Despite a large amount of supply coming through 2015–2016, the data center market in Singapore continues to lead some of its large neighbors in the Asia-Pacific (APAC) region in a race to the top of data center location rankings.
According to Cushman & Wakefield’s Data Center Risk Index, Singapore is the most robust market out of 10 Asian countries in terms of business operations for data centers. Out of 10 Asian countries included in the index, Singapore scored 84.50 out of 100, ahead of Korea (83.23), Hong Kong (78.73) and Japan (76.48).
The Data Center Risk Index identifies the top risks likely to affect data center business operations. It considers such criteria as energy, internet bandwidth, ease of doing business, political stability, natural disaster and energy stability. Singapore ranks strongly for network infrastructure, diverse connectivity to major APAC markets, its pro-business environment and political stability.
Singapore has seen an influx of new data center capacity in the last two years, with an additional 130 MW on top of the existing capacity of 240 MW at the beginning of 2015.
There has been some price and vacancy pressure, particularly among smaller data center players.
However, over the medium to long term, Singapore should be able to expand its capacity by another 100 MW on the back of the Smart Nation initiative, as the government pushes for a national digital transformation program.
Local data center providers such as Singtel, Keppel Data Centres and ST Telemedia stand to be the primary beneficiaries of this, while the international data center providers will continue to focus on winning international deals from medium to large enterprises coming into Singapore.