Data Center Market in Southeast Asia 2019-2023

Data Center Market in Southeast Asia 2019-2023

  • May 2019 •
  • 139 pages •
  • Report ID: 4342319 •
  • Format: PDF
About this market
A major factor contributing to the growth of the data center market in Southeast Asia is digital transformation initiatives and efforts. Digital transformation initiatives are among the key priorities of the governments of several countries in Southeast Asia. Singapore topped the rankings in the Asian Digital Transformation Index 2018. Digital transformation has been among the top priorities of the country. Digital transformation efforts such as digital transactions. cybersecurity, and accounting require flexible and agile data centers to support the changing needs of organizations. Analysts have predicted that the data center market in Southeast Asia will register a CAGR of over 14% by 2023.

Market Overview
Proximity to connectivity gateways and presence of strong submarine cable networks
Internet landing stations, which are also sometimes called connectivity gateways, are locations where submarine cables connect to the network infrastructure of a particular region. Such stations are strategically located in areas where marine traffic is minimal to reduce the risk of damage to cables by objects such as the anchors of ships. The presence of strong submarine cable networks and proximity to Internet lancing stations such as the Changi Cable Landing Station help control connectivity costs and reduce latency. These factors have contributed to the growth of data centers in Singapore.
Shortage of land in Singapore
Singapore has emerged as a preferred destination for data center operators due to its network infrastructure and the presence of Internet landing stations, favorable government policies, and a conducive business environment. However, data center operators are exposed to zoning restrictions and a shortage of land. The presence of zoning restrictions, and the need to obtain consent from Jurong Town Corporations complicate issues related to the shortage of land.
For the detailed list of factors that will drive and challenge the growth of the data center market in Southeast Asia during the 2019-2023, view our report.

Competitive Landscape
The market appears to be fairly concentrated and with the presence of few companies including NTT Communications Corp. and Singapore Telecommunications Ltd. the competitive environment is quite intense. Factors such as the proximity to connectivity gateways and presence of strong submarine cable networks and digital transformation initiatives and efforts, will provide considerable growth opportunities data center market in Southeast Asia manufactures. Amazon Web Services Inc., Digital Realty Inc., Equinix Inc., NTT Communications Corp., and Singapore Telecommunications Ltd. are some of the major companies covered in this report.