Southeast Asia Data Center Market Outlook Report 2021: Tier III Data Center Market Expects to Reach $1.3 Billion in 2026, Growing at a CAGR of Over 8%
Dublin, April 29, 2021 (GLOBE NEWSWIRE) -- The "Data Center Market in Southeast Asia - Industry Outlook and Forecast 2021-2026" report has been added to ResearchAndMarkets.com's offering.
The Southeast Asia data center market by investment is expected to grow at a CAGR of over 8% during the period 2021-2026.
The data center market in Southeast Asia is growing significantly, with multiple investments in Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand. Southeast Asia is among the fastest-growing digital markets worldwide. The internet usage and social media trends have increased the demand for faster internet networks and data centers to store data generated by them. The internet penetration is one of the strongest drivers for the data center market in Southeast Asia.
Moreover, social media usage among consumers and digital transformation by enterprises across industry verticals are other major factors promoting data center growth. The investments are growing significantly across Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand.
In 2020, Equinix, Digital Realty, NTT Global Data Centers, Space DC & GIC, ST Telemedia Global Data Centres, DTP, and DCI Indonesia were major investors in the Southeast Asia data center market.
Southeast Asia Data Center Market Segmentation
The Southeast Asia Data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography. The server market expects to witness significant growth in the next few years due to increased investments from large cloud service providers in the region.
The adoption of converged and hyper-converged infrastructure solutions is projected to increase the demand for servers with multicore processors. The migration of enterprises from on-premises to colocation facilities is likely to aid in the growth of high-performance computing (HPC) infrastructure in the Southeast Asia market.
The data center generator market is likely to grow due to the construction of large and mega facilities across the Southeast Asia region. The adoption of efficient power systems such as gas generators is growing. The implementation of the carbon tax in countries such as Singapore has driven operators to opt for efficient generators.
Although generators are the significant sources of carbon emission, their adoption among facilities continues to grow. However, operators are adopting efficient and cleaner power sources. Innovations in terms of fuel cells are expected to reduce the use of generators during the forecast period.
The Tier III data center market in Southeast Asia expects to reach USD 1.3 billion in 2026, growing at a CAGR of over 8%. There are over 89 tier III certified facilities in seven countries, including Singapore, Indonesia, Malaysia, and Thailand. Indonesia is the major location with around 40 certified facilities. Most new data centers in the region are designed according to Tier III standards with a minimum of N+1 redundancy. The Tier IV data center market is expected to reach over USD 620 million by 2026.
Singapore, Indonesia, Thailand, and Myanmar are witnessing Tier IV facilities' construction, with Indonesia and Thailand accounting for seven Tier IV facilities. Facebook, Apple, Microsoft, and Google are the major contributors to the Tier IV market.
INSIGHTS BY GEOGRAPHY
Singapore is the major data center hub in Southeast Asia, with the presence of several facilities operated by internet, cloud, telecommunication, and colocation service providers. The sub-sea fiber network connectivity routes over 90% of the world's Internet traffic. Singapore has robust fiber connectivity to major APAC data center market and continues to expand its capacity. Many cloud service providers support customers in APAC via Singapore.
The Singapore government is likely to migrate government systems to the cloud. In December 2020, Equinix announced the development of its fifth data center facility in Singapore (SG5), which expects to be operational by Q2 2021. The impact of the COVID-19 pandemic on the Singapore data center market was low as these services were termed as essential.
Singapore is observing investment in renewable energy such as solar and wind sources which are led by hyperscale and colocation data center operators such as Microsoft, Facebook, and Equinix. Renewable energy installations will continue to grow among existing and upcoming facilities across the country.
INSIGHTS BY VENDORS
HPE, Dell Technologies, Fujitsu, NetApp, Inspur, Oracle Huawei, NetApp, and Cisco Systems are among the major revenue contributors in the Southeast Asia data center market share. AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google are expanding their new cloud regions.
These providers are the major adopters of high-density, mission-critical servers, storage infrastructure, and network infrastructure. Schneider Electric, Eaton, Cummins, Vertiv, Rolls Royce Power Systems, HITEC Power Protection Caterpillar, and ABB are the major electrical infrastructure vendors with a strong presence in Southeast Asia.
The infrastructure market in Southeast Asia will witness immense competition with the growing construction of data centers in the next few years.
Market Dynamics
Opportunities & Trends
Rise In 5G Network Connectivity
Increasing Adoption of Renewable Energy
Advanced Technologies In Data Centers
Replacement of VRLA With Lithium-Ion Batteries In Data Centers
Rise In Adoption Of The All-Flash & Hybrid Array
Market Enablers
Impact Of COVID-19 On Data Centers
Increase In Data Center Investments
Increase In Cloud Adoption Driving The Data Center Market
Rise In Deployment Of Submarine Cables
Market Restraints
Security Challenges in Data Centers
Location Restraints for Data Center Construction
Scarcity of Skilled Workforce
Competitive Landscape
Key Data Center Critical (IT) Infrastructure Providers
Arista Networks
Broadcom
Cisco Systems
Dell Technologies
Fujitsu
Hewlett Packard Enterprise (HPE)
Huawei Technologies
IBM
Inspur
Lenovo
NetApp
Oracle
Key Data Center Support Infrastructure Providers
ABB
Bosch Security Systems (Robert Bosch)
Caterpillar
Cummins
Cyber Power Systems
Delta Electronics
Eaton
Fuji Electric
HITEC Power Protection
KOHLER-SDMO
Legrand
Mitsubishi Electric Corporation
Piller Power Systems
Rittal
Rolls-Royce Power Systems
Schneider Electric
Vertiv Group
Key Data Center Contractors
Arup Group
AWP Architects
Aurecon Group
CSF Group
Cundall
DSCO Group
Fortis Construction
Faithful+Gould
Kienta Engineering Construction
LSK Engineering
M+W Group (Exyte)
NTT FACILITIES Group
Nakano Corporation
PM Group
Sato Kogyo
Key Data Center Investors
AIMS Data Centre
AirTrunk Operating
Bridge Data Centres
BDx (Big Data Exchange)
Digital Realty
DCI Indonesia
DTP
Equinix
Iron Mountain
Keppel Data Centres
Kepstar Data Centre Management
NTT Global Data Centers
Regal Orion
Space DC
ST Telemedia Global Data Centres
VADS Berhad
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