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APAC colo boom eases UK operator expansion

PM’s Asian tour due next week occurs at a time when the region’s data centre market is booming.

By Joao Lima

As Downing Street prepares to fly a UK tech delegation to Asia in August, the region’s collocation market is going through expansion and consolidation to accommodate Western businesses.

Jihann Pedersen, Marketing Director Europe at Digital Realty, told CBR: "The current data centre boom in APAC reflects a growing confidence in the region, thus also reflecting a maturing data centre collocation market.

"Although each country has different characteristics, strong fundamentals in the region are driven by both consumer demand supported by a large demographic base, high mobile penetration, the modernisation of enterprises’ ICT infrastructure and adoption of cloud services (public and private cloud)."

NTT Communications (NTT Com) today said it will expand its Asian footprint with the acquisition of Indonesian colo provider Cyber CSF. The company will take over Cyber CSF’s 7,700 square meters Jakarta facility with 24 MVA of power and 2,800 racks.

NTT Com said that the Indonesian ICT market is expected to average about 10% annual growth through 2017, exceeding growth in most other Southeast Asian countries. The firm expects the acquisition to strengthen its Nexcenter data centre capabilities in the Asia-Pacific region.

Pedersen added: "A recent 451 research report labelled APAC’s top 4 Data Centre markets (Japan, Singapore, HK, Australia) are nearly equivalent to the EU’s top 4 Data Centre markets (UK, Germany, France, Netherlands).

"As far as benefits to UK colo companies, they will be able to expand and grow quickly within the region."

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Colo Telx has also said to be involved in the development of a submarine network cable that will seamlessly connect the west coast of the U.S. to Asia.

The FASTER transpacific cable system will land in Oregon from Japan, and will be accessible via a distribution Point of Presence (PoP) in Telx’s PRT1 data centre in Portland.

In Singapore, the data centre market is expected to generate revenues of $1.2 billion by 2016, up from $963 million in 2014, according to Structure Research.

The city-state’s government has laid out plans to create a Smart Nation, where IoT will be producing vast amounts of data that need to be stored in data centres.

PM David Cameron is next month taking a UK tech delegation to Asia as part of Downing Street’s plans to build up Britain’s fin-tech sector.

Mr Cameron said: "I’m delighted to be taking British businesses to this vast and dynamic market, securing deals worth over £750m and creating opportunities for hard working people back at home."

The contingent will see 31 businesses travelling with the PM to Singapore, Malaysia, Indonesia and other countries. Darktrace’s CEO, Nicole Eagan will also be in the delegation.

Steve Leonard, Executive Deputy Chairman at the Infocomm Development Authority (IDA) in Singapore, told CBR: "This is part of us continuing to foster some trade. If we are working on similar challenges, it is better to work on them together than individually."

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