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Tag: datacenters

  • Unveiling Singapore’s Exciting New Data Centre Deals: What You Need to Know!

    Unveiling Singapore’s Exciting New Data Centre Deals: What You Need to Know!

    Development in Singapore’s data centre sector saw a sluggish pace in the first half of 2025, according to a report from Cushman and Wakefield. Ongoing restrictions on new developments have kept key indicators largely unchanged, echoing trends from the latter half of 2024. However, this stagnation has not dampened investor enthusiasm, with capital markets buzzing and activity remaining vibrant.

    High-Stakes Investments Shape the Market

    Significant financial maneuvers have emerged from operators in the space. Princeton Digital Group (PDG) has made headlines by securing a definitive agreement with Stonepeak for a staggering US$1.3 billion preferred equity investment. This follows PDG’s impressive US$1.2 billion debt financing. Collectively, PDG accrued US$2.5 billion in the first half of 2025, fueling its ambitious expansion plans across the Asia Pacific region.

    Partners Group Expands Its Data Centre Footprint

    Meanwhile, Partners Group continues to make waves by acquiring GreenSquareDC in Australia and Digital Halo from ARCH Capital. The firm intends to inject approximately US$400 million into the venture while ARCH Capital retains a minority stake. This initiative paves the way for transforming Digital Halo into a robust 500MW data centre platform spanning the Asia Pacific.

    Navigating Market Dynamics: NTT Data and Keppel’s Strategic Moves

    In another move reflecting the shifting landscape, NTT Data announced its intent to list the NTT DC REIT on the Singapore Exchange. This portfolio consists of six operational data centres from the U.S., Austria, and Singapore, valued collectively at US$1.57 billion. With this innovative REIT, the company hopes to expedite its capital recovery cycle, setting the stage for future investments and sustainable growth.

    Keppel, too, is making strides with the first close of its Keppel Data Centre Fund III, securing US$580 million from diverse global institutional players, including pension funds and sovereign wealth entities. The funds are earmarked for a suite of AI-ready hyperscale data centres positioned throughout the Asia Pacific, underscoring Keppel’s commitment to technological advancement.

    Financial Innovations: Nxera’s Green Loan and Alibaba Cloud’s AI Initiative

    Nxera has secured a noteworthy US$475.9 million green loan over five years to drive the development of its 58MW data centre in Tuas. This loan is backed by a consortium of major banks, including DBS and HSBC, and the facility is expected to launch in 2026. This financing underscores the growing trend of sustainable investments within the sector. Meanwhile, in a move that feels almost futuristic, Alibaba Cloud unveiled its AI Global Competence Centre (AIGCC) in Singapore, designed to serve as a collaborative hub for businesses and developers eager to harness advanced AI technologies. The centre aims to partner with academic institutions to cultivate a new generation of AI professionals, ensuring the region’s data expertise remains robust.

    Questions & Answers

    What has contributed to the subdued development activity in Singapore’s data centre sector?
    Ongoing restrictions on new developments have hindered growth, resulting in key market indicators remaining mostly unchanged since late 2024.

    How much capital did Princeton Digital Group raise in the first half of 2025?
    Princeton Digital Group raised a total of US$2.5 billion, combining a US$1.2 billion debt financing with a US$1.3 billion preferred equity investment from Stonepeak.

    What is the focus of Alibaba Cloud’s newly launched AI Global Competence Centre?
    The AI Global Competence Centre aims to foster collaboration among businesses and developers on advanced AI models while partnering with universities to train professionals in the field.

  • Telin Teams Up with Digital Realty Bersama to Boost Global Data Center Connectivity and Services

    Telin Teams Up with Digital Realty Bersama to Boost Global Data Center Connectivity and Services

    PT Telekomunikasi Indonesia International (Telin), a subsidiary of Telkom Indonesia that focuses on international telecommunications, has taken a significant leap forward by signing a Memorandum of Understanding (MoU) with Digital Realty Bersama, one of Indonesia’s foremost digital infrastructure providers. This partnership, unveiled at BATIC 2025, aims to enhance data center interconnection and bolster the rapidly evolving digital landscape of the country.

    Connecting Indonesia to the Digital World

    This collaboration promises to leverage Telin’s extensive global network alongside Digital Realty Bersama’s cutting-edge data center platform, ultimately delivering enhanced connectivity for industry players in Indonesia and improving access to international markets.

    Azmal Yahya, Chief of Product at Telin, highlighted the importance of this agreement, stating, “This partnership represents a significant milestone for Telin as we work to deliver more comprehensive and reliable interconnection solutions for our customers. With Digital Realty Bersama’s advanced platform supporting us, we are confident this collaboration will accelerate digital growth for enterprises both in Indonesia and beyond.”

    Opening New Doors for Businesses

    Andha Yudha Permana, Business and Commercial Director of Digital Realty Bersama, echoed this sentiment, expressing enthusiasm about the partnership. “We are honored to partner with Telin, a leading provider of international connectivity. Together, we will offer our customers seamless access to global markets with high speed and reliability, strengthening Indonesia’s role as a crucial digital hub connected to the world. This collaboration will unlock new opportunities for Indonesian businesses to compete on a global scale, facilitating direct and secure international data traffic.”

    A Strategic Leap Forward

    The MoU signifies the commencement of a strategic partnership, with a mutual commitment to innovating services, enhancing interconnection capabilities, and reinforcing Indonesia’s position in the global digital economy. As the nation strides forward, it might just transform into the tech-savvy giant of Southeast Asia that even the most pessimistic pundit couldn’t help but notice.

    Questions & Answers

    What is the primary objective of the MoU between Telin and Digital Realty Bersama?
    The partnership aims to strengthen data center interconnection and support Indonesia’s expanding digital ecosystem, enhancing connectivity and market access for local businesses.

    How does this collaboration benefit Indonesian businesses?
    The collaboration offers Indonesian businesses enhanced access to global markets through improved connectivity, enabling them to compete more effectively on an international scale.

    What role does the partnership play in Indonesia’s digital landscape?
    It is pivotal in reinforcing Indonesia’s position as a significant digital hub in Southeast Asia, unlocking new opportunities for innovation and secure international data exchanges.

  • VNPT and Partners Launch Vietnam’s Groundbreaking Hyperscale AI Data Center Initiative

    VNPT and Partners Launch Vietnam’s Groundbreaking Hyperscale AI Data Center Initiative

    Vietnam is set to take a bold step into the world of artificial intelligence with the announcement of a groundbreaking partnership. The Vietnam Posts and Telecommunications Group (VNPT), in collaboration with LG CNS and Korea Investment Real Asset Management, is embarking on a mission to develop a hyperscale AI data center in the country. This ambitious initiative aims to bolster Vietnam’s digital landscape and position it as a regional tech hub.

    Forging Strategic Alliances for Innovation

    The memorandum of understanding (MoU) was signed on August 12 at the Lotte Hotel in Seoul, marking a pivotal moment for all involved. Key figures present at the ceremony included VNPT Chairman To Dung Thai, LG CNS President Hyun Shin-kyun, and Korea Investment Real Asset Management CEO Kim Yong-sik, all echoing their commitment to this visionary project.

    Learning from the Best

    Prior to the signing, VNPT officials, alongside their Korean partners, toured the advanced LG CNS Hanam Data Center the day before. This visit was not just a sightseeing trip; it was an opportunity to assess cutting-edge data center technology and operational strategy that will inform their own project.

    Building the Future: A 40-MW Powerhouse

    The partnership will see VNPT channel its telecommunications and network expertise to support the construction of a 40-megawatt hyperscale AI data center. Task forces from each organization will collaborate extensively to develop comprehensive AI infrastructure, which encompasses everything from servers and storage to network systems and circuits. One can’t help but marvel at how far technology has come—who would have thought that mere servers could soon rival the brainpower of many humans?

    Accelerating Digital Transformation

    This initiative is not just about bricks and mortar; it’s a strategic move to accelerate Vietnam’s digital transformation. With VNPT leading the charge, the project is poised to introduce cutting-edge AI infrastructure that could redefine the tech landscape in the region, paving the way for a digitally empowered future.

    Questions & Answers

    What is the purpose of the partnership between VNPT, LG CNS, and Korea Investment Real Asset Management?
    The partnership aims to develop a hyperscale AI data center in Vietnam, enhancing the country’s digital infrastructure and capabilities.

    What role will VNPT play in the development of the AI data center?
    VNPT will provide essential telecommunications and network capabilities while collaborating on various aspects of the AI infrastructure.

    What significance does the hyperscale AI data center hold for Vietnam?
    The center is expected to accelerate Vietnam’s digital transformation, positioning the country as a competitive player in the regional tech landscape.

  • India Strengthens Digital Infrastructure and Connectivity Commitment, Boosting Space Collaboration Efforts

    India Strengthens Digital Infrastructure and Connectivity Commitment, Boosting Space Collaboration Efforts

    India is reaffirming its dedication to forging long-lasting partnerships with BRICS nations, placing a spotlight on digital infrastructure, space sustainability, and connectivity. This commitment is not just about building technology; it’s about crafting a resilient future together.

    Connecting the Nation

    During a recent address, Minister of State for Communications, Chandra Sekhar Pemmasani, painted a vibrant picture of India’s progress in digital governance. He emphasized that this advancement marries the rich tapestry of cultural heritage with cutting-edge technological innovations.

    BharatNet, a standout initiative, has successfully hooked up over 218,000 village councils to high-speed optical fiber. On the mobile front, indigenous 4G technology now reaches an impressive 95% of the country’s population, with India boasting one of the swiftest 5G rollouts globally—more than 470,000 base stations deployed in just two years. Talk about connecting the dots!

    Meet the Challenges of Space

    But it’s not all about the ground; the skies pose challenges too. Pemmasani raised awareness of increasing satellite traffic in low-Earth orbit (LEO) and urged for structured collaboration among BRICS members. The goal? To tackle orbital congestion, prevent spectrum monopolization, and ensure that space remains sustainable for future generations. After all, who wouldn’t want a clean and clutter-free cosmos?

    He also spotlighted India’s recent regulatory strides, including the 2023 Telecommunications Act and the Digital Personal Data Protection Act, showcasing a governance model that prioritizes user rights and data sovereignty amid a rapidly evolving digital landscape.

    As the Minister lays the groundwork for India’s technological future, one can’t help but wonder if we’re on the verge of a digital renaissance!

    Questions & Answers

    What initiatives is India undertaking to improve digital connectivity?
    One significant initiative is BharatNet, which has successfully connected over 218,000 village councils through high-speed optical fiber.

    How fast is India rolling out 5G technology?
    India has achieved one of the world’s fastest 5G rollouts, deploying more than 470,000 base stations within just two years.

    What challenges in space are being addressed?
    The rising satellite traffic in low-Earth orbit (LEO) is a primary concern, and India is calling for BRICS nations to collaborate in managing orbital congestion and ensuring sustainable space practices.

  • Viettel Begins Construction of Vietnam’s Largest Data Center

    Viettel Begins Construction of Vietnam’s Largest Data Center

    Viettel has started building a new data center campus in Ho Chi Minh City, Vietnam. This will be Viettel’s largest data center yet, boasting a capacity of 140 MW and around 10,000 racks. The facility will cover approximately 40,000 sqm (430,555 sq. ft.) on a 4-hectare site. The data center is expected to be operational by 2026 and fully completed by 2030.

    It will be situated in Tan Phu Trung Industrial Park, Cu Chi district, which is 25 km from Ho Chi Minh City and 15 km from Tan Son Nhat International Airport. Huyen Nguyen, Deputy Director of Viettel’s International Business Center, mentioned that the data center aims to achieve a power usage effectiveness (PUE) of less than 1.4 and comply with Uptime Tier III standards. Viettel currently runs 15 data centers in Vietnam with a total capacity of 87 MW.

    The company plans to build 24 data centers by 2030, with a combined capacity of 560 MW. Viettel’s IDC data center unit offers colocation and cloud services from five data centers across Hanoi (x2), Da Nang (x1), and Ho Chi Minh City (x2), totaling 25,000 sqm (269,100 sq. ft).

    Notably, Vietnam recently lifted restrictions on the foreign ownership of data centers, removing the 49% cap.

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  • IFC and Partners Invest USD 900 Million in Malaysia Data Center

    IFC and Partners Invest USD 900 Million in Malaysia Data Center

    The consortium, which includes DBS, Deutsche Bank, Global Infrastructure Partners (BlackRock subsidiary), HSBC, ING, and Natixis CIB, joined IFC in funding the first phase of the project in Johor Bahru. This initial 98-megawatt facility is part of a larger 72.5-acre campus that aims to deliver 300 megawatts of critical IT capacity upon completion. Once operational, the campus is expected to become one of the largest and most advanced data centers in the Asia Pacific, addressing the region’s surging demand for data processing capabilities.

    In May, 2024, the IFC initially announced a USD 150 million financing package for the project, which included a USD 50 million bridge loan that proved to be instrumental in advancing the development and attracting additional funding from the consortium. The IFC has now committed its second tranche (totaling USD 100 million) as part of this latest financing round, marking a significant milestone in the project’s development.

    “Our Johor campus is a landmark development for Yondr and will become an important part of Asia’s infrastructure as demand for capacity continues to grow in the region, driven by the acceleration of artificial intelligence (AI) and digital services,” said Chester Reid, Chief Financial Officer at Yondr. “Our success in securing a substantial loan facility to help complete the first phase of this campus highlights trust in the Yondr brand from leading financial institutions, following a number of major project milestones we have delivered this year in Europe and North America.”

    The hyperscale data center campus in Johor Bahru will be certified under the Excellence in Design for Greater Efficiencies (EDGE) program—the IFC’s flagship green building certification system. The certification highlights the project’s commitment to resource efficiency and sustainable design.

    The IFC served as the mandated lead arranger (MLA) for the financing package, with DBS, Deutsche Bank, HSBC, ING, and Natixis CIB also acting as MLAs, underwriters, and bookrunners.

    This marks IFC’s third investment in Malaysia since establishing its operations in the country in 2023.

    Judith Green, the World Bank Group’s Country Manager for Malaysia, is satisfied with the IFC’s commitment to a second tranche of financing for Yondr’s data center campus in Malaysia, stating, “This project will not only help to accelerate the digital transformation of the wider Asia-Pacific region, but also serves as a strong example of how IFC’s tailored financing solutions can de-risk projects and drive private-sector investment into emerging markets.”

  • China Launches Pilot for Foreign-Owned Data Centers

    China Launches Pilot for Foreign-Owned Data Centers

    The Ministry of Industry and Information Technology’s initiative will establish specific zones where foreign-owned facilities can offer digital infrastructure services to local companies.

    Jin Zhuanglong, the Minister of Industry and Information Technology, noted that the pilot program represents a new phase in China’s efforts to open up the telecommunications sector.

    Previously, foreign investors faced restrictions on owning and operating data centers in China, with local regulations limiting ownership to domestic companies. Foreign firms were only allowed to participate through joint ventures with local partners, with ownership capped at 50% in any consortium.

    The project will permit foreign investors to invest in value-added telecom services within four specified regions: Beijing, Shanghai, Hainan, and Shenzhen. Businesses in these designated areas can operate as wholly-owned ventures, providing data and transaction processing services.

    Wang Zhiqin, Deputy Director of the China Academy of Information and Communications Technology, stated that the pilot program aims to enhance the integration of digital technologies across various sectors nationwide.

    The project is part of China’s broader efforts to open up its services sector, including establishing free trade zones like the 120-square-kilometer Lin-gang Special Area.

    Chinese state media reported that 2,220 foreign-invested firms are licensed to operate telecom services within the country, as new pilot programs seek to boost foreign investment opportunities.

    The Ministry of Industry and Information Technology announced plans to closely monitor the pilot initiatives and may widen their scope when the time is right.

    HSBC’s Chinese fintech subsidiary is already aiming to capitalize on the program, having reportedly applied for an internet content provider license.

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  • Singtel and Telkom forge deeper ties in regional data centres and fixed broadband

    Singtel and Telkom forge deeper ties in regional data centres and fixed broadband

    Singtel and its Indonesian partner Telkom, the parent company of Singtel’s regional associate Telkomsel, have signed two memoranda of understanding (MOU) which was witnessed by Indonesia’s minister of state-owned enterprises Erick Thohir and vice minister of state-owned enterprises Kartika Wirjoatmodjo. The first of the two MOUs covers collaboration in the area of data centres, which marks a significant step in advancing Singtel’s regional data centre strategy. The second MOU involves a collaboration to support Telkomsel’s transformation into Indonesia’s leading consumer fixed broadband and mobile operator through a fixed mobile convergence strategy with Telkom.

    Expansion of regional data centre footprint to Indonesia

    To capture growth opportunities arising from the unprecedented digitalisation and cloud adoption in ASEAN, Singtel has focused on establishing a data centre platform that will work with partners to build and acquire data centres in the region. ASEAN has been experiencing robust data centre growth and the Singapore and Indonesia markets are projected to more than double in size, accounting for over 60% of regional growth by 2025.

    As strategic partners for over two decades, this move into data centres expands on the close collaboration between Singtel and Telkom to build out Indonesia’s mobile communications and digital infrastructure.

    Singtel Group CEO Yuen Kuan Moon said, “As businesses rapidly digitalise, and with the growing adoption of IoT, artificial intelligence and 5G across the region, demand for high-quality data centres is on the rise. This partnership with Telkom is an important step for our data centre strategy, bringing together the prime assets, expertise and networks of two market leaders in data centre operations in Indonesia and Singapore. As the largest digital economy in ASEAN, Indonesia is a strategic data centre market which expands our platform’s footprint to cover the three fastest-growing locations in the region – Indonesia, Singapore and Thailand. The platform will support the digital transformation needs of customers wanting to deploy into Indonesia, and Indonesian businesses looking to grow beyond the country. We look forward to deepening our longstanding collaboration with Telkom to capitalise on the favourable trends and tremendous market opportunity.”

    Telkom CEO Ririek Adriansyah said, “Telkom Group is currently consolidating our data centre business to answer the challenges of digital transformation. The regional data centre platform is a continuation of this data centre consolidation strategy and demonstrates our commitment to respond to customer needs and capture opportunities that will pave the way for our company to become a data centre player on a global level. These efforts require strategic partnerships with operators who have proven capabilities and track records. With its strengths and experience, Singtel is one of the strategic partners for Telkom in developing this regional data centre business.”

    Singtel is a leading operator of data centres in Singapore and has carved out its top-tier data centres, DC West and Kim Chuan 2, into a separate Singtel-owned entity with approximately 60 MW of capacity. In addition to securing a site in Tuas for a new integrated cable landing and data centre facility which will be ready in three to four years and add 30-40 MW in capacity, Singtel will continue to explore adding further capacity.

    An experienced data centre operator, Telkom has an existing data centre portfolio of 27 data centres in Indonesia and the region. It is also building a hyperscale data centre with 75 MW capacity to serve local and foreign companies and hyperscalers. Selected data centre assets from Telkom will be placed in the data centre platform. The companies will also collaborate on development opportunities and explore bringing third-party investors or partners into the platform.

    Besides Indonesia, Singtel has set its sights on the Thai data centre market. In February, Singtel signed a joint development agreement with Gulf Energy and Singtel’s regional associate AIS to start developing data centres in Thailand, and the new joint venture will be launched soon.

    Fixed mobile convergence strategy

    Singtel and Telkom will also jointly explore a fixed mobile convergence strategy for Telkomsel which will see an integration of its mobile business with Telkom’s consumer fixed broadband business. By combining the strengths of the two companies, Telkomsel will be able to enjoy significant synergies and enhance its leading position in the market with converged solutions that will give customers the best digital experience. This strategy will strengthen customer value proposition, in turn increasing customer lifetime value and household penetration.

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  • Automate data center network to simplify, modernize operations

    Automate data center network to simplify, modernize operations

    Cloud-Ready Data Center solutions from Juniper Networks enable businesses to simplify operations and experience with a modern, automated data center.

    Vietnam is one of 10 emerging markets in the global data center sector, with an impressive growth rate of $858 million in 2020, and is predicted to have a compound growth rate of nearly 15 percent annually by 2026.

    Amid the Covid-19 pandemic, Vietnamese businesses in the fields of finance, health, retail and consulting are tending to shift data to cloud computing solutions for its data management platform to keep pace with global technology. As a result, there is an unprecedented wave of data center investment.

    To meet the increasing demand for data center solutions, Juniper Networks has made significant investments to its Cloud-Ready Data Center portfolio providing reliable and secure products, including Juniper Apstra System, QFX Series Switches, PTX Series Routers, MX Series Universal Routing Platforms, SRX Series Services Gateways and Contrail Networking to help organizations save time and reduce costs for the deployment of complex data center networks.

    New era of automated data center operations with Juniper Apstra

    Juniper Apstra System offers a new way of thinking about data center network operations. The software enables users to automate the entire network lifecycle in a single system, easing their adoption of network automation.

    A key principle of the Juniper Apstra System is that optimum operations start with the best design. The system ties the architect’s design to everyday operations with a single source of truth, continuous validation, and powerful analytics and root cause identification. By automating Day 2 operations, the software raises efficiency and results by providing visibility and insights, incident management, change management, compliance and audit, and maintenance and updates.

    For fabric management of EVPN-VXLAN and IP fabrics, the system’s Apstra Fabric Conductor toolset automates each aspect of design, deployment, and operation. The toolset reduces the time from design to deployment from months or weeks to days or even hours, with validated templates and ZTP that sets up the network for you. When problems occur, the same toolset averts outages with predictive insights, shortens time to resolution, and diminishes human error with change control and fast, all-network rollback.

    Juniper’s switching, routing, and security platforms stand apart in their robust capabilities and scale, including complete EVPN-VXLAN, IP fabric, and threat-prevention capabilities. In particular, Juniper’s QFX, PTX, and ACX Series continue to lead the industry with best-in-class throughput and scalability, including 400G interfaces, renowned routing, the open programmability of the Junos OS, and comprehensive EVPN-VXLAN and IP fabric capabilities.

    In terms of network policy and control, Juniper Contrail Networking provides dynamic end-to-end networking policy and control for any cloud, any workload, and any deployment, from a single user interface. It translates abstract workflows into specific policies, simplifying the orchestration of virtual overlay connectivity across all environments.

    With Juniper Connected Security, users can safeguard their applications, data, and infrastructure across all network connection points. Also, users can use contrail networking to consistently define, manage, enforce, and view policies across the entire application-oriented overlay network from a central location.

    One of the most impressive cases is three-time NBA champion, Miami Heat. Since 2010, Miami Heat has been using and consistently investing in Juniper’s latest innovations including QFX5100, MX960, EX4300, SRX5400 and JSA Virtual Appliance to modernize the arena and build a network for media-hungry fans. Miami Heat was the first NBA team to offer ticketless entry for fans, and the digital innovation team is constantly adding to that success.

    The Heat also tapped into Juniper SRX5400 Services Gateway to protect the data center and enterprise edge with next-generation firewall services and Juniper Secure Analytics to monitor security events in real-time. Working together, the team of advanced Juniper solutions let Miami Heat innovate with new experiences without worrying about what the technology can handle.

    Additionally, Net One Systems, a leading independent Japanese integrator, also relies on Juniper Networks Contrail Enterprise Multicloud to orchestrate its multi-cloud environment. As hundreds of customers rely on Net One to operate and manage their cloud environments and when the number of customers have grown, their diverse needs have put a strain on network operations.

    Net One finds managing multiple cloud services more difficult with each new customer and growing complexity created challenges in building, establishing, and efficiently operating cloud services. However, with the assistance of Contrail Enterprise Multicloud, Net One can create seamless end-to-end multitenant environments by separating from physical networks using overlay models and managing tenants from a centralized controller.

    To further reaffirm Juniper’s strength in providing businesses with secure, automated, and AI-driven solutions, last year, Juniper Networks was named as the leader in “Magic Quadrant for Data Center and Cloud Networking”. This is Gartner’s latest report evaluating data center and cloud networking hardware and software for enterprises that procure and manage their own data center networking infrastructures for installation on-premises or in colocation facilities.

    The report mentioned Juniper Networks has a strong portfolio of hardware and software, with feature depth and excellent automation capabilities, which can meet the technical needs of nearly all cases in the market. Furthermore, Juniper’s roadmap to apply AI to improve data center networking efficiency also aligns with the emerging needs of customers.

    “We believe our recognition as a leader for the third year in a row comes from Juniper’s proven attributes, including automated fabrics, AI-driven insight, best-in-class security and scalable 400G designs. As technology leaders are driving the digital transformation of their businesses and rethinking how they measure the advancement of their data center and cloud infrastructure, I take great pride in how Juniper has continued to empower our customers in innovative new ways,” Manoj Leelanivas, Chief Product Officer at Juniper Networks said.

  • Mega-Clouds Drive Shift to Mega-Data Centers in Singapore

    Mega-Clouds Drive Shift to Mega-Data Centers in Singapore

    While Singapore has for years been the default data center location for US and European companies wanting to serve clients in Asia, the rise of the mega-clouds is changing market dynamics there as it has done in other major data center markets around the world.

    Companies like Microsoft and Google have built their own data centers in Singapore and leased capacity from data center providers there. Social networks LinkedIn (now owned by Microsoft) and Facebook occupy leased data center space on the island. There’s also demand from Asian mega-clouds, such as Alibaba.

    As they do elsewhere around the world – in places like Northern Virginia, Dallas, Chicago, and Dublin – these companies are generally after big multi-megawatt data center leases, driving more demand for wholesale data center services in Singapore than there has been historically.

    That’s according to recent data on the Singapore data center market from Structure Research, which says the market profile has shifted to “one that is increasingly geared to wholesale deployments.” Most of the 150 or so megawatts of new data center capacity that would be coming online in 2016 and 2017 was being built for wholesale deals, Jabez Tan, research director at Structure, told us in an interview.

    As Tan notes in an article for Data Center Knowledge that also ran this week, the trend toward wholesale can be observed in all major Asia-Pacific markets.

    The Singapore data center market has been growing steadily over the last several years, but the analysts’ data shows its next phase of growth is being driven primarily by wholesale data center demand from cloud giants, pushing providers to build data centers at massive scale. That 150-plus megawatts would be delivered across only eight data centers.

    Structure expects the Singapore market to generate $811 million in revenue in 2016 and grow 9 percent in 2017. The research firm projects the market will reach $1.6 billion in size by 2020, growing at a compound annual rate of 9 percent.

    In addition to being one of Asia’s primary commercial and financial hubs, Singapore is a hub for international connectivity, with landing stations for submarine cables linking it to major Asia-Pacific markets in India, China, Japan, and Australia, as well as the numerous emerging markets in the region, such as Thailand, Vietnam, Indonesia, and Singapore’s next-door neighbor Malaysia. In short, if you want network access to virtually all Asia-Pacific markets from one place, that place is Singapore. The city-state’s robust infrastructure, political stability, and a business-friendly government also help.

    There are 45 data center providers in Singapore as of 2016, with 53 unique operational data centers, according to Structure. Together, their critical power capacity is 240MW. The two top providers in the market are local telco Singtel and the Redwood City, California-based colocation giant Equinix. The two companies have a combined share of 55 percent in the Singapore data center market. Other top providers are Digital Realty Trust, Keppel Data Centers, Global Switch, and NTT Communications.

    Not all demand for data center capacity in Singapore is coming from cloud giants of course. There are plenty of examples of smaller companies, such as system integrators and other IT service providers from China and elsewhere overseas, taking data center space in Singapore to serve clients throughout AsiaPacific.

    Some of the recent examples include Retarus, a Munich-based messaging service provider, which announced a new data center in Singapore last month. The company lists Adidas, Bayer, Sony, and Honda as its clients. Another one is Fpweb.net, a St. Louis, Missouri-based managed cloud and security services firm, which announced a data center in Singapore earlier this month, promising it would reduce latency for its clients in Southeast Asia.

    While data center providers building in Singapore are mostly after the lucrative multi-megawatt cloud deals, they generally don’t pigeonhole themselves into being strictly wholesale or strictly retail providers. A company may prefer wholesale deals but it will sign retail colocation deals as well, Tan said. It goes the other way too. Equinix, for example, a company that specializes in retail colocation inside its network-rich facilities, has done some wholesale deals in Singapore, he said. Equinix usually makes the exception if a major strategic customer wants a wholesale deployment.

    Tan was not confident there would be enough demand for all the new wholesale capacity coming online in the 2016-2017 timeframe. Lots of empty facilities and only so many deals to go around usually means pricing for wholesale data center space will come down. “It’s pretty aggressive in terms of chasing after deals in Singapore,” he said.

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