• About Us
  • Partnership Opportunities
  • Privacy Policy

Data Center Frontier

Charting the future of data centers and cloud computing.

  • Cloud
    • Hyperscale
  • Colo
    • Site Selection
    • Interconnection
  • Energy
    • Sustainability
  • Cooling
  • Technology
    • Internet of Things
    • AI & Machine Learning
    • Edge Computing
    • Virtual Reality
    • Autonomous Cars
    • 5G Wireless
    • Satellites
  • Design
    • Servers
    • Storage
    • Network
  • Voices
  • Podcast
  • White Papers
  • Resources
    • COVID-19
    • Events
    • Newsletter
    • Companies
    • Data Center 101
  • Jobs
You are here: Home / Cloud / State of the APAC Data Center Market

State of the APAC Data Center Market

By Voices of the Industry - February 27, 2020

State of the APAC Data Center Market

The new Iron Mountain data center in Singapore. (Photo: Iron Mountain)

LinkedinTwitterFacebookSubscribe
Mail

Michael Goh, Senior Director and General Manager for Iron Mountain’s Data Center division for Asia, explores how the APAC data center market is evolving and poised for future growth.

Michael Goh, Senior Director & General Manager, Data Center, Iron Mountain

APAC is one of the fastest developing data center regions in the world. According to Structure Research, the colocation market for Asia Pacific will grow at an expected compound annual growth rate of 12.2% from 2018-2024. Much of the demand comes from global cloud providers, social media platforms, media content and video streaming, e-commerce platforms and banking.

The Asia Pacific region has two distinct segments of data center markets – those which serve regional demand, such as Hong Kong and Singapore, and those which serve mainly domestic markets, such as Tokyo, Shanghai and Australia. There are also several interesting Tier II markets, such as India and Indonesia, which have high population growth, but very low data center capacity at the moment.

Singapore: Gateway to Asia

Most multinational organizations looking to set up a regional office in Asia set their sights on Hong Kong or Singapore. Both are among the largest data center markets in APAC.

I’m writing this from Singapore, which has had a front-row seat to the rapid growth of the APAC data center market in recent years. Though Singapore is a small country just 278 square miles in size, there are almost 60 data centers with a data center footprint of 357 MW. 

For many global organizations, Singapore is their entry to Asia. Having a data center in Singapore allows an organization to easily connect to all countries in the region with multiple redundancy options and the lowest latency.

Singapore has the largest concentration of subsea cables in Asia and offers excellent connectivity to the rest of Asia and the world. Together with its disaster-free location, stable political climate and pro-business climate, it’s an obvious choice for many organizations.

Singapore competes with Hong Kong for multinationals who want to start or grow a business in this region. Hong Kong has traditionally been positioned as the gateway to China, as well as the APAC region. Currently, we’re seeing more demand in Singapore due to what has happened this past year in Hong Kong, and because of the perception that Singapore is more autonomous.

Challenges

In Singapore, land size and power are challenges. Our space is limited. When we grow, we must build higher. Data centers here are multi-stories, at least five to six stories high, which is unique to this region.

As a country, Singapore is working to find more sustainable power solutions. The country currently has a moratorium through 2021 on new data centers in Singapore as it reassesses and searches for a more sustainable power solution.

Japan is one of the biggest economies in the world, and Tokyo is another huge data center market. From a geographical standpoint, Tokyo is between Asia and the West Coast of the US. However, most of the data centers there serve the domestic market.

Singapore ratified the Paris Climate Agreement in 2016, and the country is working hard on its commitment to the agreement. It is searching for sustainable solutions to support its growing data center needs. These questions are not unique to Singapore but are being discussed around the world.

Even though the data center market is mature in Singapore, there is still growth potential in the market.

Other Markets in Asia

Tier II APAC markets also continue to grow, driven by domestic demand. Even in developing nations like Vietnam, there is incredible advancement and dependence on mobile phone technology.

For example, when I was in China a few months ago, I tried to pay for food from a street vendor with cash. They requested payment by mobile phone instead and couldn’t provide change for my cash payment. There is tremendous hyperscale demand growth to capture this domestic demand.

Japan is one of the biggest economies in the world, and Tokyo is another huge data center market. From a geographical standpoint, Tokyo is between Asia and the West Coast of the U.S. However, most of the data centers there serve the domestic market.

Sydney’s data center market also continues to grow. Australia is isolated geographically but has high demand due to its highly digital population. Australia has some of the highest cloud consumption in the world. Many global companies have a presence in Australia.

India has the second largest population in the world – and it’s also one of the youngest. They are facing a huge data boom. Many people have multiple mobile phones. Today the whole of India has only 252 MW of data center power, but it’s obvious that number will skyrocket. There is a lot of big data center development going on in India, especially in Mumbai.

Doing Business in Asia

When looking at the data center market in APAC, it’s important to understand that doing business in Asia is very different than doing business in the U.S. or Europe. Every country in Asia has its own distinct culture, with different languages, laws and customs.

Many companies find it difficult to do business in Tier II countries. Even though they are growing, they have many challenges. There are often barriers of entry – from navigating local laws to understanding how to bring in power or obtain land, to understanding and following the policies involved.

Some countries, like Indonesia or Malaysia, require a local partner to form a company there or do business. That’s why so many organizations head to Singapore or Hong Kong as their entry into Asia. Then, when they go into Tier II markets in Asia, they find a local partner to work with.

These days, there is a lot of private equity coming to the data center market in Asia, and everybody is hoping to have a piece of the market.

What to Look for in a APAC Data Center Partner

If you’re looking for a data center partner in APAC, look for a company that can provide longevity. Make sure they’ll be around for at least the next 10 years and are able to accommodate your business needs at your pace when your organization has the opportunity to do so.

Look for a location with a stable government, with a business-friendly environment. Consider how scalable the country is and how welcoming they are to expansion.

Lastly, look at sustainability. Is green power available to help you meet your corporate responsibility? You want a partner who can support your commitments.

Looking to the Future 

From where I sit in Asia, this is just the beginning of the data center boom. There is great demand for data centers, and that demand is not slowing down anytime soon. It’s an exciting time to be in our industry.

Michael Gohl is Senior Director and General Manager for Iron Mountain’s Data Centers.

LinkedinTwitterFacebookSubscribe
Mail

Tagged With: APAC data center market, Iron Mountain, Singapore

Newsletters

Stay informed: Get our weekly updates!

Are you a new reader? Follow Data Center Frontier on Twitter or Facebook.
voices@richmiller.biz'

About Voices of the Industry

Our Voice of the Industry feature showcases guest articles on thought leadership from sponsors of Data Center Frontier. For more information, see our Voices of the Industry description and guidelines..

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest
  • Twitter

Voices of the Industry

Mitigate Risk, Improve Performance and Decrease Operating Expenses through Data Center Self-Performance

Mitigate Risk, Improve Performance and Decrease Operating Expenses through Data Center Self-Performance If a vendor conducts the actual work in your data center, then you or your operator aren’t maximizing your current operating resources and are experiencing incremental cost and risk. Chad Giddings of BCS Data Center Operations, explains the importance of your data center provider having a high-degree of self-performance.

White Papers

digital modernization

Cloud and the Data Center: How Digital Modernization is Impacting Physical Modular Infrastructure

The pandemic ushered in a digital boom in 2020, driving data center digital modernization efforts at a rapid pace. A new special report from ABB explores how physical infrastructure, the data center, and the cloud are keeping up with new modular solutions delivery and streamlined operational support.

Get this PDF emailed to you.

We always respect your privacy and we never sell or rent our list to third parties. By downloading this White Paper you are agreeing to our terms of service. You can opt out at any time.

DCF Spotlight

Data center modules on display at the recent Edge Congress conference in Austin, Texas. (Photo: Rich Miller)

Edge Computing is Poised to Remake the Data Center Landscape

Data center leaders are investing in edge computing and edge solutions and actively looking at new ways to deploy edge capacity to support evolving business and user requirements.

An aerial view of major facilities in Data Center Alley in Ashburn, Virginia. (Image: Loudoun County)

Northern Virginia Data Center Market: The Focal Point for Cloud Growth

The Northern Virginia data center market is seeing a surge in supply and an even bigger surge in demand. Data Center Frontier explores trends, stats and future expectations for the No. 1 data center market in the country.

See More Spotlight Features

Newsletters

Get the Latest News from Data Center Frontier

Job Listings

RSS Job Openings | Pkaza Critical Facilities Recruiting

  • Electrical Commissioning Engineer - Los Angeles, CA
  • Data Center Construction Project Manager - Ashburn, VA
  • Critical Power Energy Manager - Data Center Development - Dallas, TX
  • Data Center Facilities Operations VP - Seattle, WA
  • Senior Electrical Engineer - Data Center - Dallas, TX

See More Jobs

Data Center 101

Data Center 101: Mastering the Basics of the Data Center Industry

Data Center 101: Mastering the Basics of the Data Center Industry

Data Center Frontier, in partnership with Open Spectrum, brings our readers a series that provides an introductory guidebook to the ins and outs of the data center and colocation industry. Think power systems, cooling, solutions, data center contracts and more. The Data Center 101 Special Report series is directed to those new to the industry, or those of our readers who need to brush up on the basics.

  • Data Center Power
  • Data Center Cooling
  • Strategies for Data Center Location
  • Data Center Pricing Negotiating
  • Cloud Computing

See More Data center 101 Topics

About Us

Charting the future of data centers and cloud computing. We write about what’s next for the Internet, and the innovations that will take us there. We tell the story of the digital economy through the data center facilities that power cloud computing and the people who build them. Read more ...
  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

About Our Founder

Data Center Frontier is edited by Rich Miller, the data center industry’s most experienced journalist. For more than 20 years, Rich has profiled the key role played by data centers in the Internet revolution. Meet the DCF team.

TOPICS

  • 5G Wireless
  • Cloud
  • Colo
  • Connected Cars
  • Cooling
  • Cornerstone
  • Coronavirus
  • Design
  • Edge Computing
  • Energy
  • Executive Roundtable
  • Featured
  • Finance
  • Hyperscale
  • Interconnection
  • Internet of Things
  • Machine Learning
  • Network
  • Podcast
  • Servers
  • Site Selection
  • Social Business
  • Special Reports
  • Storage
  • Sustainability
  • Videos
  • Virtual Reality
  • Voices of the Industry
  • Webinar
  • White Paper

Copyright Endeavor Business Media© 2022