Data center markets in South East Asia to increase by 40% in capacity by 2015

The South East Asian markets of Singapore, Malaysia, Thailand and Indonesia will see sustained investment in data centers with a forecast 40% increase in capacity by 2015.

This new report – the 4th edition – by international consulting firm BroadGroup, evaluates 83 vendors with 187 data centers across South East Asia. It reveals significant change in South East Asia’s data center markets. Although the key story is one of continued growth across all markets driven by factors ranging from mobile data to enterprise IT outsourcing, the emergence of cloud and market entry by large scale data center players mainly from the US, is changing the landscape extensively. The modest growth of Singapore’s dominating but mature market contrasts with the rise of Indonesia, albeit from a considerably smaller base.

However, analysis based on research for this report supports the emergence of a more complex picture in describing the evolving regional data center market. The report sees a polarizing trend occurring between the large scale data centers owned mainly by overseas players, deployed in the Singapore hub in contrast with the distribution of smaller and often older data centers recorded in the report, with those of less than 10k m2 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 conditions - land, power, connectivity, governance etc - to realize cost effective self-build. The opportunity is still open to exploit these requirements by Malaysia – a country with extensive land availability and untapped renewable energy resources.”

The report also highlights the rising importance of Indonesia which the forecast predicts will yield a substantial capacity increase of more than 84%, 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.

Forecasts are provided in the report for each country including details of new build plans, power pricing, and covers the profiles of 87 market players.

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Contact Information

Philip Low

MD

BroadGroup

(44) 2071995732

enquiries@broad-group.com