Wednesday, October 18, 2017


Asia to build 70 hyperscale data centres



All countries across the region are expected to see an expansion in data centre offerings with some markets set for a growth rate of up to 36%.

Asia is posed for a wave of hyperscale data centre openings set to top 70 new facilities over the next three years driven by market demand for cloud computing and internet services.

According to researchers at BroadGroup the market in Asia is set to continue to expand with growth in capacity and power availability across all countries over the same period of time.

In countries such as Malaysia, growth could be as high as 36%. Outsourcing to third party data centres by companies local to the region is also expected to be sustained.

Asia accounted at the end of 2016 with more than 20% of the world’s 300 hyperscale data centres, according to Synergy Research. The figure is expected to top 400 facilities by the end of 2018.

The region is expected to grow its stake on the global stage to around 30-32% based on the projected 70 facilities.

Omer M. Wilson, Senior Director of Marketing, APAC at Digital Realty said: “The Asia Pacific region is at the forefront of the digital economy. Many of the markets here are mobile-first which require companies to have a robust IT infrastructure in order to cope with the substantial consumer demand.

“Naturally, the need for data centres is surging. We see a significant opportunity for colocation to close the gap and meet this demand, especially in locations such as China, Hong Kong, Singapore and India where it is critical for them to have effective and efficient ways of running large data centre operations.

“We expect Asia to continue registering high growth in the colocation market as companies from across the region (and also those entering from other parts of the world) look to agile and flexible data centre solutions that can help them scale up and enable their digital transformations.”

Making the case for China specifically, Wing-Dar Ker, President of Shanghai Blue Cloud Technologies, a wholly-owned subsidiary of 21Vianet Group, said that internet companies in China are investing billions into their own cloud businesses in coming years, seeking to take advantage of a market with 680 million internet users.

He said: “Cloud computing is a strategic priority for the Chinese government, which has piloted cloud schemes in a number of cities, will only drive the growth of data centres further.

“The average growth rate of data centres in the next two years is expected to be 35% or above and market demand for cloud computing and internet services combined with a willingness to invest will drive infrastructure build-up in the next few years.”

BroadGroup is this week hosting the first Datacloud Asia and Datacloud Awards in the region at the Capella Hotel, Sentosa Island in Singapore. Data Economy is the official media partner and will be at the event reporting live.