Hong Kong is the number one location in Asia Pacific when it comes to suitability for setting up new and outsourced data centers, according to the International Data Corp. Hong Kong is followed by Singapore and Taiwan.
There was no one factor that raised Hong Kong over the other, according to IDC. For example, “natural disasters” is a category from within the non-IT categories where, due to Hong Kong’s history with typhoons means it fairs less well than Singapore that has no real natural disasters to worry about.
Taiwan could improve upon personnel and international connectivity cost, but can do little around natural disasters nor GDP growth, whereas energy and personnel costs were issues for Singapore.
In reality the difference between these three places was quite insignificant, although the difference between them and the next was quite a lot.
According to the recent Asia/Pacific (excluding Japan) Data Center Index study published by IDC, the factors which put these countries in different spots are the energy costs and bandwidth availability.
“Choosing a strategically correct location has become increasingly important for organizations to serve their customers across countries. Hence, the scrutinizing process has to be done very thoroughly and carefully,” says Simon Piff, Associate Vice President of Infrastructure Research, IDC Asia Pacific.
He adds that most countries in Asia are lucrative markets to set up and grow businesses, barring a few which have political and technological environments as deterrent factors.
Businesses will have many reasons for choosing a country, according to IDC. Service providers, for example, will likely look at size of the local and adjacent markets along with regulatory frameworks to decide whether to host a datacenter in-country, whilst other enterprises looking to build their own “captive” datacenter will have other business justifications such as cost and availability of locally, trained resources.
The IDC Asia Pacific Datacenter Index was created due to ongoing interest in locating datacenters into the Asian market.
This IDC update evaluates the 13 countries in Asia/Pacific (excluding Japan) or APeJ to rank them for their suitability for setting up and outsourcing to the datacenters existent in those countries. IDC completed a political, economic, social, technological, legal, and environmental (PESTLE) analysis for each country and considered factors that contribute to operational costs for running the datacenter business. A total of 18 factors were considered for evaluation of all the countries.
The 18 factors cover a range of technical and non-technical data points that IDC Asia Pacific used to evaluate the countries.