Data Center Market in Southeast Asia by Component and Geography - Forecast and Analysis 2021-2025

The data center market share in Southeast Asia is expected to increase by USD 12.60 billion from 2020 to 2025, at a CAGR of 13%.

This data center market in Southeast Asia research report extensively covers data center market segmentation in Southeast Asia by component (IT infrastructure, electrical construction, mechanical construction, general construction, and security solutions) and geography (Singapore, Indonesia, Malaysia, Thailand, and Rest of South-East Asia). The data center market in Southeast Asia report also offers information on several market vendors, including Alphabet Inc., Amazon.com Inc., Colt Technology Services Group Ltd., Digital Realty Trust Inc., Equinix Inc., Global Switch Holdings Ltd., International Business Machines Corp., Microsoft Corp., NTT Communications Corp., and Singapore Telecommunications Ltd. among others.

What will the Data Center Market Size in Southeast Asia be During the Forecast Period?

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Data Center Market in Southeast Asia: Key Drivers, Trends, and Challenges

The increase in application of IoT is notably driving the data center market growth in Southeast Asia, although factors such as the shortage of land in Singapore may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the data center industry in Southeast Asia. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Data Center Market Driver in Southeast Asia

One of the key factors driving market growth in the data center market in Southeast Asia is the proximity to connectivity gateways and the 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. Many colocation service providers and cloud service providers (CSPs) are strategically choosing the locations of their data centers near Internet landing stations, which will enable them to reduce connectivity costs and overall latency. The presence of Internet landing stations is one of the key growth drivers for data centers in any particular region. The presence of a good subsea cable network has been one of the important factors that drive investments in data centers in Singapore. These factors have contributed to the growth of data centers in Singapore.

Key Data Center Market Trend in Southeast Asia

The shift toward large data center facilities is a data center market trend in Southeast Asia that is expected to have a positive impact during the forecast period. In South-East Asia, there is a visible shift toward large multi-storied data center facilities. Land shortage and the high cost of land acquisition are some of the factors that are prompting service providers to build high-capacity multi-story data center facilities. Data centers with 59 megawatts (MW) of information technology (IT) power were considered large in 2019. Colocation service providers and CSPs are looking to build larger data center facilities with higher gross floor areas than that available today. Some service providers are also looking to build multi-storied 150 MW data center facilities in the region. Large data center facilities will have a higher number of storage and computer resources and can serve more clients than small data center facilities. The maintenance of such large data centers is also a simpler task for service providers than the management of multiple small data centers. Such large data centers can also help service providers to remain competitive in terms of pricing.

Key Data Center Market Challenge in Southeast Asia

The shortage of land in Singapore will be a major challenge for the data center market growth in Southeast Asia during the forecast period. 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 total area of Singapore is approximately 446 square miles, and the country is significantly smaller than some of its neighbors in South-East Asia. Other industries in the country also require land. Hence, the availability of land for data centers is limited. These factors, the presence of zoning restrictions, and the need to obtain consent from JTC Corp. complicate issues related to the shortage of land. Multi-story data centers helped combat the shortage of land and enabled service providers to serve more customers. The advent of such data centers also simplified the overall maintenance requirements. Many service providers in Singapore are focusing on building large data centers to combat the shortage of land.

This data center market in Southeast Asia analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the data center market in Southeast Asia as a part of the global internet services and infrastructure market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the data center market in Southeast Asia during the forecast period.

Who are the Major Data Center Market Vendors in Southeast Asia?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Alphabet Inc.
• Amazon.com Inc.
• Colt Technology Services Group Ltd.
• Digital Realty Trust Inc.
• Equinix Inc.
• Global Switch Holdings Ltd.
• International Business Machines Corp.
• Microsoft Corp.
• NTT Communications Corp.
• Singapore Telecommunications Ltd.

This statistical study of the data center market in Southeast Asia encompasses successful business strategies deployed by the key vendors. The data center market in Southeast Asia is fragmented and the vendors are deploying growth strategies such as expanding their geographical presence and entering into long-term partnership contracts with end-users to provide data centers to compete in the market.

Product Insights and News

• Alphabet Inc. - The company data centers that ensures data availability 24*7 and is scalable

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The data center market in Southeast Asia forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Data Center Market in Southeast Asia Value Chain Analysis

Our report provides extensive information on the value chain analysis for the data center market in Southeast Asia, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the internet services and infrastructure market includes the following core components:

• Inputs
• Engineering phase
• Operations
• Marketing and sales
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Data Center Market in Southeast Asia?

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35% of the market's growth will originate from Singapore during the forecast period. Market growth in this region will be slower than the growth of the market in other regions.

The growing demand for colocation centers from local enterprises and new businesses will facilitate the data center market growth in Singapore over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The increasing spread of COVID-19 is posing challenges to the data center market in Singapore. The Government of Singapore imposed a nationwide lockdown in March 2020 to contain the spread of COVID-19 and extended it further by a few weeks. Such measures negatively affected and delayed the construction of data centers, which, in turn, hampered the sales of data center systems. Nevertheless, the market in Singapore is expected to witness significant growth after 2021, as social distancing measures implemented by the Government of Singapore have led to a shift in most business activities online, which has significantly increased data traffic in the country.

What are the Revenue-generating Component Segments in the Data Center Market in Southeast Asia?

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The data center market share growth in Southeast Asia by the IT infrastructure segment will be significant during the forecast period. As the demand for data centers in the region increases, the demand for components such as white box servers will also rise. In South-East Asia, CSPs and colocation service providers are rapidly expanding their data centers. Amazon, Google, and Alphabet are launching many new data centers in Singapore, Malaysia, and Indonesia. This has increased the demand for the white box servers offered by ODMs such as Quanta and Wistron.

This report provides an accurate prediction of the contribution of all the segments to the growth of the data center market size in Southeast Asia and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Data Center Market in Southeast Asia Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive data center market growth in Southeast Asia during the next five years
• Precise estimation of the data center market size in Southeast Asia and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the data center industry in Southeast Asia across Singapore, Indonesia, Malaysia, Thailand, and Rest of South-East Asia
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of data center market vendors in Southeast Asia

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