Green Data Centers Emerging as a Key Trend for the Data Center Market in Southeast Asia Until 2020, Says Technavio
According to the latest research report released by Technavio, the data center market in Southeast Asia will likely reach USD 359 million by 2020.
This report titled ‘Data Center Market in Southeast Asia 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. To calculate the market size, the report takes into account revenue generated from capital expenditure on IT equipment, power management systems, cooling solutions, general construction, racks, security, and DCIM.
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“Growing carbon emission and increased consumption of electricity by data centers worldwide are prompting the construction of green data center facilities. These services help in achieving energy efficiency in IT operations, and management of power and cooling infrastructure by reducing electricity consumption and carbon footprint. Innovative support for data centers will improve the efficiency of data center facilities, including use of renewable energy sources, free cooling techniques, consolidation, and waste recycling to operate a green data center facility. Google, Amazon, Microsoft, and Facebook are some of the major players who are currently operating green data centers,” said Rakesh Panda, one of Technavio’s lead industry analysts for datacenters
Some of the other driving forces behind the growth of the data center market in Southeast Asia are as follows:
- Increased demand for cloud data centers
- Use of big data analytics
- Internet of Things
- Need for colocation and managed service data centers
Increased demand for cloud data centers
Many large enterprises in Southeast Asia operate data centers for their daily business operations. Global CSPs such as Amazon Web Service, Microsoft Azure, and Google Cloud are operating cloud data centers in Singapore with future expansion plans.
Many small and medium-sized enterprises (SMEs) prefer to run their business operations through CSPs, colocations, and web hosting data centers to avail benefits such as scalability, reliability, and cost reduction. A few cloud data centers, known as mega data centers, consume a lot of power during peak data intensive operations.
The use of social media will also contribute to the growth in Southeast Asian Internet traffic. Demand for public cloud storage will likely grow due to a decrease in cloud storage cost for consumers. By 2020, 50% of the enterprises will be operating their businesses through cloud data centers.
Use of big data analytics
Most business and consumer-based applications generate vast amounts of structured and unstructured data. They also include sensors that generate massive data within a minute. The architecture for data produced by a single business application involving several sources of data, which are of high volume, velocity, and variety.
Big data analytics understands and makes business decisions based on the data. Big data analytics operation among enterprises will grow in Southeast Asia during the forecast period to help them in gaining competitive advantages. Big data analytics is also suitable for large enterprises such as e-commerce solution providers and SMEs with increasing collection of data.
Internet of Things
The number of Internet-connected devices is growing, and it is predicted to boost the data center market in Southeast Asia. Greater use of connected devices will lead to the generation of huge chunks of data. By 2020, IoT-enabled devices will likely increase data center traffic by 20 times in Southeast Asia.
Cloud computing and data analytics play a significant role in connected reality. Data centers are continually upgraded to meet IoT data storage and processing requirement. Many businesses are establishing data centers in Southeast Asia to deal with the growing need for the storage of IoT data. IoT will boost the establishment of large data centers, distributed data centers, and micro data centers facilities worldwide.
Need for colocation and managed service data centers
There are several benefits to an enterprise operating through colocation facilities instead of building its own data center. Enterprises can rent computing servers, storage, and network infrastructure required for their business operational purposes from colocation vendors. It enables minimal utilization of power and bandwidth and enhances the security of enterprise IT equipment.
The capital expenditure associated with building, operating, and updating a data center facility is reduced considerably if a colocation facility is used. Several factors determine the choice of a colocation solution for an enterprise. Colocation services help SMEs to operate through modern infrastructure at reduced subscription costs. The number of such facilities is expected to increase during the forecast period. With an increase in the online presence of enterprises across different industry verticals, managed hosting services are projected to grow significantly over the forecast period.
Browse related reports:
- Global Data Center Market 2015-2019
- Global Data Center Power Market 2015-2019
- Global Data Center Construction Market 2015-2019
- Global Data Center Rack Market 2015-2019
- Data Center Construction Market- Global Report Analysis and Forecast 2015-2019
- Global Data Center IT Equipment Market 2015-2019
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