Tag: datacenter

  • Google Boosts Global AI Innovation with New Major Hardware Engineering Center in Taiwan

    Google Boosts Global AI Innovation with New Major Hardware Engineering Center in Taiwan

    Google has inaugurated a new engineering center in Taiwan dedicated to artificial intelligence (AI) infrastructure hardware, marking its largest establishment of this kind outside the United States. This move underscores Taiwan’s pivotal role in the global technology landscape.

    Taiwan’s President, Lai Ching-te, lauded the launch event in Taipei, noting that Google’s investment underscores the company’s faith in Taiwan’s tech prowess. According to President Lai, Taiwan is not just a fundamental component of the global technology supply chain, but also a crucial hub for designing secure and trustworthy AI.

    Taiwan continues to be a critical player in advancing global AI owing to its solid semiconductor ecosystem, spearheaded by Taiwan Semiconductor Manufacturing Co. (TSMC). The high-tech chips developed by TSMC power systems from firms such as NVIDIA, which are at the forefront of global AI innovation.

    Raymond Greene, the acting U.S. Ambassador in Taipei, emphasized the importance of this expansion. He noted that this innovative foundation sets the stage for a promising new era, dubbing it a new golden age in the economic relationship between the U.S. and Taiwan.

    Google revealed that the new facility will concentrate on sophisticated AI hardware engineering. This will include the integration of AI chips such as Google’s Tensor Processing Units (TPUs) into motherboards and their attachment to servers.

    Additionally, Google confirmed that its Taiwan infrastructure engineering team, established in 2020, has tripled in size, and that the new center will be staffed by hundreds of employees who will support Google’s global data center operations.

    Google’s presence in Taiwan is not new. The company already runs multiple hardware development sites on the island and has been operating a data center in Changhua County since 2013. Google has also invested in several subsea cable projects connecting Taiwan to global networks.

    Aamer Mahmood, Google’s Vice President of Engineering, stated that the technology developed and tested in Taipei is deployed in Google data centers worldwide, which powers Google devices relied upon by billions globally. He added that this is more than an office investment; it signifies an investment in an ecosystem, further solidifying Taiwan’s position as an essential center for global AI innovation.

    Questions & Answers

    What is the focus of Google’s new engineering center in Taiwan?
    The new engineering center will concentrate on advanced AI hardware engineering, including the integration of AI chips into motherboards and servers.

    How does Taiwan contribute to global AI progress?
    Taiwan has a robust semiconductor ecosystem led by Taiwan Semiconductor Manufacturing Co. (TSMC), making it a critical player in advancing global AI. The chips developed by TSMC power systems for AI innovation worldwide.

    What does the new facility mean for Google’s presence in Taiwan?
    The new facility marks an expansion of Google’s presence in Taiwan. In addition to the new center, Google already operates multiple hardware development sites and a data center in Taiwan, and has invested in numerous subsea cable projects.

  • Thailand Ignites Digital Economy: Unveils $3.1B Investment in Data Center Boom & Cloud Revolution

    Thailand Ignites Digital Economy: Unveils $3.1B Investment in Data Center Boom & Cloud Revolution

    Thailand is propelling its efforts to establish itself as a premier hub for digital infrastructure in Southeast Asia. This move follows the Board of Investment (BOI) granting approval for four new data center projects valued at THB 100 billion (USD 3.1 billion). The country is gearing up to more fiercely compete with Singapore and Malaysia, as the demand for artificial intelligence (AI) and cloud services is growing across the region.

    Details on New Projects

    The BOI has confirmed that two of the approved projects are hyperscale facilities designed to support AI workloads. NextGen Data Center and Cloud Services, a subsidiary of DAMAC Digital based in Dubai, plans to construct an 84-MW hyperscale data center in the Navanakorn Industrial Estate in Pathum Thani Province. This project is expected to require an investment of THB 26.7 billion (USD 826.42 million).

    Meanwhile, Zenith Data Center and Cloud Services, a local firm, will dedicate THB 54.9 billion (USD 1.7 billion) towards developing a 200-MW hyperscale facility in the same location.

    Telehouse (Thailand), which is a division of Japan’s KDDI Corporation, has set plans in motion to build a 12-MW data center adjacent to its existing facility in the Huai Khwang District of Bangkok. This expansion will be funded by an investment of THB 7.55 billion (USD 233.64 million).

    Lastly, Vistas Technology, a subsidiary of ZDATA Technologies based in China, will invest THB 9.9 billion (USD 306.39 million) to construct an 80-MW facility in the Amata City Chonburi Industrial Estate. This will mark the company’s second project to receive approval from the BOI.

    Thailand’s Digital Infrastructure Strategy

    Narit Therdsteerasukdi, the Chairman of the BOI, indicated that the approval of these projects underscores Thailand’s strategy to draw hyperscale operators and augment its world-class digital infrastructure. He stated, “The kingdom is actively positioning itself as a key Southeast Asian hub for hyperscale data centers. These approvals demonstrate our commitment to facilitating world-class digital infrastructure investment.”

    In addition to these approvals, the BOI has also issued six licenses to recommence data center projects that had previously stalled, which are collectively valued at USD 9.2 billion. The agency’s goal is to resolve delays associated with power availability, access to industrial land, and the processing of visas or work permits. Therdsteerasukdi affirmed that this action would bolster investor confidence and promote job creation and economic growth.

    Context and Outlook

    Thailand has been observing a surge in data center investment since 2024, with companies such as AWS, Google, Microsoft, and ByteDance announcing substantial commitments. During the first half of 2025 alone, the sector attracted a total of THB 521.2 billion (USD 16.13 billion) in approved investments spanning 28 different projects.

    Officials project that this latest development will significantly increase Thailand’s data center capacity. It is expected to sustain the rising domestic and regional demand for AI and cloud services, and strengthen the nation’s stand in Southeast Asia’s rapidly expanding digital economy.

    Questions & Answers

    What is the total value of the four new data center projects in Thailand?
    The total value of the four new data center projects in Thailand is THB 100 billion (USD 3.1 billion).

    Who are some of the major companies investing in data centers in Thailand?
    Some of the major companies investing in data centers in Thailand include NextGen Data Center and Cloud Services, Zenith Data Center and Cloud Services, Telehouse (Thailand), and Vistas Technology.

    What impact will these projects have on Thailand’s position in the digital economy of Southeast Asia?
    These projects will bolster Thailand’s position in the digital economy of Southeast Asia by increasing the country’s data center capacity and meeting the growing regional demand for cloud and AI services.

  • Philippines’ Top Data Centers Unite to Boost Nation’s Rise as Southeast Asia’s Digital Powerhouse

    Philippines’ Top Data Centers Unite to Boost Nation’s Rise as Southeast Asia’s Digital Powerhouse

    The Philippines’ prominent data center operators have officially collaborated to establish the Data Center Operators of the Philippines (DCPH). This unified alliance aims to fortify the country’s standing as the upcoming digital hub of Southeast Asia.

    Forming a New Alliance

    This groundbreaking collaboration was solidified through a Memorandum of Understanding (MoU) which was signed by representatives from leading companies such as VITRO Inc., ST Telemedia Global Data Centres (Philippines), YCO Cloud, Digital Edge Philippines, Digital Halo, and A-FLOW. This last company is a joint venture between FLOW Digital Infrastructure and AyalaLand Logistics Holdings Corp. Collectively, these companies have a shared goal of enhancing the Philippines’ regional competitiveness in the global digital economy. This is achievable through the strengthening of data center infrastructure and industry collaboration.

    DCPH’s Role and Purpose

    The DCPH members, who represent an impressive combined 473 MW of IT power capacity, will act as a united voice for the Philippine data center industry. The alliance aims to encourage collaboration among key sectors to improve infrastructure and innovation. This includes collaborating with the power industry to ensure competitive rates and renewable energy access. Additionally, they aim to partner with telecommunications providers to enhance connectivity. They will also work with the Department of Information and Communications Technology (DICT) to advocate supportive policies, such as data localization. Another goal is to develop local talent and maintain industry growth in the face of increasing demand for hyperscale, AI, and other next-generation technologies.

    The Importance of Data Localization

    The group has highlighted that data localization is crucial for data processed and stored by the public sector. Keeping government data within the nation helps safeguard national security and protect citizen information. Countries such as Indonesia, Thailand, and Malaysia have already introduced robust data localization policies. These countries recognize citizen data as a strategic national asset that supports data sovereignty and economic growth. By implementing similar strategies, the Philippines can enhance infrastructure resilience, attract more cloud and AI investments, and position itself as a top-rated digital hub in the region. This would facilitate the smooth flow of data across borders to support the digital economy.

    Questions & Answers

    What is the goal of the Data Center Operators of the Philippines (DCPH)?
    The DCPH aims to bolster the Philippines’ regional competitiveness in the global digital economy by strengthening data center infrastructure and encouraging industry collaboration.

    What is the significance of data localization?
    Data localization is vital for ensuring the security of data processed and stored by the public sector. It safeguards national security and protects citizen information.

    How can the Philippines position itself as a leading digital hub in the region?
    By implementing robust data localization policies and developing local talent, the Philippines can attract greater investments in cloud and AI technologies. This would enhance infrastructure resilience and support the seamless flow of data across borders.

  • Telkom and Singtel Celebrate Key Progress in Batam’s Rising Data Center Scene

    Telkom and Singtel Celebrate Key Progress in Batam’s Rising Data Center Scene

    NeutraDC, a division of Telkom Indonesia, and Nxera, Singtel’s regional data center branch, have completed the structural framework of a new data center located in Batam, Indonesia. The construction phase of the project, known as BTM-1, began in June of the previous year, with the facility expected to be operational by the first half of the upcoming year.

    A topping-out ceremony was recently held, with attendance from representatives of the Indonesian sovereign wealth fund, Danantara Indonesia, and Medco Power Indonesia, a renewable energy producer.

    Location and Capacity

    BTM-1 is situated within the Kabil Industrial Estate, a technological park on Batam Island, which is located close to Singapore. The data center is projected to offer over 50 MW of capacity.

    Telkom Indonesia, one of the largest telecommunications companies in the country, operates NeutraDC as its data center division. Meanwhile, Singtel, a leading communication group, operates Nxera as its regional data center branch.

    Other Developments

    Within the Kabil Industrial Estate, there is another facility managed by NeutraDC. In a recent development, an agreement was reached between the company and Indonesian utility PT PLN Batam. The agreement provides for the supply of 90 MVA of medium-voltage electricity to a 60 MW data center from 2025 through 2028.

    While the majority of Indonesia’s data centers are located around Jakarta on the island of Java, Batam’s close proximity to Singapore has attracted data center operators to the area, most notably at Nongsa Digital Park. Key players, including Telkom Indonesia & Etisalat, GDS, Gaw Capital Partners, Oracle, and BW Digital have established operations in this location.

    Questions & Answers

    Who are the operators of the new data center in Batam, Indonesia?
    The data center is operated by NeutraDC, the data center division of Telkom Indonesia, and Nxera, the regional data center branch of Singtel.

    What is the expected capacity of this new data center?
    This new data center is projected to offer over 50 MW of capacity.

    When is the data center expected to be operational?
    The data center is expected to be operational by the first half of the next year.

  • Global Amazon Web Services Outage Disrupts Thousands Of Websites, Reveals Vulnerability In Online Infrastructure

    Global Amazon Web Services Outage Disrupts Thousands Of Websites, Reveals Vulnerability In Online Infrastructure

    Amazon’s cloud computing division AWS resumed regular operations on Monday after an extensive internet outage that disrupted thousands of websites globally, including popular apps such as Snapchat and Reddit. However, Amazon acknowledged that certain AWS services were dealing with a backlog of messages that needed several hours to process.

    AWS provides application hosting and processing power for corporations across the globe. This disruption caused employees from London to Tokyo to be cut off from their work and hindered others from carrying out routine tasks, such as processing digital payments or modifying airline tickets. Users reported persistent difficulties using services like the digital wallet app Venmo and the video conferencing platform Zoom on Monday afternoon.

    This incident represents the most significant internet disruption since last year’s CrowdStrike failure, which crippled technology systems in hospitals, banks, and airports, emphasizing the susceptibility of globally interconnected technologies. Intriguingly, this is at least the third time in five years that AWS’s northern Virginia cluster, known as US-EAST-1, has been implicated in a major internet meltdown.

    Amazon did not provide a detailed explanation as to why this specific data center is consistently affected. The problem originated from the Domain Name System (DNS), which prevents applications from locating the correct address for AWS’s DynamoDB API, a cloud database utilized for storing user information and other vital data.

    Root Cause: Network Health Monitor

    AWS attributed the outage to a subsystem that oversees the health of its network load balancers, which distribute traffic across various servers. According to AWS, the issue originated within the “EC2 internal network,” also known as Amazon’s “Elastic Compute Cloud” service, which offers on-demand cloud capacity within AWS.

    All AWS services were back to normal operations around 3 pm PT (2200 GMT) on Monday, according to Amazon. However, services such as AWS Config, Redshift, and Connect continue to handle a backlog of messages that will take several more hours to process.

    Ken Birman, a computer science professor at Cornell University, emphasized the need for software developers to improve fault tolerance. AWS provides tools for developers to safeguard themselves against problems at any of its data centers, and developers can also establish backups with other cloud providers.

    Previous Outages at the Same AWS Location

    AWS is the world’s largest cloud provider, offering computing power, data storage, and other digital services to companies, governments, and individuals. It is followed by Microsoft’s Azure and Alphabet’s Google Cloud. Any disruption to its servers can lead to outages across websites and platforms—from food delivery apps to gaming platforms and airline systems—that rely on its cloud structure.

    The outage on Monday originated from AWS’s US-EAST-1 location, its oldest and largest for web services, which had experienced outages in 2021 and 2020.

    According to the AWS website, the US-EAST-1 site is often the default region for many AWS services.

    “Fragile Infrastructures”

    This issue underlines how interconnected everyday digital services have become and how dependent they are on a small number of global cloud providers. One failure can considerably disrupt business operations and daily life, experts say.

    In the United Kingdom, Lloyd Bank, Bank of Scotland, and telecom service providers Vodafone and BT were all affected, as was the UK tax, payments, and customs authority HMRC’s website.

    Ookla, owner of Downdetector, reported that over 4 million users experienced issues due to the incident.

    “h2>Impact on Apps

    At least a thousand companies were affected by the outage, according to Ookla. Apps such as Reddit, Roblox, Snapchat, and Duolingo were all disrupted.

    Artificial intelligence startup Perplexity, cryptocurrency exchange Coinbase, and trading app Robinhood all experienced platform disruptions and attributed them to AWS.

    Amazon’s own services, including its shopping website, Prime Video, and Alexa, were also affected. Gaming platforms such as Fortnite, owned by Epic Games, Clash Royale, and Clash of Clans were among those affected. Uber competitor Lyft was also disrupted in the United States.

    Questions & Answers

    What was the cause of the AWS outage?
    The problem originated from the Domain Name System (DNS), which prevents applications from finding the correct address for AWS’s DynamoDB API, a cloud database utilized for storing user information and other vital data.

    How did the outage affect global businesses?
    The outage disrupted services for companies worldwide, causing employees to be cut off from their work and hindering others from carrying out routine tasks. This incident impacted a broad range of services—from food delivery apps to gaming platforms and airline systems—that rely on AWS’s cloud infrastructure.

    Which AWS location experienced the outage?
    The outage originated from AWS’s US-EAST-1 location, its oldest and largest for web services.

  • NTT and Broadcom Team Up to Revolutionize Data Centers with Energy-Efficient Optical Chips

    NTT and Broadcom Team Up to Revolutionize Data Centers with Energy-Efficient Optical Chips

    In a significant move toward sustainable technology, Japanese telecommunications giant NTT has teamed up with U.S. chipmaker Broadcom and other key partners to pioneer optical-based semiconductor packages. This innovative collaboration aims to cut energy consumption in data centers, a must in an era where soaring energy demands are increasingly linked to the rise of generative AI workloads.

    Driving Significant Energy Reductions

    NTT revealed that these groundbreaking devices, set to hit the market next year, could potentially reduce data center power usage by as much as 50%. This prospect is particularly crucial as organizations worldwide grapple with the intense energy requirements posed by AI advancements.

    Harnessing the Power of Light

    The partnership advances NTT’s Innovative Optical and Wireless Network (IOWN) initiative, which seeks to revolutionize information infrastructure through light-based communication technologies. By replacing traditional electrical wiring with optical signals, these new devices promise considerable enhancements in both processing speed and energy efficiency.

    “What counts most is to help society cut the use of electricity,” said NTT President and CEO, Shimada Akira, during a recent press conference announcing the collaboration.

    Forging Ahead in the AI Landscape

    By integrating optical interconnects into semiconductor packages, NTT and its allies aim to deliver processors that enable quicker and more efficient AI computations. The firm plans to supply these advanced products to U.S. companies developing generative AI systems, highlighting NTT’s expanding role in shaping the AI-driven digital infrastructure landscape. This is not just a step forward; it’s a leap into the future for tech processing efficiency.

    Commitment to Sustainable Solutions

    This initiative places NTT at the forefront of a vital global effort to achieve high-performance computing while adhering to environmental sustainability. As data volumes surge, the pressure to balance cutting-edge AI innovation with ecological responsibility has never been greater, and NTT’s efforts are a noteworthy contribution to this ongoing challenge.

    Questions & Answers

    How will the new optical-based semiconductor packages affect data center operations?
    The new packages are expected to reduce energy consumption in data centers by up to 50%, significantly improving efficiency, especially with the increasing demands of generative AI workloads.

    What is the IOWN initiative, and how does it relate to this partnership?
    The IOWN initiative, spearheaded by NTT, focuses on creating a next-generation information infrastructure through light-based communication technologies, aiming to replace traditional electrical systems to enhance processing speed and energy efficiency.

    Who will benefit from the new technology being developed?
    U.S. firms working on generative AI systems will be the primary beneficiaries, as NTT plans to supply these advanced optical devices to bolster their efforts in AI and digital infrastructure.

  • Mumbai Emerges as India’s Thriving Data Centre Hub: A New Era in Digital Infrastructure

    Mumbai Emerges as India’s Thriving Data Centre Hub: A New Era in Digital Infrastructure

    Mumbai is positioning itself as the data centre powerhouse of India, commanding an impressive 40% of the country’s overall capacity and 44% of its active IT infrastructure, according to a recent report by Knight Frank. The city experienced a notable surge in capacity during the first half of the year, increasing by 14.3% and surpassing the crucial 4 gigawatt (GW) mark. Currently, it boasts 591 megawatts (MW) of operational capacity, with an additional 185 MW under construction and a staggering 3.2 GW in the pipeline.

    This remarkable growth is largely fueled by the rapid adoption of cloud technology, stringent data localization mandates, and the burgeoning local sectors of fintech and banking, financial services, and insurance. In fact, Mumbai’s tight vacancy rate of 5.4% starkly contrasts with India’s overall colocation vacancy rate of 12.3%. Impressively, two-thirds of the city’s current construction projects are already pre-leased, indicating a robust demand in the market.

    However, amidst this frenzy of development, Mumbai faces a critical shortfall in capacity for hyperscale deployments. Currently, only three sites are operational that can support such extensive needs, with just one facility offering more than 10 MW of available capacity. This situation creates a short-term shortage for large-scale requirements, leaving enterprises in a scramble for solutions.

    Knight Frank notes that this fragmented supply landscape is opening doors for well-capitalized global players and joint ventures to step in and provide high-capacity facilities, challenging local dominance in the sector. In an industry where the demand for data infrastructure seems to accelerate daily, the race is on for companies to capitalize on Mumbai’s emerging status as a data-driven hub.

    Questions & Answers

    How much of India’s data centre capacity is located in Mumbai?
    Mumbai accounts for 40% of India’s total data centre capacity and 44% of the country’s active IT capacity.

    What factors are driving the growth of data centres in Mumbai?
    The growth is primarily driven by rapid cloud adoption, increasing data localization requirements, and the expansion of local fintech and banking sectors.

    Is there an immediate supply issue for hyperscale data centre deployments in Mumbai?
    Yes, there is a short-term supply tightness, with only three live sites currently equipped to handle hyperscale deployments and just one site offering over 10 MW of capacity.

  • NTT DATA Partners with AWS to Launch Innovative AI-Powered Contact Center Solutions

    NTT DATA Partners with AWS to Launch Innovative AI-Powered Contact Center Solutions

    In a significant move aimed at transforming customer service, NTT DATA has inked a strategic collaboration agreement with Amazon Web Services (AWS) to deploy AI-driven contact center solutions via Amazon Connect, AWS’s innovative cloud-based platform.

    Launching a New Era of Customer Experience

    As part of this partnership, NTT DATA will unveil the Managed Customer Experience (MCX) for Connect, a dynamic modular platform set to fast-track customer experience (CX) enhancements across various industries. This platform blends NTT DATA’s extensive experience in contact centers and managed services with the agile capabilities of Amazon Connect, enabling quicker deployment, tailored interactions, and insightful data-driven engagement.

    Enhancing Engagement Across Channels

    MCX for Connect aims to offer a comprehensive suite of solutions that includes voice and digital interaction channels, in-depth reporting and analytics, AI-enabled services, and seamless integrations with key business applications like CRM and IT service management tools. With the integration of conversational AI agents, real-time sentiment analysis, intelligent call routing, and predictive service capabilities, this platform is designed to elevate critical metrics such as average handle time, first-call resolution rate, and overall customer satisfaction. After all, who wouldn’t want to have a chatbot that can not only chat but charm?

    A Tailored Approach for Diverse Industries

    This collaboration draws heavily on NTT DATA’s proprietary customer experience technologies, including advanced speech analytics and the Smart AI Agent Ecosystem. The upcoming solutions will particularly focus on sectors with complex customer interactions, including financial services, healthcare, telecommunications, and retail.

    Sashen Naidu, Global VP of Customer Experience at NTT DATA, emphasized the strategic advantage this collaboration brings, stating, “By combining NTT DATA’s contact center heritage, digital transformation expertise, and client experience innovation with Amazon Connect’s powerful cloud-native capabilities, we are helping customers reimagine how they engage with their customers and stay ahead in an increasingly competitive landscape.”

    Looking Ahead with Innovative Solutions

    NTT DATA will be responsible for the global delivery, implementation, hosting, security, and managed services of these solutions, which are set to roll out to clients in the coming months. This partnership could redefine how businesses interact with consumers, ushering in a new era of customer service powered by technology.

    Questions & Answers

    What is the main goal of NTT DATA’s collaboration with AWS?
    The primary aim is to deliver advanced AI-powered contact center solutions using Amazon Connect, enhancing customer experience across various industries.

    What features does the Managed Customer Experience for Connect offer?
    The platform offers a range of solutions including voice and digital channels, AI-enabled services, real-time sentiment analysis, and integrations with business applications to improve customer service metrics.

    Which industries will benefit most from this new platform?
    The solutions are particularly tailored for sectors such as financial services, healthcare, telecommunications, and retail, addressing their unique customer interaction challenges.

  • Sydney’s Data Centre Vacancy Rate Plummets to 5.2% in First Half of 2025!

    Sydney’s Data Centre Vacancy Rate Plummets to 5.2% in First Half of 2025!

    In a remarkable shift, Sydney’s data centre market is on the rise, evidenced by a drop in the vacancy rate from 9% to a striking 5.2%. This shift emphasizes the city’s growing stature as a regional hub for data centres, as highlighted in a recent report by Cushman and Wakefield. Even without significant increases in operational capacity during the first half of 2025, robust fundamentals are sustaining the market’s upward trajectory.

    Demand Surge Driven by Cloud Services and AI

    The report notes that sustained demand for cloud services and artificial intelligence (AI) workloads has been a key driver of this decline in vacancy rates. The development pipeline remains vibrant, with new players entering the data centre landscape. Notably, ISPT, a major real estate investment firm, has submitted plans for a 170MW data centre in North Ryde, reinforcing Sydney’s appeal as a strategic centre for data management.

    Major Investments Are Reshaping the Landscape

    Adding to the momentum, Macquarie Data Centres has initiated a deal to acquire a land parcel in Sydney valued at US$157 million, slated for a potential 150MW data centre campus. Meanwhile, Stack Infrastructure, with an eye on the future, is planning a substantial 450MW campus at Erskine Park, backed by an investment of US$405.3 million—one of the largest single-site developments in Sydney’s history. This isn’t just a case of numbers; it’s a multifaceted strategy where the data centre sector is becoming as enticing as a new flavor of bubble tea in downtown Sydney.

    Acquisitions Fuel Growth in Connectivity

    In a notable move, Partners Group has expanded its footprint by not only acquiring Digital Halo in Singapore but also GreenSquareDC in Australia for a hefty US$759 million. This investment signifies a commitment to establishing GreenSquareDC as a forward-thinking data centre platform, tailored to meet the burgeoning demands of hyperscalers and AI.

    Moreover, in the connectivity sector, Vocus Group is set to acquire TPG Telecom’s fibre infrastructure assets, alongside its Enterprise, Government, and Wholesale (EG&W) business. The Australian government has approved this US$3.42 billion acquisition, expected to finalize by year-end, marking a significant consolidation in the telecom landscape.

    Accelerating Cloud Adoption

    Cloud adoption continues to accelerate across industries in Australia. The Commonwealth Bank of Australia recently completed its migration to Amazon Web Services (AWS), heralding a new era of digital capabilities. Similarly, the Department of Defence has signed a five-year, US$324.71 million contract with Microsoft for cloud services, further solidifying partnerships within the tech ecosystem. CareSuper, a leading superannuation fund, is also transitioning its applications and data to Microsoft Azure.

    In conclusion, Sydney’s data centre market not only remains resilient but is also dynamically evolving, driven by strong demand, strategic investments, and an ongoing digital transformation across various sectors.

    Questions & Answers

    What has caused the decline in Sydney’s data centre vacancy rate?
    The sharp decline from 9% to 5.2% in vacancy rates is primarily driven by sustained demand for cloud services and AI workloads, reflecting a robust interest in data management solutions.

    What major developments are expected in Sydney’s data centre sector?
    Key developments include ISPT’s proposed 170MW data centre in North Ryde and Stack Infrastructure’s ambitious 450MW campus at Erskine Park, signaling significant investments in the region.

    How is cloud adoption changing in the Australian market?
    Cloud adoption is accelerating, as seen with the Commonwealth Bank’s migration to AWS and the Department of Defence’s substantial agreement with Microsoft, underscoring a broader trend of digital transformation in various sectors.

  • Malaysian Telcos Unite to Launch Federated API, Boosting Digital Security for Consumers

    Malaysian Telcos Unite to Launch Federated API, Boosting Digital Security for Consumers

    In a significant move to enhance online security and combat the rampant issue of digital identity theft, Malaysia’s telecommunication giants have united under the GSMA Open Gateway initiative. During the recent Digital Nation Summit in Kuala Lumpur, key players including CelcomDigi, Maxis, U Mobile, Telekom Malaysia, and YTL Communications unveiled their federated network service, setting a new standard for security in the digital landscape.

    A Smart Solution for Verification

    This collaborative initiative aims to empower enterprise developers, such as banks and online retailers, by providing them with federated access to the Number Verification API. This API, one of the GSMA Open Gateway offerings and built upon the international Camara standard, revolutionizes identity verification processes. It enables businesses to authenticate mobile users by matching their phone numbers with real-time network data, presenting a far more secure alternative to traditional SMS one-time passwords. It’s like swapping your old lock for a biometric safe—only better.

    Voices of Leadership

    CelcomDigi’s Acting CEO, Albern Murty, champions this collaboration as a pivotal leap for Malaysia’s digital ecosystem. “This collaboration is a technological milestone that represents how Malaysia’s operators can collectively lead in shaping a trusted and inclusive digital future,” he stated. Murty emphasized the importance of creating a seamless environment that not only protects consumers from scams but also fosters innovation throughout the ASEAN region.

    Maxis CEO Goh Seow Eng echoed this sentiment, highlighting their experience with the Number Verification API in combatting digital fraud, through initiatives like their Mobile Identity solution for Malaysian enterprises. “We are committed to this industry-wide collaboration to accelerate API-driven innovation, creating a more seamless mobile experience and building a more secure digital Malaysia for everyone,” he affirmed.

    U Mobile’s Chief Information Officer, Neil Tomkinson, pointed out that the multi-party engagement in this initiative is key to enhancing online safety: “Information sharing, along with strategic policy enforcement, will definitely enhance customer experience and safety online,” he asserted.

    Developers Rejoice: A Unified Approach

    The federated model introduced by this initiative allows developers to create digital services that operate across all participating telecom operators while each retains control over its own data and revenue streams. This is a welcome change from the current need for developers to integrate independently with each operator’s APIs, simplifying the development process significantly.

    Endorsing a Secure Future

    Amar Huzaimi Md Deris, TM Group CEO, remarked on the initiative as a vital step towards safeguarding businesses and consumers from digital fraud while propelling growth in the digital economy. He described the collaboration as essential for providing trusted and sovereign digital solutions.

    YTL Communications CEO Wing K. Lee added that their commitment to building a trusted digital economy will be bolstered through the GSMA Open Gateway programme. He highlighted their investment in AI Cloud infrastructure and innovative technologies as crucial for fostering an inclusive and secure digital ecosystem.

    Regional Impact and Challenges Ahead

    Julian Gorman, GSMA Head for Asia-Pacific, praised the Malaysian initiative, noting that standardized access to mobile network capabilities is vital for combating online crime. His remarks come on the heels of a similar collaboration in Indonesia, where key operators have also adopted a unified API protocol.

    This announcement coincided with new GSMA research outlining a rising consumer apprehension towards scams and fraud in Southeast Asia. Gorman cautioned that unless action is taken to address these issues, trust in digital services could be severely compromised. He called for a unified front consisting of governments, banks, and technology stakeholders to align on security protocols and enhance public awareness.

    Questions & Answers

    What is the purpose of the GSMA Open Gateway initiative in Malaysia?
    The GSMA Open Gateway initiative aims to strengthen online security by providing a federated network service that helps businesses identify mobile users, enhancing protection against digital fraud and identity theft.

    How does the Number Verification API work?
    The Number Verification API allows businesses to verify the identity of mobile users by matching their phone numbers with real-time data from the network, offering a more secure alternative to SMS one-time passwords.

    What benefits does the federated model offer developers?
    The federated model enables developers to create digital services that work seamlessly across participating operators without having to integrate separately with each operator’s APIs, making the development process more efficient.

  • Johor Bahru Set to Dominate Malaysia’s Data Centre Capacity with 60% Share by 2030!

    Johor Bahru Set to Dominate Malaysia’s Data Centre Capacity with 60% Share by 2030!

    Capacity is expected to reach 500MW this year.

    In a development poised to reshape the digital landscape of Southeast Asia, JLL has projected that Johor Bahru will hold 60 percent of Malaysia’s total data centre capacity by the year 2030. This transformation solidifies the city’s status as a vital digital hub in the region.

    According to JLL’s recent findings, Johor has rapidly ascended to become Malaysia’s premier data centre hub, with capacity surging from just 10 MW in 2021 to an astounding 500 MW anticipated by 2025. This impressive growth can be attributed to its strategic location near key regional networks, competitive costs, and robust government backing.

    The Johor-Singapore Special Economic Zone: A Catalyst for Growth

    At the heart of this evolution lies the Johor-Singapore Special Economic Zone (JS-SEZ), a groundbreaking initiative designed to propel the data centre industry in the region. Industry giants such as Bridge DC, GDS, and OpenDC are playing pivotal roles, enriching Johor’s reputation as Southeast Asia’s largest data centre market.

    Hyperscale Demand Fuels Expansion

    Meanwhile, a significant hyperscaler has ramped up investments, acquiring land within the Nusa Cemerlang Industrial Park. With a pipeline projected at 2,570 MW, Johor is on track to potentially surpass Singapore’s data centre capacity, a formidable feat that underscores the strong market demand. Fully occupied hyperscale facilities provide a glowing testament to this demand, offering investors enticing growth opportunities with manageable risks amid the booming digital economy.

    Operational Challenges Loom on the Horizon

    However, it’s not all smooth sailing; data centres face looming challenges beyond mere regulatory compliance. An impending rise in electricity tariffs set for July 1, 2025, poses a significant threat to operational viability, especially given that power costs are a major expense for these facilities.

    A Bright Outlook for Users and Providers

    For users, hyperscale pre-commitments will likely continue steering demand. Furthermore, the rapid developments in AI are expected to influence enterprise strategies significantly, while lease rates are predicted to hold steady. On the provider side, Johor’s strategic positioning, complemented by superior cable connectivity for digital infrastructure, attracts more hyperscalers. In response to the evolving landscape, the government is shifting its approach from unchecked expansion to a more regulated approval process, ensuring adequate infrastructure support. Developers are also embracing innovative strategies, integrating alternative water sources, renewable energy options, and sustainability frameworks to navigate these changes.

    Questions & Answers

    What is the projected data centre capacity for Johor Bahru by 2030?
    Johor Bahru is expected to hold 60 percent of Malaysia’s total data centre capacity, reaching 500 MW by 2025 and maintaining that dominance through 2030.

    Which initiatives are fueling Johor’s data centre growth?
    The Johor-Singapore Special Economic Zone (JS-SEZ) is a key initiative designed to enhance the data centre landscape, attracting major companies such as Bridge DC, GDS, and OpenDC.

    What challenges might data centres face in the near future?
    Data centres may grapple with increased electricity tariffs coming into effect on July 1, 2025, which could significantly impact their operating costs.

  • Equinix Expands Its Presence in India with New IBX Data Center Launch in Chennai

    Equinix Expands Its Presence in India with New IBX Data Center Launch in Chennai

    Equinix has made a significant stride in India’s burgeoning digital landscape with the opening of its first International Business Exchange (IBX) data centre in Chennai. Here, on a nearly six-acre site in Siruseri, the newly inaugurated facility—designated as CN1—will be seamlessly interconnected with Equinix’s existing campus in Mumbai, which comprises three IBX data centres.

    Driving Digital Transformation and Resilience

    This expansion is poised to bolster business digitisation, enhance resilience, and support artificial intelligence (AI) development across the region. With phase one of CN1 already operational, the facility will initially deliver 800 cabinets, backed by a hefty $69 million investment. Ultimately, the four-storey site is designed to accommodate 4,250 cabinets, showcasing Equinix’s commitment to meeting the demands of a high-density, compute-intensive economy.

    Engineering Excellence and Future-Ready Facilities

    Engineered with a fault-tolerant architecture that promises an astonishing 99.999 percent uptime, CN1 is also crafted to integrate liquid cooling systems, preparing it for the high demands of today’s technology. This is not just another data centre; it’s where your nearest algorithm might just feel at home.

    Connecting Businesses with Cloud Opportunities

    Equinix aims to enhance its interconnection services through offerings such as Equinix Fabric and Fabric Cloud Router. These services enable enterprises to construct robust hybrid multicloud infrastructures. Notably, customers in Chennai will enjoy low-latency access to major cloud service providers, including AWS, Google Cloud, Microsoft Azure, and Oracle Cloud, all of which are conveniently hosted at the Mumbai campus.

    Strategically Located for Future Growth

    Conveniently situated just 28 km from the Central Business District and close to anticipated submarine cable landing sites, the Chennai facility positions itself as a strategic hub for digital connectivity. With over 300 companies already hosted in India, including several network service providers and five internet exchanges, Equinix continues to solidify its leadership in the data centre sector. Globally, the company operates more than 270 data centres across 77 markets in 36 countries, boasting over 60 sites throughout the Asia-Pacific region.

    Questions & Answers

    What is the significance of Equinix’s new data centre in Chennai?
    The new IBX data centre represents a major investment in India’s digital infrastructure, aiming to enhance business digitisation, build resilience, and foster AI development in the region.

    How does equinix facilitate access to cloud services for businesses in Chennai?
    The data centre provides low-latency access to cloud service providers such as AWS, Google Cloud, and Microsoft Azure, ensuring businesses can effectively leverage hybrid multicloud infrastructures.

    What unique features does the CN1 facility offer?
    Equipped with fault-tolerant architecture and readiness for liquid cooling, CN1 promises an impressive 99.999 percent uptime, making it well-suited for the demands of high-density computing.

  • Jakarta’s Data Centre Market Sees Robust Growth: What’s Driving the Expansion?

    Jakarta’s Data Centre Market Sees Robust Growth: What’s Driving the Expansion?

    The Greater Jakarta data center market is witnessing significant expansion, with colocation inventory skyrocketing from 150 MW in 2021 to over 400 MW by the first half of 2025, according to a new report from JLL. This growth reflects the joint efforts of both established players and newcomers, including Equinix, which has launched its inaugural data center in Jakarta through a partnership with PT Astra International. Other notable entrants are Digital Realty Bersama and Digital Hyperspace, alongside ongoing expansions from DCI Indonesia.

    In this dynamic landscape, STT Telemedia Global Data Centres has not only topped out its second data center but has also broken ground on a third facility. This ambitious project forms part of a larger campus aimed at delivering an impressive 90 MW of power capacity.

    While eastern Greater Jakarta has long been the favored locale for hyperscalers, a notable shift in interest is occurring towards Jakarta’s CBD, where the majority of new construction projects are currently underway. Illustrating this trend further, LG Sinar Mas Joint Venture recently commenced construction on an AI-Optimized Data Centre in Jakarta, with expectations for it to be operational by 2026.

    Occupancy rates in existing colocation facilities hover around 70-80%, largely fueled by demand from cloud service providers, financial institutions, e-commerce giants, and over-the-top (OTT) platforms like gaming, streaming, and social media. While the specific demand for AI applications remains modest, the expanding landscape of cloud services and Indonesia’s ongoing digital transformation could catalyze future AI adoption across various sectors.

    Looking Ahead: Strategic Insights for Users and Providers

    As the digital economy flourishes alongside a burgeoning middle class, users can expect an accelerated uptake of cloud services. Financial institutions must brace for evolving data sovereignty regulations and compliance requirements, while e-commerce platforms will require enhanced capacities for managing increased transaction volumes and leveraging analytics.

    On the provider side, navigating infrastructure challenges will necessitate innovative solutions to ensure reliable power and connectivity. As activities in Jakarta’s CBD ramp up, strategic location selection will become paramount for providers. Additionally, as environmental regulations tighten, incorporating sustainability features into facilities will be crucial for competitive differentiation.

    Questions & Answers

    What factors are driving the expansion of colocation inventory in Greater Jakarta?
    The growth is primarily fueled by the increasing demand from cloud service providers, financial institutions, and e-commerce companies, which are all looking to expand their digital capabilities.

    How is the shift in location preference impacting the data center market?
    While eastern Greater Jakarta has traditionally been preferred, a growing interest in Jakarta’s CBD is influencing investment decisions, leading to more under-construction projects in this area.

    What future trends could shape the data center landscape in Indonesia?
    The ongoing digital transformation and increasing adoption of cloud services are likely to drive future growth, while sustainability considerations and regulatory compliance will play crucial roles in how the market evolves.

  • Malaysia’s Open DC Revamps Data Centres to Power the Future of Banking and Finance

    Malaysia’s Open DC Revamps Data Centres to Power the Future of Banking and Finance

    Open DC, the data centre division of Malaysia’s Extreme Broadband (EBB), is taking a significant step towards modernising its AI data centres to bolster security and improve network performance. The company has entered into a strategic partnership with Nokia, a move that promises to reshape the landscape of data connectivity across Malaysia.

    Revolutionizing Connectivity Across Malaysia

    Through this collaboration, Open DC will implement Nokia’s cutting-edge IP network solution to connect its data centres, which are strategically located across six key sites, including CJ1 Cyberjaya, JB1 Menara MSC Cyberport, JB2 Menara Ansar in Johor Bahru, PE1 Menara Suntech, PE2 Bayan Lepas Industrial Park in Penang, and the future D8-1 facility in Kedah. With this infrastructure upgrade, the firm aims to meet the rigorous demands of the banking and financial services sector.

    Aligning with National Vision

    This initiative is not just about enhancing performance; it also aligns perfectly with Malaysia’s National Cloud Computing Policy and the government’s MYDIGITAL vision, advocating for a robust digital economy. Open DC will leverage Nokia’s comprehensive IP networking portfolio—featuring advanced tools like the data centre gateway, data centre fabric, and quantum-safe networks—to create a future-ready digital infrastructure.

    Prioritizing Energy Efficiency and Cybersecurity

    The deployment of Nokia’s 7250 and 7220 Interconnect Routers will significantly improve performance while simultaneously reducing energy consumption—a dual win for sustainability and operational efficiency. In an age where cyber threats loom large like an unexpected rainstorm, the upgraded infrastructure introduces automation and DDoS mitigation tools, reinforcing Open DC’s resilience against such challenges.

    A Joint Venture for Innovation

    In a further demonstration of their commitment to innovation, EBB and Nokia have signed a Memorandum of Understanding (MoU), setting the stage for collaborative development of next-gen data centre solutions and quantum-safe networks. This partnership will not only craft a joint go-to-market strategy focused on AI and data centre connectivity, but it will also encompass offerings like multi-cloud access, enterprise connectivity, and enhanced DDoS protection for clients.

    Empowering the Future of Enterprises

    Open DC’s Managing Director, Wong Weng Yew, expressed enthusiasm about the partnership, stating that Nokia’s solutions will enhance security, scalability, and sustainability while opening new avenues for revenue generation among enterprises. With this alliance, businesses may find their digital footprint expanding in ways they had only imagined.

    Questions & Answers

    What is the primary aim of Open DC’s partnership with Nokia?
    The collaboration focuses on modernising Open DC’s AI data centres to enhance security and improve network performance across multiple sites in Malaysia.

    How many data centres will be interconnected through this initiative?
    The partnership will interconnect data centres located at six sites, including facilities in Cyberjaya, Johor Bahru, Penang, and an upcoming site in Kedah.

    What technological solutions will Open DC implement from Nokia?
    Open DC will utilize Nokia’s IP networking portfolio, including advanced routers and automation tools designed for high performance, energy efficiency, and robust cybersecurity protections.

  • Tech Giants Ramp Up Data Center Growth Across Southeast Asia

    Tech Giants Ramp Up Data Center Growth Across Southeast Asia

    Southeast Asia’s data center industry is on the cusp of a significant transformation, with projections indicating the market value will surge from USD 13.71 billion in 2024 to USD 30.47 billion by 2030, reflecting a robust 14.24% compound annual growth rate (CAGR). This impressive growth is powered by substantial investments from hyperscalers, an escalating demand for artificial intelligence (AI) workloads, and a strong shift toward sustainable infrastructure. Among the rising stars of this digital landscape, Malaysia, Indonesia, Thailand, and Vietnam are emerging as pivotal hubs, while Singapore continues to anchor the region.

    Malaysia: Southeast Asia’s Investment Powerhouse

    Malaysia is quickly becoming Southeast Asia’s primary destination for data center investments. The combination of competitive land and energy prices, along with its geographical proximity to Singapore, makes it an attractive location for hyperscalers and global data operators alike.

    In Johor, 42 data center projects with a total investment of MYR 164.45 billion have received approval as of Q2 2025. These ambitious developments are expected to create thousands of jobs, representing over 78% of the nation’s operational IT capacity. By 2030, Johor aims to account for 6% of Malaysia’s total data center capacity.

    Indonesia and Thailand Ignite Hyperscale Growth

    Indonesia is cementing its status as a crucial destination for hyperscale operations, currently home to over 14 cloud zones hosted by major providers like AWS, Google Cloud, Microsoft Azure, Alibaba Cloud, and Tencent Cloud. With a vibrant digital landscape and rapid e-commerce growth, demand for local computing resources is soaring. Although most developments are concentrated in Greater Jakarta, enhancements in energy infrastructure and connectivity are paving the way for new centers across Java and beyond.

    Thailand is also solidifying its position in the data center race, thanks to a prime location, a robust power grid, and favorable government policies. The government’s tax incentives, streamlined permitting processes, and renewable energy initiatives are attracting leading hyperscalers. Companies like NTT DATA, Amazon Web Services (AWS), and Equinix are expanding their presence in Bangkok, highlighting Thailand’s role both as a domestic hub and a gateway to the region.

    Vietnam’s Rapid Adaptation to AI Demands

    Though its data center capacity may be smaller, Vietnam is rapidly scaling up to meet the burgeoning needs of AI workloads. Key players like Viettel IDC are investing in high-efficiency facilities in both Hanoi and Ho Chi Minh City. The acceleration of cloud and AI adoption is particularly strong in sectors like manufacturing and finance, fueled by government programs aimed at fostering technology-driven investment. With a thriving digital economy and supportive policies, Vietnam is increasingly recognized as a rising star within the regional data center ecosystem.

    Harnessing Regional Synergies and Subsea Connections

    Despite facing land and power limitations, Singapore remains a central figure in the regional data center narrative. Its well-established connectivity ecosystem, bolstered by numerous subsea cable landings, offers unmatched interconnection capabilities. Neighboring hubs such as Johor, Batam, and Bangkok are reaping the benefits of this interconnectedness, providing more cost-effective and sustainable expansion alternatives while still leveraging Singapore’s global network reach.

    This clustering effect is creating a complementary ecosystem, where Singapore stands out as the interconnection hub, while surrounding markets absorb hyperscale capacity at scale. Experts believe this model is crucial for maintaining Southeast Asia’s long-term competitiveness.

    Sustainability Takes Center Stage

    In Southeast Asia, sustainability is transforming from a buzzword into a decisive factor in investment strategies. Malaysia is attracting hyperscalers by leveraging its abundant solar and hydropower resources for renewable energy sourcing. Thailand has introduced its Utility Green Tariff (UGT) to foster green power procurement as part of its commitment to achieving carbon neutrality by 2050.

    Tech giants are making bold commitments as well. Google and Microsoft have entered into long-term power purchase agreements to ensure their operations run on renewable energy. Microsoft’s 200-MWp solar PPA in Singapore indicates a strong appetite for substantial clean energy arrangements. Meanwhile, Equinix is exploring alternative energy solutions in the Philippines, amid rising tariffs, and Malaysian authorities are evaluating premium pricing for data centers that rely on conventional energy sources, highlighting how sustainability is reshaping the economic landscape.

    Advancements in Cooling and Efficiency

    To combat the rising power consumption associated with data centers, operators are pouring investments into innovative cooling solutions. Digital Realty has unveiled liquid-cooled servers at its SIN11 facility in Singapore, achieving energy savings of up to 29%. Keppel Data Centres’ IKDC 1 in Jakarta incorporates water-based cooling technology with N+1 redundancy, striking a balance between energy efficiency and operational reliability.

    Modular and high-density facility designs are now gaining traction, particularly as they cater to AI workloads that require substantial compute and power density. These developments signal a broader industry transition toward efficiency-driven competitiveness.

    Capital Investments Reshape the Future

    Hyperscale capital investments are thriving, with Microsoft committing USD 1.7 billion in Indonesia while expanding its footprint in Thailand. Google is directing over USD 1 billion toward Thailand, also eyeing Vietnam’s hyperscale potential. Meanwhile, NTT DATA plans to launch a USD 90-million facility in Bangkok by late 2025, and Equinix is ramping up its regional expansion through acquisitions in the Philippines.

    Private equity funds are increasingly becoming engaged, reflecting growing confidence in the long-term value of these investments. As demand for digital services rises, Southeast Asia is emerging as a safe haven for infrastructure investors seeking growth and resilience.

    Looking Ahead: Southeast Asia’s Growing Significance

    The region’s data center ecosystem is experiencing a fusion of factors including digital transformation, AI integration, government support, and a strong commitment to sustainable growth. Southeast Asia is positioning itself as a model for harmonizing rapid digital expansion with environmentally friendly practices—an approach that could redefine its role in the global data economy.

    During a recent interview, Raymond Policarpio, Vice President and Head of Strategy Management and Business Investments at Globe Business, emphasized the ongoing priority of investing in data centers to bolster this expanding digital ecosystem. From a Thai governance viewpoint, Narit Therdsteerasukdi, Secretary General of the Board of Investments, noted the critical need for digital infrastructure, including data centers, to align with both foreign investor demands and local business needs to maintain competitiveness in today’s digital economy.

    As the future unfolds, regional synergies—particularly between Singapore and its neighbors—will be vital in sustaining competitiveness.

    Questions & Answers

    What are the projected growth figures for Southeast Asia’s data center industry?
    The market value of Southeast Asia’s data center industry is expected to soar from USD 13.71 billion in 2024 to USD 30.47 billion by 2030, representing a compound annual growth rate (CAGR) of 14.24%.

    How is Malaysia positioning itself in the data center arena?
    Malaysia has emerged as a leading destination for data center investments, especially in Johor, which has seen 42 approved projects worth MYR 164.45 billion, expected to create thousands of jobs.

    What role do sustainability initiatives play in the region’s data center investments?
    Sustainability has become a key differentiator, with countries like Malaysia leveraging renewable energy sources and Thailand introducing green tariffs to attract investments and achieve carbon-neutral goals by 2050.