Strong growth predicted for Asia data center market

Around 70 hyperscale data centers are planned for deployment in Asia over the next 3 years, according to a new research from BroadGroup.

BroadGroup, an event company, suggests in the esearch that the market in Asia continues to expand with growth in capacity and power availability across all countries over the next three years, included in the study. In countries such as Malaysia, growth could be as high as 36%. Outsourcing to third party data centers by companies local to the region is also expected to be sustained.

The firm also points to industry estimates which suggest that around 70 hyperscale data centers are planned for deployment in Asia over the next 3 years.

“2017 will herald large-scale Internet of Things deployments, and the need for new edge computing strategies,” commented Philip Low, chairman of BroadGroup. “Asia has the opportunity to build on increased IT deployment by local and international enterprises making it incredibly timely to bring the first ever Datacloud event here to debate the drivers and challenges now afforded in the region.”

Omer M. Wilson, Senior Director of Marketing, APAC at Digital Realty Data Centres added: “The Asia Pacific region is at the forefront of the digital economy. Many of the markets here are mobile-first which require companies to have a robust IT infrastructure in order to cope with the substantial consumer demand. Naturally, the need for data centres is surging.

“We see a significant opportunity for colocation to close the gap and meet this demand, especially in locations such as China, Hong Kong, Singapore and India where it is critical for them to have effective and efficient ways of running large data centre operations. We expect Asia to continue registering high growth in the colocation market as companies from across the region (and also those entering from other parts of the world) look to agile and flexible data centre solutions that can help them scale up and enable their digital transformations.”

Commenting on the China opportunity, Wing-Dar Ker, President of Shanghai Blue Cloud Technologies Co., Ltd, a wholly-owned subsidiary of 21Vianet Group, Inc said: “Internet companies in China are investing billions into their own cloud businesses in coming years, seeking to take advantage of a market with 680 million internet users. Cloud computing is a strategic priority for the Chinese government, which has piloted cloud schemes in a number of cities, will only drive the growth of data centers further.”

Continued Ker, “The average growth rate of data centers in the next two years is expected to be 35% or above and market demand for cloud computing and internet services combined with a willingness to invest will drive infrastructure build-up in the next few years.”

On provision for the continuing momentum of the Asia data center market, Charles Lee, Founder and CEO of OneAsia commented: “This large wave of growth will definitely request a substantial amount of connectivity for service providers as well as promote network virtualization and software defined networks. The demand for interconnecting or peering between service providers will increase. In view of this, OneAsia is also expanding its data center and connectivity footprints in the Greater Shanghai Area.”

“As the Cloud revolution continues and innovation becomes even more rapid and breath-taking, there will be a rising tide in data center requirements, especially in the emerging markets. Networked data centers and cloud orchestrators will be the big winners in this revolution,” concluded Bill Barney, CEO Reliance Communications and Global Cloud Xchange.