Southeast Asia Data Center Market Landscape Report 2023: A $14.19 Billion Industry by 2028 – Artificial Intelligence Adoption and Data Localization Laws Drive Investments – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Southeast Asia Data Center Market Landscape 2023-2028” report has been added to ResearchAndMarkets.com’s offering.

The Southeast Asia data center market is expected to reach a value of $14.19 billion by 2028 from $9.68 billion in 2022, growing at a CAGR of 6.57% from 2022 to 2028

The Southeast Asia data center market has the presence of IT infrastructure providers such as Broadcom, Arista, Cisco Systems, Dell Technologies, IBM, Lenovo, and others continuously innovating their product offerings to meet customer needs.

Investment from data center projects in Singapore dominates the Southeast Asia data center market. However, the Singapore market witnessed a setback in recent years due to the moratorium on data center construction. The moratorium was lifted in 2022, and the market is expected to bounce back in the next 2-3 years with the ongoing pilot project from the local government for data center construction.

Markets such as Malaysia, Indonesia, and Thailand are witnessing major growth as emerging markets are especially driven by the spillover demand from Singapore. Other markets, such as the Philippines and Vietnam, are emerging as new preferences for data center construction in the region.

KEY TRENDS

Rising Adoption of Artificial Intelligence in the Region

Southeast Asia is among the most significantly growing global markets for adopting advanced technology solutions, including artificial intelligence. Government and business organizations across the region are taking initiatives to adopt such technologies for smart operations.

In November 2021, the Singapore Government planned to invest around USD 133 million in national research and innovation to support AI technology in healthcare and education. In addition, around USD 370 million is funded by the Singapore government in the Research, Innovation, and Enterprise (RIE) 2025 Plan for AI-based activities.

Malaysia plans to develop the next smart city project in Johor using IoT, AI, big data, 5G technology, and autonomous vehicles. Healthcare, fashion & apparel, education, legal, and finance are the major sectors witnessing high adoption of AI in Malaysia.

Data Localization Laws in the Market Will Drive Investments in Data Centers

Data localization law has been a major driver for data center construction in countries where operators must develop facilities to store data and information within their borders. Data localization in Malaysia, Indonesia, and Vietnam has been a boon for the growth of the data center market in such countries.

Various governments have imposed laws on data localization, which can challenge global data center operators looking to enter a particular country in the region. This can be overcome by partnering with local providers with a presence in locations for data center development.

In Singapore, Singapore Digital (SG:D) is a national-level initiative to support Singapore’s digitalization goal and will help different industries achieve their digitalization goals and develop new ecosystems.

In Malaysia, the government introduced a cloud service regulation, which states that cloud services must be licensed under the Applications Service Providers Class license. Companies providing cloud services via local data centers in Malaysia must register under the ASP (C) license.

SEGMENTATION INSIGHTS

Regarding IT infrastructure, the Southeast Asia data center market is expected to shift majorly towards adopting blade servers, switches with a capacity of over 40GbE, and flash storage devices.

The mechanical infrastructure segment is dominated by investments in cooling systems, with a major focus on water-based cooling systems due to the region’s tropical climate. Regarding rack infrastructure, the Southeast Asia data center market is witnessing the adoption of racks with a height of around 42U.

The electrical infrastructure segment is witnessing an increased interest among facilities to procure UPS systems of more than 750 kVA. The adoption of diesel generators majorly dominates the market. Still, with growing needs for sustainability and increasing innovations in generator fuel type, the market is expected to shift from diesel generators to sustainable fuel sources in coming years.

KEY QUESTIONS ANSWERED:

• How big is the Southeast Asia data center market?
• What is the growth rate of the Southeast Asia data center market?
• What is the estimated market size in terms of area in the Southeast Asia data center market by 2028?
• What are the key trends in the Southeast Asia data center market?
• How many MW of power capacity is expected to reach the Southeast Asia data center market by 2028?

Key Attributes:

Report Attribute	Details
No. of Pages	109
Forecast Period	2022 – 2028
Estimated Market Value (USD) in 2022	$9.68 Billion
Forecasted Market Value (USD) by 2028	$14.19 Billion
Compound Annual Growth Rate	6.5%
Regions Covered	Asia Pacific

Vendor Landscape

Prominent IT Infrastructure Providers

• Arista Networks
• Broadcom
• Cisco Systems
• Dell Technologies
• Fujitsu
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
• IBM
• Inspur
• Lenovo
• NetApp
• Oracle

Support Infrastructure Vendors

• ABB
• Airedale
• Caterpillar
• Cummins
• Cyber Power Systems
• Delta Electronics
• Eaton
• Fuji Electric
• HITEC Power Protection
• KOHLER Power
• Legrand
• Mitsubishi Electric
• Narada
• Piller Power Systems
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Trane
• Vertiv

Data Center Construction Contractors

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

Data Center Investors

• AirTrunk
• Amazon Web Services (AWS)
• Big Data Exchange (BDx)
• Bee Information Technology
• Chindata
• CMC Telecom
• Converge ICT Solutions
• DCI Indonesia
• Digital Edge DC
• DITO Telecommunity
• DTP
• ePLDT
• Equinix
• Facebook (Meta)
• FPT Telecom
• Google
• HTC International Telecommunication JSC (HTC-ITC)
• Huawei Technologies
• Iron Mountain
• Keppel Data Centres
• Microsoft
• NTT Global Data Centers
• Open DC
• PP Telecommunication (PPTEL)
• Princeton Digital Group
• SpaceDC
• ST Telemedia Global Data Centres
• Telehouse
• Telkom Indonesia
• True IDC
• Vantage Data Centers
• Viettel IDC

New Entrants

• Data Center First
• Edge Centres
• EdgeConneX
• Evolution Data Centres
• MettaDC
• Nautilus Data Technologies
• OneAsia Network
• Pure Data Centres Group
• YCO Cloud Centers
• Yondr
• YTL Data Center

Scope of the Report

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 Cooling Technique
• Liquid-based Cooling Technique

Segmentation by General Construction

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

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

Segmentation by Geography

• Singapore
• Indonesia
• Malaysia
• Thailand
• Philippines
• Vietnam
• Rest of Southeast Asia

For more information about this report visit https://www.researchandmarkets.com/r/6024c6

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