According to Arizton, Massive Investments by Colocation & Cloud … – Yahoo Finance

CHICAGO, Jan. 24, 2023 /PRNewswire/ -- According to Arizton's latest research report, the Southeast Asia data center construction market will grow at a CAGR of 1.5% from 202-2028. Growing sustainability initiatives, rise in 5G & edge data center deployment, rising adoption of artificial intelligence, and data localization laws in the region are driving the growth of the Southeast Asia data center construction market. Digitalization of business environments, including migration of on-premises applications to cloud/colocation facilities across Southeast Asia, will continue to grow the demand for data center services in the coming years. The region is witnessing increased investments from hyperscale operators and global colocation operators. Investments are expected to continue to grow during the forecast period, with various companies partnering with local companies to expand their footprint in Southeast Asian countries.

SOUTHEAST ASIA DATA CENTER CONSTRUCTION MARKET

Southeast Asia is one of the developing regions in terms of connectivity, and there are several inland connectivity options available in the countries. Singapore, Indonesia, Thailand, Vietnam, Malaysia, the Philippines, and Cambodia can be connected to the US, APAC, Middle East, and African countries. Due to the growing inland connectivity options, the market is witnessing a growth in huge data generation, storage, and connectivity demand. Many countries are developing submarine cables that can transmit data faster with reduced latency. The deployment of cloud regions by hyperscalers and enterprises across the region enhances the need for high-speed interconnection services, fueling the need for submarine cable projects.

Southeast Asia Data Center Construction Market Report Scope

Report Attributes

Details

Market Size - Investment (2028)

USD 3.02 Billion

Market Size- Investment (2022)

USD 2.77 Billion

CAGR - Investment (2022-2028)

1.48%

Market Size -Area (2028)

2.65 million square feet

Power Capacity (2028)

597 MW

Base Year

2022

Forecast Year

2023-2028

Market Segments

Facility Type, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, and Tier Standards

Geographic Analysis

Southeast Asia (Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Other Southeast Asia Countries)

Market Dynamics

Increasing Adoption of Cloud Based Services

Growing Digitalization Initiatives

Increase in Adoption of Big Data & IoT and Smart City Development

A Rise in Submarine Cable Connectivity

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New entrants in the form of global colocation and cloud service providers are investing in the market due to high customer demand for a physical presence. Some new entrants include Data Center First, EdgeConneX, Edge Centres, ESR Cayman, KT Corp, OneAsia Network, Nautilus Data Technologies, Pure Data Centres, and Vantage Data Centers. Governments are also making significant efforts to improve network connectivity by installing 5G network services and IoT solutions. Southeast Asia has improved in terms of connectivity as 5G is spreading at a high pace. This is a major key in attracting foreign direct investments into the Southeast Asia data center market.

Increasing Adoption of Artificial Intelligence Booming the Southeast Asia Data Center Construction Market

AI-based data centers will encourage operators to use data-driven decision-making. AI will also help operators monitor server performance, network congestion, and disk utilization, which will be beneficial in predicting and forecast data and power outages. AI can enhance data center infrastructure and facilitate more intelligent and automated data management. Moreover, deploying AI and ML workloads in data centers will increase the installation of these systems in the future. It is also expected that vendors providing traditional data center cooling systems will partner with liquid immersion and direct liquid cooling vendors to support their existing data center customers in deploying HPC clusters.

Geographical Analysis

Singapore has been a major shareholder in the overall investments in the Southeast Asia data center construction market. However, the market faced challenges led by the moratorium in the country in 2020 and 2021, which was lifted in June 2022, with the authorities announcing invitations for facilities development plans in July 2022.

In 2022, the investments across countries such as Indonesia, Malaysia, and Thailand grew significantly from existing operators along with the entry of new entrants. Other countries, such as the Philippines and Vietnam, have also emerged as new locations that have witnessed an increase in investments for mega and edge data centers.

Several new entrants have been identified in the Southeast Asia data center construction market, including recently established brands and the expansion of China-based operators like GDS Services and OneAsia Network into the Southeast Asian region.

Also, the market is witnessing multiple Joint Venture projects. For instance, in September 2022, Warburg Pincus, a private equity firm, announced a joint venture with Singapore-based Evolution Data Centres to develop hyperscale data centers across the Southeast Asian region.

Other Southeast Asian countries in the market include Cambodia, Laos, and Myanmar. Data centers in these countries are still evolving and are expected to witness significant growth with contributions from local and global providers during the forecast period.

The Report Includes the Investment in the Following Areas:

Major Vendors

Support Infrastructure Vendors

ABB

Airedale

Caterpillar

Cummins

Cyber Power Systems

Delta Electronics

Eaton

Fuji Electric

HITEC Power Protection

KOHLER Power

Legrand

Mitsubishi Electric

Narada

Piller Power Systems

Rittal

Rolls-Royce

Schneider Electric

Siemens

STULZ

Trane

Vertiv

Data Center Construction Contractors

Data Center Investors

AirTrunk

Amazon Web Services (AWS)

Big Data Exchange (BDx)

Bee Information Technology

Chindata

CMC Telecom

Converge ICT Solutions

DCI Indonesia

Digital Edge DC

DITO Telecommunity

DTP

ePLDT

Equinix

Facebook (Meta)

FPT Telecom

Google

HTC International Telecommunication JSC (HTC-ITC)

Huawei Technologies

Iron Mountain

Keppel Data Centres

Microsoft

NTT Global Data Centers

Open DC

PP Telecommunication (PPTEL)

Princeton Digital Group

SpaceDC

ST Telemedia Global Data Centres

Telehouse

Telkom Indonesia

True IDC

Vantage Data Centers

Viettel IDC

New Entrants

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According to Arizton, Massive Investments by Colocation & Cloud ... - Yahoo Finance