Asia Pacific data center market growth rate to surpass 16 percent in 2011

Asia Pacific data center market growth rate to surpass 16 percent in 2011

With Japan at the forefront, Frost and Sullivan says demand in the region outpaces supply

(2/12/2010)

Echoing the words of analysts in the US about the American data center market, a research firm Frost and Sullivan analyst says that demand for data center space in Asia-Pacific significantly outpaces supply in the region and expects growth in the provider market to continue at high rates. “Data centre hosting services are a huge, growing business - one that has remained largely insulated from the recession,” Frost and Sullivan’s Chengyu Wu said in a statement, highlighting her new study of the region. “As much as two-fifths of a company's total energy consumption is spent on powering data centres, making the cost of maintaining captive data centers highly prohibitive. “Real estate, of course, is the other significant cost. In fact, over 80 percent of the major data centres in Asia-Pacific are running at close to 90 percent capacity and space is at a premium.” The report cover 14 countries in Asia-Pacific, including Japan. In 2009, the data center services market’s size in the region was about $8 billion, growing at a rate of about 12.8 percent year-over-year. Wu expects the market to grow by 14.7 percent in 2010 and by 16.4 percent in 2011, by which point its size will reach $10.68 million. Japan accounted for the largest portion of the region’s total market revenues in 2009, generating $5.7 billion. Other major Asia-Pacific data center “hubs” are Australia, Singapore, Hong Kong and, to a lesser degree, China, India and Malaysia. Across the region, most demand is driven by “government initiatives towards e-governance and e-readiness.” Remaining 45 percent of the market is driven by Internet media, telecommunications and IT companies, whose sectors continue growing at high rates. The full report can be obtained through the Frost and Sullivan Web site. - wong chee tat :)