Data Center Market in Southeast Asia

Most Exhaustive Report

Data Center Market in Southeast Asia - Industry Outlook and Forecast 2020-2025

Data Center Market in Southeast Asia

Most Exhaustive Report

Data Center Market in Southeast Asia - Industry Outlook and Forecast 2020-2025

SKU : ARZ200304 Published on : April 2020 Pages : 303


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This market research report on the Southeast Asia data center market covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The market study includes insights on the segmentation by IT Infrastructure (servers, storage, and network ) Electrical Infrastructure (uninterruptible power supply (UPS) systems, generators, rack power distribution units (PDU), transfer switches & switchgears, and other), Mechanical Infrastructure (cooling systems, racks, and Other mechanical infrastructure), Cooling Systems (CRAC & CRAH units, chiller units, cooling towers, dry coolers & condensers, and other cooling units), General Construction (building development, installation and commissioning services, building designs, physical security, data center infrastructure management (DCIM) & building management systems (BMS)), Tier Standards (Tier I and II, Tier III, and Tier IV), and Geography (Singapore, Malaysia, Thailand, and Others).


The Southeast Asia data center market is witnessing growth with the increased interest from cloud providers such as Google, AWS, and Alibaba to open cloud regions. The adoption of cloud-based services will be a key driver for the market in the next few years. Increasing internet penetration is likely to aid the use of smart devices in this region. The impact of big data, IoT, artificial intelligence, and virtual reality will have a major impact on market growth in other southeast countries after 2020. Most colocation providers are involved in the construction of hyperscale data centers to colocate space to cloud service providers. In Southeast Asia, Singapore is a mature market that accounts for, followed by Indonesia, Malaysia, Thailand, and Vietnam. Singapore is the main revenue generator in the APAC region. In 2019, Google announced to expand one of its data center based in Singapore. The country will be the first country to implement 5G technology, which will be followed by other countries by the end of the forecast period. Also, incentives from government agencies will be highly beneficial for continuous investment from both local and global data center developers. Countries such as Thailand, Malaysia, and Indonesia are witnessing an increase in the construction from global colocation providers and REITs targeting wholesale colocation of hyperscale spaces in the market.


  • M&As and Joint Ventures to aid in growing data center Investment that includes Princeton Digital Group and XL Axiata, ST Telemedia and TICON, and Kepple and Salim Group.
  • Indonesia is witnessing strong growth with multiple hyperscale projects expected to add over 100 MW of power capacity during the forecast period
  • Around 10 submarine cable projects are under construction, which will be a major boost for Southeast Asia data center development.
  • The adoption of 2N backup power infrastructure will grow among all facilities because of power reliability challenges
  • The use of renewable energy will increase in Singapore and Thailand data centers, thereby increasing the investment in clean electricity sources during the forecast period.
  • The use of lithium-ion powered UPS systems will be initiated in Singapore, followed by other countries as the price of these systems is likely to lower than VRLA and flywheel UPS during the forecast period

The Southeast Asia data center market is expected to grow at a CAGR of over 6% during the period 2019–2025. 



This research report includes detailed market segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography.



The Southeast Asia market has a high potential for converged and hyperconverged infrastructure as they offer scalability and flexibility to operations. The adoption of storage systems has started shifting to all-flash storage array solutions. The penetration of cloud computing, big data, and IoT technology is expected to be predominant drivers for  the development of the Southeast Asia market. The server market is moving toward blade servers for developing a high-density computing environment. The adoption of organization-specific software over the cloud platform will also increase the demand for high computing servers. The market for ODM servers will also increase as service providers prefer to use servers based on specific usage. The adoption of x86 based servers is more common in the market. Dell EMC, HPE, IBM, Lenovo, Fijustu are some of the major server vendors. The market for storage drives has been growing rapidly from the last five years. The demand for high-performance I/O intensive storage solutions is increasing due to the growing number of applications such as cloud storage services from businesses across the region. The implementation of the 5G network will boost the digital economy in the region, which is likely to increase the demand for high- bandwidth networking infrastructure. 


The adoption of DRUPS systems is likely to be high among data center providers in Southeast Asia. Service providers are installing on-site Diesel Rotary UPS with N+2 and N+1 redundancy. Also, renewable energy and OCP-ready colocation facilities will witness growth during the forecast period in the region. Thailand is marching toward the goal of generating 40% of its electricity from renewable energy by 2030. This will be a positive sign for operators to power their facilities through clean energy. Most large data centers use 2N and N+N redundant power infrastructure solutions for UPS systems and generators. Data centers are being designed at a PUE of less than 1.5. Owing to power reliability challenges, data center operators in Southeast Asia incorporate a flexible design that supports up to 2N redundancy in power infrastructure solutions. All data centers will implement the supply of power from two different electricity grids to avoid outages.  The installation of UPS systems will be mostly of over 500 kVA, and generators with over 1.5 MW with at least 48 hours of on-site fuel backup is growing.


Most data centers in Southeast Asia are designed to cool servers through water-based cooling techniques. The growing construction of data centers will aid in the adoption of multiple chillers, cooling towers, and CRAH units with N+N redundant configuration. Vendors are equipped with 2N resilient water-cooling plants with 2N cooling towers and a service corridor with dual coil CRAC and 2N power supply of up to N+25% resilience. The use of air-based cooling is less in Singapore than in other Southeast Asian countries. In Singapore, data centers are designed with hot/cold aisle containment systems and equipped with a rack size of 42U and 45U. However, the market for rack units with a size of 47U–52U is expected to witness growth during the forecast period.

The Malaysian market comprises facilities that use both air-based and water-based cooling systems. Vendors have installed N+1 redundant cooling systems to support CRAC units, hot and cold aisle design, cold aisle containment for high-density cooling requirements, and directional perforated floor tiles to direct cool air into racks. It is expected that most large data center deployments will use water-based cooling, whereas smaller deployments will use air-based cooling systems. Most small data centers that support a power capacity of less than 2 MW use air-based cooling systems. Large data centers are designed to include wall-penetrating HVAC units that use the water-based cooling technique to cool servers. Data centers that are built as part of commercial deployment will include air-based cooling systems. 


Singapore has several large-scale data centers, and the country is likely to witness the same during the forecast period. In 2019, Facebook and Google announced the development of hyperscale data centers, which are likely to be operational by 2020 or 2021. The labor cost in Singapore is high due to the availability of skilled workforces. In terms of security, data centers are installed with physical security and monitoring systems, including DCIM, BMS, and EMS systems. Most data centers developed in Malaysia during the forecast period will be greenfield development projects. Modular data center projects are likely to witness high growth during the forecast period. The labor cost in Malaysia is cheaper than in Singapore. However, the availability of skilled workforces will be a major challenge. CSF Group is among the prominent data center construction contractors in the region, whose expertise will play a vital role in the growth of the market in Malaysia during the forecast period.

The adoption of DCIM is mostly dependent on the processed infrastructure from vendors operating in the market. The market in Thailand is witnessing an increase in the construction of data centers by local providers. The market in Indonesia is expected to witness a rise in the construction of greenfield projects with a power capacity of over 10 MW. The increasing construction of data centers will provide several opportunities for local contractors to gain expertise in building data centers. The labor cost in the country is low. The physical security infrastructure includes CCTV surveillance, mantraps, biometric access, perimeter gate, and on-site security personnel.


The number of Tier I and Tier II data centers in Southeast Asia has reduced significantly over the last five years because of the increased awareness about the use of redundant infrastructure. UPS and PDU systems of Tier II data centers are equipped with minimum N+N redundancy. All other infrastructure facilities are identified to be working through the single delivery path with no redundancy in most cases. A majority of under-developed projects across the Southeast Asia region fall under the Tier III category. This trend is likely to continue during the forecast period, with several operators expecting to move to the Tier IV category based on the growth in rack power density and critical data center applications.

Most new data centers are designed to be of Tier III standards with a minimum of N+1 redundancy. They can be reconfigured with up to 2N+1 redundancy, with the incorporation of flexible data center designs. Tier IV facilities generate more revenue for the market, with focused investment on highly efficient cooling systems. They involve the adoption of a 2N+1 cooling unit. Hyperscale data centers are considered to be of Tier IV standards in the market, which is a significant boost to the data center market. As of December 2019, there were around nine Tier IV certified data center facilities by Uptime Institute certified in Southeast Asia.


China Mobile International (CMI), Equinix, Global Switch, Google, Iron Mountain, Keppel Data Centers + Huawei, and ST Telemedia were major investors in the data center market in Singapore in 2019. Singapore is a major financial center, and hence a natural colocation hub to serve developing markets in Southeast Asia. The market for cloud computing in Malaysia is not as mature as Singapore. Malaysia has a strong potential for growth in cloud adoption because of several digital transformation initiatives carried out by organizations across industry verticals. This is driving several organizations to invest in cloud systems, which, in turn, is driving the need for local data centers. Regal Orion is a new entrant, that is involved in the development of hyperscale campus in Malaysia.  

In Thailand, the digital transformation is fueling the adoption of cloud-based services, thereby increasing the demand for data centers in the country. The Indonesian market witnesses several hyperscale data center investments, especially from NTT, Space DC, Kepple DC, and DTP. This is aided by the entry by global cloud providers such as Google, AWS, and Microsoft. Also, Alibaba is continuously expanding its data center in Indonesia. Also, GTN, an existing data center operator, can scale up its facility to support up to 20,000 cabinets on full-build. The Indonesian market is witnessing investments from both local and global colocation service providers and enterprises. In 2019, the submarine cable projects - DAMAI Cable System, PASULI, Palapa Ring East, Tanjun Pandan-Sungai Kakap Cable System, and INDIGO-West – which connected Indonesia, Singapore, and Australia. These projects would enhance connectivity in the country.


  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Other Countries


The Southeast Asia data center market (except Singapore) is in the nascent stage. It has a strong potential for growth as many enterprises are migrating from server rooms to cloud or colocation facilities. The market has a strong presence of players such as Cisco, Dell Technologies, HPE, Huawei, Fujitsu, NetApp, Lenovo, and IBM. The direct presence of vendors can be witnessed in a few countries. However, they offer the product through resellers to enterprises across the country. The growing data center construction in the market is prompting vendors to improve the efficiency of solutions being offered in the market.

Many countries in the region suffer from frequent power fluctuations and power outages. This will enable operators to adopt efficient power backup solutions, with UPS systems that offer over 95% efficiency. Schneider Electric, Vertiv, and Delta Power Solutions are among the providers with a strong presence in the market. DRUPS systems are mainly provided by Piller Systems, MTU On-Site Energy, KINOLT (Euro-Diesel), and Hitec Power Protection. The high price of electricity in Singapore will prompt data center operators to consider fuel cells. This may reduce the adoption of UPS systems, generators, and DRUPS systems in the market, creating competition in the market. 

Prominent Data Center Critical (IT) Infrastructure Providers

  • Hewlett Packard Enterprise (HPE)
  • Cisco
  • Dell Technologies
  • Huawei
  • IBM
  • Inspur
  • Lenovo
  • NetApp
  • Fujitsu

 Prominent Data Center Investors

  • AirTrunk Operating
  • China Mobile International Limited (CMI)
  • CSL
  • Digital Realty
  • Equinix
  • Facebook
  • Global Switch
  • Google
  • Iron mountain
  • Katalyst Data Management
  • Keppel DC
  • Kepstar Data Center Management
  • NTT Communications
  • PT Telekomunikasi Group
  • Regal Orion
  • Space DC
  • ST Telemedia Global Data Centres (STT GDC)

 Prominent Construction Contractors

  • Arup
  • AWP Architects
  • CSF Group
  • DSCO Group
  • Faithful+Gould
  • Flex Enclosure
  • Fortis Construction
  • Kienta Engineering Construction
  • M+W Group (Excyte)
  • PM Group
  • Powerware Systems (PWS)
  • Sato Kogyo

Prominent Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Delta Group
  • Eaton
  • Euro-Diesel
  • Fuji Electric
  • Hitachi Hi-Rel Power Electronics
  • Hitec Power Protection
  • KOHLER Group
  • Legrand Group
  • Mitsubishi Electric
  • MTU OnSite Energy (Rolls-Royce Power Systems AG)
  • Piller Systems
  • Rittal
  • Schneider Electric
  • Vertiv

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The report provides the following insights into the Southeast Asia data center market during the forecast period 2020–2025.

  1. It offers comprehensive insights into current industry trends, trend forecasts, and growth drivers about the market in Southeast Asia.
  2. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.
  3. It offers a complete overview of market segments and the regional outlook of the Southeast Asia data center market.
  4. The study offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.


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