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Increase in Adoption of Data-intensive Technologies to Boost the Growth Pipeline for Colocation Services
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To increase their presence, hyperscale cloud service providers, such as Alibaba, Microsoft, and Amazon Web Services, along with the local cloud vendors, are expanding their infrastructure, operations, and availability across Singapore. With the extensive penetration of Internet connectivity, as well as a keen focus on cybersecurity and data privacy, the demand for data storage and managed hosting services is expected to grow exponentially across the country.The demand for wholesale colocation from global cloud service providers will drive data center services revenue growth in Indonesia. The Indonesian data centers market is considered to be one of the primitive data center markets in the world. However, it is poised to experience exponential growth, due to increase in the migration of OTT participants in Indonesia, increase in IT spending, and deployment of 5G, which will drive the data centers market. Enterprises are looking to increase data centers adoption to promote digital transformation across industry sectors through effective strategic partnerships with global and local data center vendors. The market is expected to be highly competitive in the near future, due to existing and new participants entering and enhancing their data center services. However, lack of data privacy laws can affect the growth in the region.The government of Indonesia is focusing on improving the readiness of the country to support hyperscale data centers by enhancing telecommunications and network infrastructure. The BFSI sector is the primary driver of the demand for data center services, followed by over-the-top (OTT) participants/content service provider (CSPs). As the demand for data centers services is rising, service providers are 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 to create significant competitive differentiation in the market.
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