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Competition between Data Center Operators is Expected to Intensify Across the Region, Driving Increased Focus on Creating Differentiation, Enhancing Managed Services, Optimized Competitive Strategies and Achieving Relevant Certifications
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With the growing presence of hyperscale cloud service providers, high penetration of Internet connectivity and a 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 ASEAN, the demand for wholesale colocation from global cloud service providers will drive the revenue growth for data center services. Emerging data center markets such as Malaysia, Indonesia and Thailand are poised to experience exponential growth due to abundant availability of resources, coupled with favorable government policies on developing data center infrastructure. Governments are eyeing to increase data center adoption to promote digital transformation across industry sectors through effective strategic partnerships with global and local data center vendors, as well as offering them tax incentives. Markets such as Vietnam 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 their 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.
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