"The primary reason the small island nation has such an active data centre market is that it has become an Internet gateway between China and the rest of the world," explains Jabez Tan, senior analyst at Structure Research. Not only that, Chinese companies are increasingly using Singapore to serve customers in the rest of the world.
The Singapore government's commitment towards molding the country into a leading data centre hub bodes well for companies intending to expand into Singapore. Through the Green Data Centre Technology Roadmap, a framework to improve data centre sustainability and energy efficiency, companies can be assured that the government is conscious of rising energy costs, which are directly related to their total cost of ownership.In addition, the development of a data centre park, as part of the government's plan to grow Singapore into a dynamic global infocomms hub, ensures that data centre operators remain competitive and innovative.
Playing devil's advocate -- does going global mean a layer of added management complexity? That's where data centre infrastructure management (DCIM) comes in. Leading companies with global data centre footprints rely on DCIM software for a consolidated view of and ability to manage activity in all of their data centres.
So, in the end, does it matter?
Geographical proximity is no longer a 'good to have,' and companies know it. Campos Research found that 97% of companies are seeking to locate their new data centres less than 50 kilometers from their headquarters or major operations centre.
Data sovereignty and latency make it important for companies to have a data centre footprint in the regions they're expanding to, including Singapore for Asia Pacific and DCIM provides a consolidated view of a distributed data centre footprint and a solution to manage the complexity.
 451 Research
 In 2013, China was the world's second largest economy. India was the tenth and South Korea was the fifteenth. All three countries received data centre market maturity ratings of "emerging" by 451 Research. See Multi-tenant Data Centre Global Providers - 2014.
 Campos Research
Sign up for MIS Asia eNewsletters.