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Southeast Asia Data Center Market Landscape 2024-2029

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    Report

  • 110 Pages
  • May 2024
  • Region: Asia Pacific
  • Arizton
  • ID: 5661111
1h Free Analyst Time
1h Free Analyst Time

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The Southeast Asia data center market is expected to grow at a CAGR of 9.59% from 2023-2029.

KEY TRENDS

Digitalization Gaining Momentum

  • Prominent Southeast Asian countries such as Singapore, Malaysia, Indonesia, Thailand, and the Philippines are prioritizing digitalization initiatives. Local governments in many of these countries are offering incentives to encourage ongoing digitalization efforts, leading to an increased demand for cloud services. These factors, among others, have become key drivers for the growth and development of the Southeast Asia data center market.
  • The adoption and expansion of 5G services and connectivity is rapidly spreading in the countries. Almost every Southeast Asian country now has 5G connectivity, and many of them have set targets to establish nationwide coverage shortly.
  • The countries in this region share a common goal of advancing activities that lead to long-term digital progress, supported by their respective governments. For example, Malaysia's Digital initiative plays a crucial role in driving the growth of the country's ecosystem across various essential and non-essential sectors. This initiative creates opportunities in the digital economy by leveraging programs such as the Malaysia Digital Catalytic Programs (PEMANGKIN) and others, positioning the country at the forefront of global digital progress.

Increasing Adoption of Cloud-based Services

  • Global cloud services providers like Amazon Web Services, Google, Microsoft, Tencent Cloud, and others have made many investments and set up their dedicated cloud regions in the past in countries like Singapore and Indonesia. They are now actively expanding their presence with planned upcoming cloud regions in Malaysia and Thailand, among other Southeast Asian countries. The companies are also expanding their self-built data center facilities in countries like Singapore.
  • The rising popularity of technologies such as Artificial Intelligence (AI) and machine learning workloads has the potential for significant growth. This is mainly due to the contributions of global cloud service providers like Amazon Web Services, Google, Microsoft, and others. Data center operators are redesigning their facilities to be compatible with AI workloads with the help of liquid-based cooling technologies.
  • Cloud services are continuing to grow and expand in Southeast Asia. Local enterprises increasingly embrace digitalization to gain a competitive edge, acting as a positive catalyst. The demand for cloud services in this region notably rose during the COVID-19 pandemic and continues to surge. This is primarily due to the crucial need for business continuity and the drive to remain relevant and irreplaceable within their specific industries.

SEGMENTATION INSIGHTS

  • The launch of numerous innovative power and cooling systems has emphasized sustainability. Infrastructure providers are increasingly focusing on developing products that minimize environmental impact. In recent years, data center operators have been implementing new and energy-efficient cooling systems intending to reduce power consumption by up to 50%. This trend is expected to continue in the forecast period as market vendors continually invest in developing more efficient products.
  • Countries in this region, such as Indonesia, Malaysia, the Philippines, Singapore, and Thailand, have tropical climatic conditions. As a result, the preferred method for cooling data centers in these countries is mostly water-based, chosen for its cost-effectiveness and ease of implementation. This choice is influenced by the fact that almost all these countries are surrounded by oceans. However, alternative cooling methods like liquid cooling are also viable options to increase energy efficiency and decrease consumption.
  • The Southeast Asia data center market has seen a rise in establishing data centers, particularly those with Uptime Tier III and IV certifications in either the design or construction phases. Many public and private entities, including those in banking, financial services and insurance (BFSI), education, and government sectors, are obtaining the Uptime Institute's Tier III/IV certification either during the design phase or after the facility's completion.

Segmentation by Facility Type

  • Hyperscale Data Centers
  • Colocation Data Centers
  • Enterprise Data Centers

Segmentation by Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Segmentation by IT Infrastructure

  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure

Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Segmentation by Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Other Cooling Units

Segmentation by Cooling Techniques

  • Air-based
  • Liquid-based

Segmentation by General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Physical Security
  • Fire Detection & Suppression
  • DCIM

Segmentation by Tier Standard

  • Tier I & II
  • Tier III
  • Tier IV

GEOGRAPHICAL ANALYSIS

  • The Southeast Asia data center market is heavily influenced by the development of colocation facilities, which attract significant investment. The market continues to expand as new players actively participate in establishing colocation data centers. At the same time, hyperscale data center operators are expanding their presence in the market by making substantial investments in cloud regions. In 2023, countries such as Malaysia, Indonesia, and the Philippines also saw significant investments in enterprise data centers.
  • Despite the moratorium being lifted, Singapore's status as the top location for regional data centers may experience a slowdown due to other detrimental factors. In 2023, the Infocomm Media Development Authority (IMDA) and the Singapore Economic Development Board (EDB) selected four data center operators - Microsoft, AirTrunk, Equinix, and GDS Services - to build new data center facilities with a combined power capacity of about 80 MW.
  • Malaysia's recent investments, particularly in its capital cities of Kuala Lumpur and Johor, have significantly increased over the past two years. As a result, Malaysia's power capacity is expected to exceed 2 GW, with numerous new facilities set to operational in 2024 and 2025. Artificial intelligence has played a significant role in advancing and strengthening Malaysia in recent years.
  • Batam is becoming an important location for data centers in Indonesia, with promising opportunities due to the overflow of demand from Singapore. The construction of new data centers in Singapore slowed after a moratorium on construction was lifted in 2022. Batam's proximity to Singapore means that enterprises in Singapore are considering storing their data in Batam due to cross-border data transfer implications
  • Thailand and the Philippines have also witnessed several new investments during the past few years. A cumulative capacity addition of over 600 MW is in the pipeline, and it will most likely go online during the forecast period.
  • Vietnam's local data center operators, such as VNPT and Viettel IDC, are expected to attract new investments. Additionally, we anticipate that investments from global operators will continue to increase in Vietnam. Potential investments from Gaw Capital and NTT DATA are also seen as positive possibilities.

Segmentation by Geography

  • Southeast Asia
    • Singapore
    • Indonesia
    • Malaysia
    • Thailand
    • Philippines
    • Vietnam
    • Other Southeast Asian Countries

VENDOR LANDSCAPE

  • AirTrunk, Digital Edge, ST Telemedia Global Data Centers, Chindata Group, DCI Indonesia, Digital Realty, Equinix, GDS Services, Keppel Data Centres, NTT DATA, Viettel IDC, and others are among the current major investors in the Southeast Asia data center market.
  • The following companies are among the major support infrastructure vendors in the Southeast Asia data center market: ABB, Airedale, Schneider Electric, Cummins, Legrand, Siemens, Eaton, Rittal, Vertiv, and others. These companies have a strong global presence and have been operating across Southeast Asia for many years. They operate directly in some prominent countries with numerous existing and ongoing ventures. In other countries, they operate through channel partners and distributors, competing with local vendors.
  • Prominent investors such as CtrlS Data Centres, EdgeConneX, Yondr, YTL Data Center, i-Berhad, Gaw Capital, Evolution Data Centres, and others are entering the Southeast Asia data center market, bringing with them a significant presence in other countries. These companies can potentially disrupt the existing market by competing with current players and their customer base.

Key IT Infrastructure Providers

  • Arista Networks
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Extreme Networks
  • Fujitsu
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • Intel
  • IBM
  • Inspur
  • Lenovo
  • NEC
  • NetApp
  • Oracle
  • Quantum
  • Supermicro
  • Seagate Technology
  • Toshiba
  • Western Digital
  • Wiwynn

Prominent Support Infrastructure

  • ABB
  • Airedale
  • Alfa Laval
  • Canovate
  • Caterpillar
  • Cisco Systems
  • Cummins
  • Cyber Power
  • Dell Technologies
  • Delta Electronics
  • EAE Group
  • EATON
  • Envicool
  • Fuji Electric
  • Fujitsu
  • Green Revolution Cooling
  • Hewlett Packard Enterprise
  • HITEC Power Protection
  • Huawei Technologies
  • Kohler
  • Legrand
  • Lenovo
  • Mitsubishi Electric
  • Narada Power
  • Nortek Air Solutions
  • Piller Power Systems
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • Socomec
  • STULZ
  • Trane
  • Vertiv

Prominent Construction Contractors

  • Arup
  • AtkinsRealis
  • Aurecon
  • AWP Architects
  • Corgan
  • CSF Group
  • DPR Construction
  • DSCO Group
  • First Balfour
  • Fortis Construction
  • Gammon Construction
  • ISG
  • Kienta Engineering Construction
  • Linesight
  • LSK Engineering
  • M+W Group (Exyte)
  • Nakano Corporation
  • NTT Facilities
  • Obayashi Corporation
  • PM Group
  • Powerware Systems
  • Red Engineering
  • Sato Kogyo
  • Studio One Design

Prominent Data Center Investors

  • AirTrunk
  • Amazon Web Services (AWS)
  • Beeinfotech
  • Big Data Exchange (BDx)
  • Chindata Group
  • Converge ICT Solutions
  • DCI Indonesia
  • Digital Edge
  • Digital Realty
  • ePLDT
  • Equinix
  • FPT Telecom
  • GDS Services
  • Google
  • Keppel Data Centres
  • MettaDC
  • Microsoft
  • Meta (Facebook)
  • NTT DATA
  • OneAsia Network
  • Open DC
  • Princeton Digital Group (PDG)
  • Singtel
  • ST Telemedia Global Data Centres
  • Telkom Indonesia
  • VADS (Telekom Malaysia)
  • Vantage Data Centers
  • Viettel IDC

New Entrants

  • CtrlS Datacenters
  • Digital Halo
  • EdgeConneX
  • Evolution Data Centres
  • Flow Digital Infrastructure
  • FutureData (Cyclect Group + TSG Group)
  • Gaw Capital
  • i-Berhad
  • Infinaxis Data Centre
  • Infracrowd Capital
  • K2 Data Centres
  • Minoro Energi Indonesia
  • Nautilus Data Technologies
  • Pure Data Centres Group
  • YCO Cloud
  • YTL Data Center
  • Yondr

KEY QUESTIONS ANSWERED

1. What is the growth rate of the Southeast Asia data center market?
2. What are the key trends in the Southeast Asia data center market?
3. How big is the Southeast Asia data center market?
4. What is the estimated market size in terms of area in the Southeast Asia data center market by 2029?
5. How many MW of power capacity is expected to reach the Southeast Asia data center market by 2029?

Table of Contents

1. About the Analyst2. Data Center Capabilities3. What's Included4. Segments Included5. Research Methodology6. Market at Glance7. Premium Insights
8. Investment Opportunities
8.1. Investment: Market Size & Forecast
8.2. Area: Market Size & Forecast
8.3. Power Capacity: Market Size & Forecast
9. Market Dynamics
9.1. Market Opportunities & Trends
9.2. Market Growth Enablers
9.3. Market Restraints
9.4. Site Selection Criteria
10. Facility Type Segmentation
10.1. Hyperscale Data Centers
10.2. Colocation Data Centers
10.3. Enterprise Data Centers
11. Infrastructure Segmentation
11.1. IT Infrastructure
11.2. Electrical Infrastructure
11.3. Mechanical Infrastructure
11.4. Cooling Systems
11.5. Cooling Techniques
11.6. General Construction
12. Tier Standards Segmentation13. Geography Segmentation
14. Southeast Asia
14.1. Market Snapshot & Key Highlights
14.2. Data Center Market by Investment
14.3. Data Center Market by Infrastructure
14.4. Data Center Market by Area
14.5. Data Center Market by Power Capacity
14.6. Data Center Market by Support Infrastructure
14.7. Data Center Market by IT Infrastructure
15. Singapore
15.1. Key Investors & Investments
15.2. Market by Investment
15.3. Key Ftzs and Land Pricing
15.4. Market by Area
15.5. Renewable Energy Adoption
15.6. Market by Power Capacity
15.7. Key Support Infrastructure Adoption
15.8. Market by Infrastructure
16. Indonesia
16.1. Key Investors & Investments
16.2. Market by Investment
16.3. Key Ftzs and Investment Cost
16.4. Market by Area
16.5. Renewable Energy Adoption
16.6. Market by Power Capacity
16.7. Key Support Infrastructure Adoption
16.8. Market by Infrastructure
17. Malaysia
17.1. Key Investors & Investments
17.2. Market by Investment
17.3. Key Ftzs, Area Development and Land Pricing
17.4. Market by Area
17.5. Power Pricing & Renewable Energy Adoption
17.6. Market by Power Capacity
17.7. Key Support Infrastructure Adoption
17.8. Market by Infrastructure
18. Thailand
18.1. Key Investors & Investments
18.2. Market by Investment
18.3. Key Land Pricing and Area Development
18.4. Market by Area
18.5. Power Pricing and Power Addition
18.6. Market by Power Capacity
18.7. Key Support Infrastructure Adoption
18.8. Market by Infrastructure
19. Philippines
19.1. Key Investors & Investments
19.2. Market by Investment
19.3. Key Ftzs & Highlights
19.4. Market by Area
19.5. Power Pricing & Renewable Energy Adoption
19.6. Market by Power Capacity
19.7. Key Support Infrastructure Adoption
19.8. Market by Infrastructure
20. Vietnam
20.1. Key Investors & Investments
20.2. Market by Investment
20.3. Key Ftzs & Land Pricing
20.4. Market by Area
20.5. Renewable Energy Adoption
20.6. Market by Power Capacity
20.7. Key Support Infrastructure Adoption
20.8. Market by Infrastructure
21. Rest of Southeast Asia
21.1. Key Investors & Investments
21.2. Market by Investment
21.3. Key Area Development
21.4. Market by Area
21.5. Renewable Energy Adoption
21.6. Market by Power Capacity
21.7. Key Support Infrastructure Adoption
21.8. Market by Infrastructure
22. Market Participants
22.1. IT Infrastructure Providers
22.2. Support Infrastructure Providers
22.3. Data Center Contractors & Subcontractors
22.4. Data Center Investors
22.5. New Entrants
23. Quantitative Summary
23.1. Appendix
23.2. Abbreviations
23.3. Definitions
23.4. Segmental Coverage

Companies Mentioned

  • Arista Networks
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Extreme Networks
  • Fujitsu
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • Intel
  • IBM
  • Inspur
  • Lenovo
  • NEC
  • NetApp
  • Oracle
  • Quantum
  • Supermicro
  • Seagate Technology
  • Toshiba
  • Western Digital
  • Wiwynn
  • ABB
  • Airedale
  • Alfa Laval
  • Canovate
  • Caterpillar
  • Cisco Systems
  • Cummins
  • Cyber Power
  • Dell Technologies
  • Delta Electronics
  • EAE Group
  • EATON
  • Envicool
  • Fuji Electric
  • Fujitsu
  • Green Revolution Cooling
  • Hewlett Packard Enterprise
  • HITEC Power Protection
  • Huawei Technologies
  • Kohler
  • Legrand
  • Lenovo
  • Mitsubishi Electric
  • Narada Power
  • Nortek Air Solutions
  • Piller Power Systems
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • Socomec
  • STULZ
  • Trane
  • Vertiv
  • Arup
  • AtkinsRealis
  • Aurecon
  • AWP Architects
  • Corgan
  • CSF Group
  • DPR Construction
  • DSCO Group
  • First Balfour
  • Fortis Construction
  • Gammon Construction
  • ISG
  • Kienta Engineering Construction
  • Linesight
  • LSK Engineering
  • M+W Group (Exyte)
  • Nakano Corporation
  • NTT Facilities
  • Obayashi Corporation
  • PM Group
  • Powerware Systems
  • Red Engineering
  • Sato Kogyo
  • Studio One Design
  • AirTrunk
  • Amazon Web Services (AWS)
  • Beeinfotech
  • Big Data Exchange (BDx)
  • Chindata Group
  • Converge ICT Solutions
  • DCI Indonesia
  • Digital Edge
  • Digital Realty
  • ePLDT
  • Equinix
  • FPT Telecom
  • GDS Services
  • Google
  • Keppel Data Centres
  • MettaDC
  • Microsoft
  • Meta (Facebook)
  • NTT DATA
  • OneAsia Network
  • Open DC
  • Princeton Digital Group (PDG)
  • Singtel
  • ST Telemedia Global Data Centres
  • Telkom Indonesia
  • VADS (Telekom Malaysia)
  • Vantage Data Centers
  • Viettel IDC
  • CtrlS Datacenters
  • Digital Halo
  • EdgeConneX
  • Evolution Data Centres
  • Flow Digital Infrastructure
  • FutureData (Cyclect Group + TSG Group)
  • Gaw Capital
  • i-Berhad
  • Infinaxis Data Centre
  • Infracrowd Capital
  • K2 Data Centres
  • Minoro Energi Indonesia
  • Nautilus Data Technologies
  • Pure Data Centres Group
  • YCO Cloud
  • YTL Data Center
  • Yondr

Methodology


Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.

Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.



 

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