Data centre space in Asia Pacific to grow 38.5% in 2018

Singapore already houses 50% of ASEAN data centre capacity.

As data usage continues to grow, requirement for data storage facilities expands as well, with total data centre demand growing 38.5% in 2018.

Quoting BroadGroup, a report by CIMB Research said there could be another round of substantial growth afoot for data centres in ASEAN over the next 24 months, with a market estimated to sit at $4.6 billion (US$3.4 billion) by the end of 2017.

The demand would mainly come from cloud computing, enterprise IT outsourcing, and mobile data.

"Cloud is changing the way IT is being consumed by shifting the need for in-house IT infrastructure to outsourced data centre space. The migration towards outsourced services means that cloud service providers are able to consolidate multiple customers and applications into a single virtualised environment to maximise utilisation and drive cost efficiency," the report said.

With this, data centre space in Asia Pacific could grow from 12.2% total data centres to 38.5% in 2018.

"Meanwhile, we deem that the next wave of data creation and storage have hit the shores of ASEAN. In this aspect, Singapore is the epicentre of cloud and data centre activity," CIMB said.

More so, CIMB noted that Singapore is already home to 50% of ASEAN data centre capacity.

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