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ASEAN data centres to see 40% capacity increase by 2015

Posted: 25 Apr 2013 ?? ?Print Version ?Bookmark and Share

Keywords:data centres? cloud? enterprise IT?

According to the latest report from BroadGroup, the Southeast Asian markets that include Singapore, Malaysia, Thailand and Indonesia will see sustained investment in data centres with a predicted 40 per cent capacity increase by 2015. Although continued growth across all markets is driven by factors ranging from mobile data to enterprise IT outsourcing, the emergence of cloud and market entry by large scale data centre players mainly from the US, is changing the landscape extensively.

However, analysis based on research for the report supports the emergence of a more complex picture in describing the evolving regional data centre market. The report sees a polarizing trend occurring between the large scale data centres owned mainly by overseas players, deployed in the Singapore hub in contrast with the distribution of smaller and often older data centres recorded in the report, with those of less than 10km2 representing more than half of all current facilities.

"Further change which is noted in the report will take place over the next few years," commented Philip Low, managing director of BroadGroup. "We see the new digital park in Singapore as significant, and also the probable entry of new market players. Overseas MNCs will seek either local outsourcing IT hub capabilities or the right combination of conditionsland, power, connectivity, governance realise cost effective self-build. The opportunity is still open to exploit these requirements by Malaysiaa country with extensive land availability and untapped renewable energy resources."

The report also highlights the rising importance of Indonesia that the forecast predicts will yield a substantial capacity increase of more than 84 per cent, albeit starting from a very low base. Thailand demonstrates growth, with disaster recovery and business continuity demand spurred by the recent floods. TCC Technology is currently market leader by capacity.

Based predominantly on qualitative interviews, the report nevertheless points to further change and cites the incumbent telcos who have the resources to expand further in this market space.

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