Southeast Asia Data Center Market Outlook Report 2021-2026: Opportunities in Replacement of VRLA With Lithium-Ion Batteries In Data Centers & Rise In Adoption Of The All-Flash & Hybrid Array

DUBLIN, April 30, 2021 /PRNewswire/ — The «Data Center Market in Southeast Asia – Industry Outlook and Forecast 2021-2026» report…

DUBLIN, April 30, 2021 /PRNewswire/ — The «Data Center Market in Southeast Asia – Industry Outlook and Forecast 2021-2026″ report has been added to’s offering.

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The Southeast Asia data center market by investment is expected to grow at a CAGR of over 8% during the period 2021-2026.

The data center market in Southeast Asia is growing significantly, with multiple investments in Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand. Southeast Asia is among the fastest-growing digital markets worldwide. The internet usage and social media trends have increased the demand for faster internet networks and data centers to store data generated by them. The internet penetration is one of the strongest drivers for the data center market in Southeast Asia.

Moreover, social media usage among consumers and digital transformation by enterprises across industry verticals are other major factors promoting data center growth. The investments are growing significantly across Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand.

In 2020, Equinix, Digital Realty, NTT Global Data Centers, Space DC & GIC, ST Telemedia Global Data Centres, DTP, and DCI Indonesia were major investors in the Southeast Asia data center market.

Southeast Asia Data Center Market Segmentation

The Southeast Asia Data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling technique, cooling systems, general construction, tier standards, geography. The server market expects to witness significant growth in the next few years due to increased investments from large cloud service providers in the region.

The adoption of converged and hyper-converged infrastructure solutions is projected to increase the demand for servers with multicore processors. The migration of enterprises from on-premises to colocation facilities is likely to aid in the growth of high-performance computing (HPC) infrastructure in the Southeast Asia market.

The data center generator market is likely to grow due to the construction of large and mega facilities across the Southeast Asia region. The adoption of efficient power systems such as gas generators is growing. The implementation of the carbon tax in countries such as Singapore has driven operators to opt for efficient generators.

Although generators are the significant sources of carbon emission, their adoption among facilities continues to grow. However, operators are adopting efficient and cleaner power sources. Innovations in terms of fuel cells are expected to reduce the use of generators during the forecast period.

The Tier III data center market in Southeast Asia expects to reach USD 1.3 billion in 2026, growing at a CAGR of over 8%. There are over 89 tier III certified facilities in seven countries, including Singapore, Indonesia, Malaysia, and Thailand. Indonesia is the major location with around 40 certified facilities. Most new data centers in the region are designed according to Tier III standards with a minimum of N+1 redundancy. The Tier IV data center market is expected to reach over USD 620 million by 2026.

Singapore, Indonesia, Thailand, and Myanmar are witnessing Tier IV facilities’ construction, with Indonesia and Thailand accounting for seven Tier IV facilities. Facebook, Apple, Microsoft, and Google are the major contributors to the Tier IV market.


Singapore is the major data center hub in Southeast Asia, with the presence of several facilities operated by internet, cloud, telecommunication, and colocation service providers. The sub-sea fiber network connectivity routes over 90% of the world’s Internet traffic. Singapore has robust fiber connectivity to major APAC data center market and continues to expand its capacity. Many cloud service providers support customers in APAC via Singapore.

The Singapore government is likely to migrate government systems to the cloud. In December 2020, Equinix announced the development of its fifth data center facility in Singapore (SG5), which expects to be operational by Q2 2021. The impact of the COVID-19 pandemic on the Singapore data center market was low as these services were termed as essential.

Singapore is observing investment in renewable energy such as solar and wind sources which are led by hyperscale and colocation data center operators such as Microsoft, Facebook, and Equinix. Renewable energy installations will continue to grow among existing and upcoming facilities across the country.


HPE, Dell Technologies, Fujitsu, NetApp, Inspur, Oracle Huawei, NetApp, and Cisco Systems are among the major revenue contributors in the Southeast Asia data center market share. AWS, Microsoft, Alibaba, Tencent, IBM, Oracle, and Google are expanding their new cloud regions.

These providers are the major adopters of high-density, mission-critical servers, storage infrastructure, and network infrastructure. Schneider Electric, Eaton, Cummins, Vertiv, Rolls Royce Power Systems, HITEC Power Protection Caterpillar, and ABB are the major electrical infrastructure vendors with a strong presence in Southeast Asia.

The infrastructure market in Southeast Asia will witness immense competition with the growing construction of data centers in the next few years.

Market Dynamics

Opportunities & Trends

  • Rise In 5G Network Connectivity
  • Increasing Adoption of Renewable Energy
  • Advanced Technologies In Data Centers
  • Replacement of VRLA With Lithium-Ion Batteries In Data Centers
  • Rise In Adoption Of The All-Flash & Hybrid Array

Market Enablers

  • Impact Of COVID-19 On Data Centers
  • Increase In Data Center Investments
  • Increase In Cloud Adoption Driving The Data Center Market
  • Rise In Deployment Of Submarine Cables

Market Restraints

  • Security Challenges in Data Centers
  • Location Restraints for Data Center Construction
  • Scarcity of Skilled Workforce

Competitive Landscape

Key Data Center Critical (IT) Infrastructure Providers

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

Key Data Center Support Infrastructure Providers

  • ABB
  • Bosch Security Systems (Robert Bosch)
  • Caterpillar
  • Cummins
  • Cyber Power Systems
  • Delta Electronics
  • Eaton
  • Fuji Electric
  • HITEC Power Protection
  • Legrand
  • Mitsubishi Electric Corporation
  • Piller Power Systems
  • Rittal
  • Rolls-Royce Power Systems
  • Schneider Electric
  • Vertiv Group

Key Data Center Contractors

  • Arup Group
  • AWP Architects
  • Aurecon Group
  • CSF Group
  • Cundall
  • DSCO Group
  • Fortis Construction
  • Faithful+Gould
  • Kienta Engineering Construction
  • LSK Engineering
  • M+W Group (Exyte)
  • Nakano Corporation
  • PM Group
  • Sato Kogyo

Key Data Center Investors

  • AIMS Data Centre
  • AirTrunk Operating
  • Bridge Data Centres
  • BDx (Big Data Exchange)
  • Digital Realty
  • DCI Indonesia
  • DTP
  • Equinix
  • Iron Mountain
  • Keppel Data Centres
  • Kepstar Data Centre Management
  • NTT Global Data Centers
  • Regal Orion
  • Space DC
  • ST Telemedia Global Data Centres
  • VADS Berhad

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