Singapore’s calibrated data centre growth is squeezing inventory resulting in overflow to neighbouring hubs. “While Singapore continues to be the epicentre of data centre growth in Southeast Asia, the more stringent conditions laid out for new builds have compelled investors to consider alternative sites or hubs in the region,” write RHB’s analysts in an April 13 sector update.
Asean's data centre market is on the cusp of “hyper-growth”, particularly in Singapore, Malaysia and Indonesia, say RHB Bank’s analysts Jeffrey Tan and Wan Muhammad Ammar Affan.
According to Frost and Sullivan, the three markets are expected to account for a combined 74% of the US$5.7 billion ($7.59 billion) Asean data centre market by 2025. “The positive outlook resonates well with our preference for fixed line plays,” say RHB’s analysts.
