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Singapore is prime data centre location in Asia Pacific

Anuradha Shukla | March 7, 2014
Suitable for setting up new and outsourced data centres.

These positions are based on the evaluation of 13 nations in Asia/Pacific (excluding Japan) or APeJ.

Energy costs and bandwidth availability are the two factors that decided the ranking of these three countries. 

"Choosing a strategically correct location has become increasingly important for organizations to serve their customers across countries. Hence, the scrutinizing process has to be done very thoroughly and carefully," said Simon Piff, Associate vice president of Infrastructure Research, IDC Asia Pacific.

Interest in Asian market

There is an ongoing interest in locating datacentres into the Asian market. Last month DigitalOcean, a fast-growing SSD-based cloud hosting service, launched its Singapore data centre location.

The company shifted to Singapore as it experienced huge demand from potential users in the Asia-Pacific region who want to use the service, but are wary of the increased latency resulting from hosting their services in DigitalOcean's Europe or the U.S. data centres.

Also, DigitalOcean's existing customers are keen on getting their services closer to their own customers in Asia. Several such examples exist that has lead to the increased popularity of APeJ as a desired location to set up data centres. 

IDC conducted a political, economic, social, technological, legal, and environmental (PESTLE) analysis for all these 13 nations.

Findings of the report are based on a total of 18 factors that contribute to operational costs for running the datacentre business.

Piff finds most countries in Asia as lucrative markets to set up and grow businesses. However, few nations do not come up to the expectations of the investors due to unsuitable political and technological environments.

 

 

 

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