Report: COVID-19 Is Going To Affect The Data Centre Market In Southeast Asia

Report: COVID-19 Is Going To Affect The Data Centre Market In Southeast Asia

A recent report stated that the data centre market in Southeast Asia is expected to grow at a CAGR of over 6% during the period 2019–2025.

According to a report, COVID-19 is going to affect the data centre market in Southeast Asia, which is witnessing growth due to the increased interest from giant cloud providers such as Google, AWS, and Alibaba to open cloud regions. The report clarified that the increasing adoption of cloud-based services would be a key driver for the data centre market in the coming years. Alongside, the rising penetration of the internet is likely to aid the use of smart devices in this region. 

Further, it stated that the impact of emerging technologies like big data, IoT, artificial intelligence, and virtual reality would also play a significant role in affecting data centre market growth in other southeast countries after 2020.

In fact, the majority of colocation data centre providers are involved in the construction of hyperscale data centres to colocate space to cloud service providers. Case in point, in Southeast Asia, Singapore is a mature market and has been accounted for as the primary revenue generator of the APAC region. The list is then followed by Indonesia, Malaysia, Thailand, and Vietnam. 

The report further noted that last year, Google had announced its expansion of one of its Singapore data centres, and will implement 5G technology. According to the report, the incentives from government agencies will be highly beneficial for continuous investment from both local and global data centre developers. Alongside, countries like Thailand, Malaysia, and Indonesia are also experiencing a growth in the wholesale colocation of hyperscale spaces in the market.

The report also noted some of the critical factors that are contributing to the growth of the data centre market in Southeast Asia during the forecast period, such as the deployment of 5G in order to increase edge data centre investments; increasing adoption of big data and IoT; availability of lithium-ion batteries and fuel cells; and adoption of renewable energy in data centres.

The report also stated that although the data centre market in Southeast Asia is still coming onto its existence, it has a strong potential for growth as many enterprises are migrating from server rooms to cloud or colocation facilities. Cisco, Dell, HPE, Huawei, Fujitsu, NetApp, Lenovo, and IBM are a few of the companies that have a strong presence in the data centre market.

Some of the critical pointers the report has highlighted are:

  • The adoption of storage systems has started to shift towards all-flash storage solutions. 
  • The penetration of technologies like cloud computing, big data, and IoT will be the keydriver for the growth of the Southeast Asia data centre market. Alongside, the adoption of organization-specific software over the cloud platform will also increase the demand for high computing servers. 
  • The adoption of x86 based servers is more common in the market. Also, Dell EMC, HPE, IBM, Lenovo, Fijustu are some of the major server vendors. 
  • The market for storage drives has been increasing from the last five years. 
  • The implementation of the 5G network will boost the digital economy and will increase the demand for high- bandwidth networking infrastructure.

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Sejuti Das
Sejuti currently works as Associate Editor at Analytics India Magazine (AIM). Reach out at

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