Colocation and Hyperscale Data Centers are on the Rise Globally - Arizton

CHICAGO, Sept. 27, 2021 /PRNewswire/ -- In the recent years, data center market is rapidly growing in the developing regions. With the increase in deployment of big data, artificial intelligence, and IoT technology, the demand for mission critical and high-performance server systems are likely to increase in the data center market. Cloud infrastructure is gaining high momentum in the global data center market due to rising adoption of digitalization. COVID-19 pandemic has been a strong enabler for further digitization in the data centers.

Arizton's research reports on the data center knowledge base offer an up-to-date analysis regarding the current market scenario, the latest trends and drivers, and the overall market insights. Observing these rapid and drastic changes in demand and supply patterns encouraged the industry analysts at Arizton to publish exhaustive and data-driven insights on these recent trends in the industry.

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1.  Malaysia Data Center Market - Investment Analysis and Growth Opportunities 2021-2026 

Malaysia data center market size will witness investments of USD 1.4 billion by 2026, growing at a CAGR of 7% during 2021-2026. Arizton has identified about 23 unique data center facilities in Malaysia and 5 upcoming facilities.

Malaysia is one of the prime secondary data center markets in APAC and is expected to grow significantly in the coming years. The leading data center operators in Malaysia include VADS, NTT Global Data Centers, AIMS Data Centre, and Bridge Data Centres. The Malaysian government is encouraging hyperscale data center investments in the country by enhancing network infrastructure.

Key Highlights:

• In 2020, the cloud market in Malaysia was estimated to be around USD 2.3 billion. The market is expected to grow 10% YoY. SaaS dominates with a market share of 55%, followed by IaaS at 30%.
• The government and telecommunication service providers are rapidly strengthening the network backbone of the country, including investment in both, terrestrial and submarine cable connectivity, thereby, accelerating the growth of the Malaysia data center market.
• In February 2021, the Malaysian government gave conditional approval to Microsoft, Google, Amazon, and Telekom Malaysia to build hyperscale data centers and cloud services in the country.
• Huawei offered Cloud4Everyone in Malaysia, a trail of 1,500 hours of smart solutions that allowed companies to innovate, digitalize, and automate their businesses.
• The increase in the construction of greenfield data center projects has a strong potential for growth in modular data center projects in Malaysia.

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2.  Thailand Data Center Market - Investment Analysis and Growth Opportunities 2021-2026 

Thailand data center market will witness investments of USD 1015 million by 2026. Arizton has identified about 31 existing facilities in Thailand and 3 upcoming facilities during the forecast period.

Thailand is an emerging colocation market in Southeast Asia, with high scope for growth through new entrants and expansions between 2021 and 2026. Thailand ranks the first among ASEAN countries, and sixth globally for medical tourism, serving over one million tourists annually, leading to high data generation. The Thailand data center market involves both greenfield and brownfield data center construction.

Key Highlights:

• The IoT market in Thailand is driven by consumer related IoT, manufacturing, logistics, and transportation that dominate the adoption of IoT technology.
• The government's Thailand 4.0 initiative promotes the adoption of IoT technology for smart city initiatives, and digital transformation of industries is promoted under the Industry 4.0 initiative.
• The adoption of 100 GbE switches among data centers in Thailand will grow due to cloud data center deployments.
• SUPERNAP Thailand and PTT data center facility are the two facilities certified Tier IV standard by Uptime institute.

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3.  Hong Kong Data Center Market - Investment Analysis and Growth Opportunities 2021-2026 

Hong Kong data center market size will witness investments of USD 4 billion by 2026, growing at a CAGR of 2% during 2021-2026. Arizton has identified about 50 existing facilities and 4 upcoming facilities in the upcoming years.

Hong Kong is one of the most advanced data center markets in APAC. Around USD 5 billion will be invested in core and shell data center development and support across Hong Kong between 2021 and 2026. The country is witnessing investments in about six facilities that are expected to be operational over the next two to three years. In 2020, colocation service providers were the major investors in the Hong Kong market.

Key Highlights:

• Wholesale colocation contributes over 40% of the market share and retail colocation over 55% across Hong Kong.
• The Hong Kong government is expanding fiber network coverage to improve connectivity and government premises are used as base stations for mobile network operators to extend 5G network services to remote areas in the country.
• Diesel generators are widely used by data center operators in Hong Kong with a few operators adopting Diesel Rotary Uninterruptible Power Supply (DRUPS) systems.
• Most data center facilities in Hong Kong are adopting medium- to low-voltage switchgears during the forecast period.
• Many data center providers have adopted brownfield development of their data center facilities due to land shortage in Hong Kong.

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SOURCE Arizton Advisory & Intelligence