Data centre buildup in Southeast Asia continues

by

3 October 2014
Data centre

The data centre market will continue its momentum in Southeast Asia with investments (excluding outsourcing) reaching about US$2 billion in the next two to three years, according to a new survey by DatacenterDynamics Intelligence (DCDi), the business intelligence division of DatacenterDynamics (DCD).

Across Southeast Asia as a whole, about one third of enterprises said they were looking at some form of new build in the 2014/15 period.

In Singapore, 35 per cent of enterprises surveyed said new build was currently in progress, while another 9 per cent said they were about to start. There has also been a lot of activity surrounding the retrofitting or refresh of existing facilities in the country, with 29 per cent of enterprises reporting that such projects were currently in progress, and 6 per cent indicating that they were about to start.

According to DCDi, investment growth will continue into the longer term as data centre strategies are usually planned in stages.  The report also looked at the main factors driving the continued growth of the data centre industry.

Top of the “critical” list in Singapore were: Shaping client expectations through improved technological delivery (29 per cent regarded this as “critical”, and another 59 per cent deemed it “very important”); relating information and technology to the delivery of business strategy (critical for 23 per cent, very important for 71 per cent); achieving the right strategic balance between in-house facilities, colocation, cloud and vitualised footprint (critical for 23 per cent, very important for 63 per cent); and understanding where the cloud will be in five years’ time (critical for 23 per cent, very important for 51 per cent).

Also very important to many enterprises, although not quite critical, were the need to achieve optimum balance between operating and capital expenditure (71 per cent); identify opportunities and risks in cost reduction (69 per cent); and take advantage of the opportunities presented by big data (65 per cent).

By and large, there has also been a growing focus on value, especially the more established markets within the region, said DCDi. The emphasis for enterprises has been on increasing the value they receive per square metre of  facility  space rather  than  increasing  square  metres,  noted  Nick  Parfitt,  Lead  Analyst  at  DCD Intelligence. “CEOs in Southeast Asia are increasingly asking to see more ROI for each dollar they spend on their data centres.”

More in-depth discussions on data centre developments and trends will be taking place at the first-ever Singapore Data  Centre  Week  (SDCW),  which will be held in Singapore form 13-17 October 2014.

From 14 to 16 October, SDCW will host courses and seminars for data centre professionals. These include the three-day Critical Operations Professional Course and Data Center Power Professional Course. The Critical Operations Professionals Course is an advanced level course designed to cover the successful operation of a data centre by the facilities, moves and changes and cabling teams and is suited for professionals at the management level. The Power Professional Course is for more hands on professionals and provides a granular understanding of the key challenges related to infrastructure investments and how to manage complexities of change.

The DatacenterDynamics Converged EcoSystem Conference & Expo on 17 October will feature thought leaders from governments and the industry and offer insights into best practices, upcoming developments, key issues and successful strategies for current and future data centres. Speakers include Joe Kava, data centre operationse executive at Google; Dr Pantelis Alexopoulos, executive director, Data Storage Institute, A*STAR; Bruce Yang, senior director IDC, Tencent; Peter Hannford, chief executive officer, Datacenterpeople; and Wong Ka Vin, managing director, 1-Net.