Report

The Southeast Asia data center market is expected to grow at a CAGR of 6.79% during 2022-2027.

MARKET OVERVIEW

The Southeast Asia data center market in terms of investment is driven by factors such as digitalization initiatives across the countries, subsea and inland connectivity growth, and adoption of technologies such as 5G, big data, IoT, and artificial intelligence.

The region is also witnessing edge data center investments across major and minor cities. For instance, in August 2022, Edge Centres announced the development of its EC61 (Chiang Mai) edge facility in Thailand. The company also has plans to deploy additional facilities, namely, EC63 (Khon Kaen) and EC62 (Phuket). The Southeast Asia data center market is witnessing growth in submarine cable connectivity. For instance, cables such as Southeast Asia Japan Cable, Apricot, and Asia Direct Cable are upcoming submarine cables that will grow the region's connectivity.

DRIVING FACTORS FOR INVESTMENT IN THE REGION

- Investments in the Southeast Asia data center market are skyrocketing across all countries. As of Q1 2022, the market included around 200 operational colocation centers supporting a total IT load of over 1 GW, with around 50 upcoming facilities likely to operate by 2025.
- The region is witnessing increased investments from hyperscale cloud operators as a part of its global expansion strategies.
- In Southeast Asia, Singapore is the leading market for investments. However, owing to the moratorium imposed on data centers by the Singapore government in 2020, investments in neighboring countries, especially Indonesia and Malaysia, have been strong.
- In 2022, the moratorium was lifted, with the pilot phase of sustainable facilities development underway. Once this phase is deemed successful, it will result in strong growth in Singapore from 2024.
- The demand for the cloud has grown significantly across many countries by several business institutions across sectors such as BFSI, Manufacturing, Energy, Oil & Gas, Transportation, and others, which in turn is attracting the cloud service providers to invest in the industry. For instance, Standard Chartered and Microsoft signed a three-year partnership to uplift the digital transformation in the bank by accelerating and deploying its infrastructure into the cloud platform.
- Also, Telecommunication operators are expanding their presence with edge data center facilities. For example, DITO Telecommunity, a new entrant in the Philippines telecom space, deployed edge centers across Iloilo, Roxas, Bulua, Baler, and Ibajay Aklan.

DRIVING FACTORS FOR AREA IN THE REGION

- In terms of the area, the Southeast Asia data center market has witnessed significant growth in the size of centers being developed across the countries. Governments are supporting the market growth in respective countries, which in turn is driving regional investments.
- Operators are opting for investments in special zones for data center construction. For instance, in November 2021, GDS Services announced the land acquisition in Nongsa Digital Park, a special economic zone in Batam, Indonesia, with plans to develop around two centers.
- Governments across several countries are establishing special economic and free trade zones that offer tax incentives for industrial development, easy procurement of industrial land, exemptions on import & export duties, and other benefits. For instance, Vietnam has over 110 special economic zones, including some established for data center developments in the country.
- The scarcity of land for development in Singapore is driving the investments to other markets such as Indonesia, Malaysia, Thailand, the Philippines, and Vietnam.
- The availability of land in some major cities across the region is less, leading to several innovations in the development market. For instance, Keppel Data Centres has partnered with Toll Group to test the feasibility of a floating data center in Singapore based on a modular design.

DRIVING FACTORS FOR POWER CAPACITY IN THE REGION

- In terms of power capacity, the Southeast Asia data center market has adopted several initiatives to make the market more sustainable in recent years.
- Governments across the region are taking up initiatives for making the market sustainable by adopting green energy, reducing carbon emissions, introducing carbon laws, carbon credits, tax incentives for adopting renewable energy, and others.
- The Malaysian government aims to produce around 31% of renewable energy of total power generated in Malaysia by 2025. The majority of renewable energy production will be contributed by solar energy.
- Colocation operator ST Telemedia Global Data Centres has pledged to be carbon neutral by the year 2030, and it announced in November 2021 for purchase of carbon credits in Singapore.
- Several operators are signing power purchase agreements to adopt green energy sources for their operations. For instance, Facebook has signed a power purchase agreement with Sunseap Group under which Sunseap Group will provide renewable energy to the Singapore facility of Facebook.
- In November 2021, PLDT partnered with Mpower to power its VITRO's data center in the Philippines via renewable energy, which will support the government's aim to achieve an energy mix of 50% by 2040. The company has signed a deal to provide 1,500 MW for five to seven years.
- Several countries are witnessing microgrids' establishment that will further aid in adopting greener energy sources. For instance, SP Group has announced investments for microgrid establishment at the Singapore Institute of Technology campus.

SUPPLY & DEMAND IN SOUTHEAST ASIA DATA CENTER MARKET

- On average, the occupancy rate of data centers across Southeast Asia is 60-70%; Singapore is the leading country with occupancy of over 85%.
- In 2020, the moratorium on data center investments in Singapore aided the strong growth of data center demand across Indonesia, Malaysia, and other countries.
- The expansion of cloud regions by hyperscale cloud service providers and internet service providers is fuelling the major demand for services in the region.
- Most of the new announcements are focused on hyperscale development with a full-built capacity of over 20 MW or edge data center facilities.
- On-premise data center operations are higher in sectors such as BFSI, government agencies, and education institutions.
- Local telecommunication providers offering data center services will face severe competition through the entry of multiple operators into the regions.
- The market is witnessing the entry of several new entrants, such as OneAsia Network, Pure Data Centers, Nautilus Data Technologies, SC Zeus, EdgeConneX, Edge Centres, ESR Cayman, GDS Services, and Yondr.

WHY SHOULD YOU BUY THIS RESEARCH?

- Market size available in the investment, area, power capacity, and Southeast Asia colocation market revenue.
- An assessment of the investment in Southeast Asia by colocation and enterprise operators.
- Investments in the area (square feet) and power capacity (MW) across locations in the country.
- Study of the macroeconomic and microeconomic factors across the Southeast Asian countries.
- During the forecast period, a detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the Southeast Asia data center market size.
- Snapshot of existing and upcoming third-party data center facilities in Southeast Asia
- Facilities Covered (Existing): 199
- Facilities Identified (Upcoming): 50
- Coverage: 6 Countries
- Existing vs. Upcoming (Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data center colocation market in Southeast Asia
- Market Revenue & Forecast (2021-2027)
- Retail Colocation Pricing
- The Southeast Asia market landscape investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
- A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
- Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
- A transparent research methodology and the analysis of the demand and supply aspects of the market.

EXISTING VS. UPCOMING DATA CENTERS

- Existing Facilities in the region (Area and Power Capacity)
- Singapore
- Indonesia
- Malaysia
- Thailand
- Philippines
- Vietnam
- List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Southeast Asia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

- IT Infrastructure
- Servers
- Storage Systems
- Network Infrastructure
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Other Cooling Units
- General Construction
- Core & Shell Development
- Installation & commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
- Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
- Geography
- Singapore
- Indonesia
- Malaysia
- Thailand
- Philippines
- Vietnam
- Other Southeast Asian Countries

VENDOR LANDSCAPE

IT Infrastructure Providers
- Arista Networks
- Atos
- Broadcom
- Cisco Systems
- Dell Technologies
- Fujitsu
- Hewlett Packard Enterprise
- Hitachi Vantara
- Huawei Technologies
- IBM
- Inspur
- Juniper Networks
- Lenovo
- NEC
- NetApp
- Oracle
- Quanta Cloud Technology
- Wistron (Wiwynn)

Data Center Construction Contractors & Sub-Contractors:
- Arup
- Aurecon Group
- AWP Architects
- Corgan
- CSF Group
- DPR Construction
- DSCO Group
- Faithful+Gould
- Fortis Construction
- Gammon Construction
- ISG
- Kienta Engineering Construction
- LSK Engineering
- M+W Group
- Nakano Corporation
- NTT Facilities
- PM Group
- Powerware Systems
- Sato Kogyo

Support Infrastructure Providers
- ABB
- Airedale International Air Conditioning
- Caterpillar
- Cummins
- Cyber Power Systems
- Delta Electronics
- Eaton
- Fuji Electric
- HITEC Power Protection
- Kohler
- Legrand
- Mitsubishi Electric
- Piller Power Systems
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- STULZ
- Trane Technologies
- Vertiv

Data Center Investors:
- AIMS Data Centre
- AiTrunk
- Alibaba Cloud
- BDx
- Biznet Data Center
- Bridge Data Centres (Chindata Group)
- DCI Indonesia
- Digital Realty
- EDGE DC
- ePLDT
- Equinix
- Facebook
- FPT Telecom
- Iron Mountain
- Keppel Data Centres
- Microsoft
- NTT Global Data Centers
- Princeton Digital Group
- Regal Orion
- SpaceDC
- ST Telemedia Global Data Centres
- Telehouse
- Telkom Indonesia
- Tencent Cloud
- VADS (Telekom Malaysia)

New Entrants:
- Data Center First
- EdgeConneX
- Edge Centres
- ESR Cayman
- GDS Services
- KT Corporation
- Nautilus Data Technologies
- OneAsia Network
- Pure Data Centres
- Vantage Data Centers
- YCO Cloud Centers
- Yondr
- YTL Data Centers

KEY QUESTIONS ANSWERED
1. How much is the investment in the Southeast Asia data center market expected to grow?
2. What is the growth rate of the Southeast Asia data center market?
3. How many data centers have been identified in Southeast Asia?
4. What are the driving factors for the Southeast Asia data center market?
5. Who are key investors in the Southeast Asia data center market?