SEA data centre market to undergo major shifts: Research

• Growth spurt region expected, but competitive landscape to change
• Singapore still the hub, but aggressive plans in Indonesia and Malaysia

 
ANOTHER round of substantial growth is afoot for data centres in the South-East Asian region over the next 24 months, creating a market conservatively estimated at US$3.4 billion by the end of 2017, according to consulting firm BroadGroup.

However, research for the new report Data Center – South East Asia finds clear signs of shift and change ahead that will alter the competitive landscape, it said in a statement.
 
Half of the total market now exists outside of Singapore with a forecast that it will collectively exceed one million sq metres for the first time by the end of this year, based on the countries covered in the report: Brunei, Indonesia, Malaysia, Singapore, Thailand and newcomer Vietnam.

Singapore still remains an epicentre of cloud and data centre activity with a market size exceeding that of the United Kingdom (Europe’s largest) and still adding more capacity, before the close of the year.

Aggressive growth plans in Indonesia (more than half the total population of the region) for space and power, and the readiness and early success of Iskandar Malaysia across the border from Singapore, propose new alternative data centre locations, BroadGroup said.
 
Iskandar Malaysia is a development zone located in the southern Malaysian state of Johor.
 
To the north, Bangkok and nearby areas will see significant growth from its current low base and has the potential to expand into the economies of the Greater Mekong region, BroadGroup said.
 
At least eight new development zones across South-East Asia were identified in the report, typically supported by government initiatives.

Research for the report – which covers 131 operators and 236 facilities – suggests that at least US$1.2 billion of new investment is planned over the next two years, but this figure excludes any future enterprise investments.

“We see the emergence of a changing pattern in the deployment of IT assets in South-East Asia and areas such as Iskandar – the largest development zone so far – competing with the Pearl River Delta, or Greater China economies, rather than other cities or digital parks in the region and also a possible shift away from the traditional Tier 1 city axis used by enterprise investors so far,” the report said.

However, the report warns that dependencies such as the fulfilment of current investment plans, and new initiatives to resolve power and connectivity challenges, still remain critical to the success of forecast growth across the South-East Asia region to the end of 2017.
 
The report also suggests opening private investment in dark fibre installation would accelerate development.

To purchase the report, go here.
 
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