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5000x1800 Asia Pacific 4
— Blog

Powering the Asia Pacific Data Center Market

Mark Smith, Managing Director - Asia Pacific at Digital Realty
July 23, 2020

Think of data centers as the central nervous system for the digital economy. Businesses that once mapped digital strategy in one-to-three-year phases must now scale their initiatives in a matter of weeks. They rely on us to take the complexity out of growing in a digital age and meeting the demands of building digital infrastructure. As the Asia Pacific digital economy accelerates, we are working hard to ensure that we provide a trusted foundation for digital businesses in the region.

Recently, we announced the development of a new, carrier-neutral data center facility within a purpose-built building in Kwai Chung, Hong Kong - to be named Digital Realty Kin Chuen (HKG11).

Aside from serving global and regional customers, this facility will support the continued development of Hong Kong as a key technology and data hub. It will also drive the adoption of cloud computing services and solutions across the region. Hong Kong is recognized as a regional leader in cloud readiness, having claimed the top spot in the recent Cloud Readiness Index based on cloud infrastructure, security, and regulation.

Data Center Power Asia

A thriving data center market

According to Structure Research, the Asia Colocation data center market is on track to become the world's largest market by 2021. It will be well ahead of other fast-growing markets like North America and Europe, growing at 12.2% CAGR. The pandemic further accelerates this growth as we see the increased intensity of data center capacity demands. Within this fast-growing region, we are committed to listening carefully to our customers' continued needs and challenges.

Before the pandemic, many enterprises were already on their digital transformation journeys with emerging technologies such as AI, 5G, blockchain, and IoT placing new demands on IT infrastructure. The explosion of such tech applications drives data centers closer to customers, and we foresee a higher demand for data centers within the Asia Pacific for the foreseeable future. We already have data centers in Singapore, South Korea, Hong Kong, Tokyo, Osaka, Melbourne, and Sydney, and we remain optimistic about the potential of this region.

Digital Realty’s upcoming data centers in the Asia Pacific

Besides our Hong Kong announcement, we held a groundbreaking ceremony for our first facility in South Korea (Digital Seoul 1 (ICN10)) last month. More than 500 customers and industry experts attended the virtual event to celebrate the country’s first carrier-neutral facility. The 12-megawatt facility will broaden opportunities for more international companies to expand their core digital assets into South Korea - one of the fastest-growing data center markets in the region.

As part of our ongoing efforts in Asia Pacific, we are also excited about launching our SIN12 facility in Singapore towards the end of this year. It will provide an efficient, sustainable, secure, and regulatory compliant location that will help customers build a future-proof foundation for their data center strategy. This facility will be one of the most energy-efficient data centers in Singapore, and it will help our customers realize their digital ambitions and sustainability goals.

SIN12 is already partially pre-leased to a major Singaporean multinational banking and financial services corporation, along with a leading global cloud provider. Following the announcement of the development of our second facility in Hong Kong, I recently had the opportunity to share more details on Digital Realty’s upcoming projects with the CNBC Squawk Box Asia team. You can watch the segment here - https://cnb.cx/31RhypC

We continue our laser like focus on better serving our customer needs and building the core infrastructure supporting essential digital services across Asia Pacific.

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