloud & Datacenter Convention – 16th July 2020
  • Vietnam Cloud & Datacenter Convention, Ho Chi Minh – 27th August 2020 
  • Indonesia Cloud & Datacenter Convention, Jarkata – 24th September 2020 
  • Thailand Cloud & Datacenter Convention, Bangkok – 4th November 2020

Opiah, Abigail, and Antony Savvas. “Regal Orion to Build $289.8m Green Data Centre in Malaysia.” Data Economy, 3 May 2019, data-economy.com/regal-orion-to-build-289-8m-green-data-centre-in-malaysia/.

Opiah, Abigail, and Antony Savvas. “DCI Indonesia Begins Building Its Third Data Centre Facility.” Data Economy, 18 Nov. 2019, data-economy.com/dci-indonesia-begins-building-its-third-data-centre-facility/.

Kwang, Kevin. “Facebook to Build First Asian Data Centre in Singapore, Investing S$1.4 Billion.” CNA, 6 Sept. 2018, www.channelnewsasia.com/news/technology/facebook-data-centre-singapore-jobs-asia-10688962.

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