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Service Providers are Realigning their Data Center Capabilities to Address the Growing Cloud Opportunities
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Owing to the growing presence of hyperscale cloud service providers, extensive penetration of Internet connectivity as well as keen focus on cybersecurity and data privacy, the demand for data storage and managed hosting services is expected to grow exponentially across the ASEAN and Taiwan region (henceforth collectively referred to as “ASEAN”). In mature data center markets such as Singapore, which still remains the data center hub in the ASEAN region, the demand for wholesale colocation from global cloud service providers will drive data center services revenue growth.Upcoming data center markets such as Malaysia, Indonesia, and Thailand are poised to experience exponential data center growth due to abundant availability of resources as well as conducive government policies concerning data center infrastructure. Governments in these high-growth markets are vying to increase data center adoption to promote digital transformation across industry sectors through effective strategic partnerships with global as well as local data center vendors as well as offering them tax incentives.Emerging data center markets such as Vietnam and Myanmar are witnessing growing data center penetration, thanks to local service providers, but these countries lack the necessary connectivity and infrastructure capabilities to attract global data center vendors. Governments in these emerging economies, are, therefore, focusing on improving the readiness of these countries to support hyperscale data centers by enhancing telecommunications and network infrastructure.In established data center markets such as Singapore as well as countries witnessing high data center growth rates such as Malaysia, Indonesia, and Thailand, governments have been undertaking several smart city projects as a part of their digital transformation initiatives. Data center service providers are, therefore, adopting innovative solutions such as data center infrastructure management, data center modernization, and edge or modular data centers to optimize operational workloads and enhance service delivery by limiting latency related issues. With rising power costs across the region, many enterprises are taking a keen interest in management capabilities that enable them to generate operational insights into their on-premise data center infrastructure.
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