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What does 2016 hold for Asia’s data centre market?

Clement Goh, Managing Director Southeast Asia, Equinix | Dec. 22, 2015
The data centre sector has been part of a sea of change over the years, and 2016 looks set to be no different, says Clement Goh of Equinix.

While there is, and will certainly continue to be, demand in other countries in the region, larger scale deployments are concentrated in Singapore. It is natural for Malaysia, Indonesia and Thailand to leverage their landmass advantage to vie for a bigger piece of the pie. However, simply having ample space, and a stable supply of power,is no longer enough to give a country an edge in the market.

Singapore's trump card lies in its ability to provide both data centre providers and users with heightened connectivity.

The establishment of submarine cable systems has proven to be a pivotal factor in determining Singapore's pole position in the region. The city benefits from 15 submarine cable systems able to provide high bandwidth capacity, especially important to businesses operating in industries that demand network-rich infrastructure, such as Finance. These cables also give customers scalable, low-cost and low-latency connectivity - a desirable advantage for multi-national companies and startups with global expansion plans.

As a result, a multitude of companies are flocking to Singapore and even choosing to headquarter their businesses here. This in turn has given rise to several financial clusters springing up in Singapore, further propelling the need for efficient cloud services.

The heightened digital traffic that passes through Singapore's data centres allows for an interconnected ecosystem where enterprises and business partners can enjoy world-class network and cloud services.

In essence, the data centre sector has been part of a sea of change over the years, and 2016 looks set to be no different. Cloud service providers are set to further propel the growth of data centres as they continue to meet rising demand for managed services and hybrid cloud. Interconnectivity will take centre stage as more enterprises wake up to the benefits of adopting distributed, interconnection-centric infrastructure. Last but not least, Singapore is expected to continue its reign as the leading data centre hub in the region, thanks to its ability to offer enhanced interconnectivity and world-class services.


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