New rules in China and Vietnam are creating uncertainty for the fast-growing sector
🌏 Projected to grow at a 12% CAGR from 2023 to 2027, the Asia-Pacific data center market is set to reach $48 billion. This growth, however, is navigating through tighter data flow restrictions imposed by regional governments, particularly impacting cross-border data exchanges.
China and Vietnam have adopted stricter data regulations for national security, pushing businesses to reassess their data center strategies. Despite China's lead in data center numbers, the search for stable regulatory environments has companies eyeing Singapore, Hong Kong, and Australia as viable alternatives.
🌏 In Southeast Asia, the push towards digitalization is driving robust demand for data centers. While Singapore remains a hub for many companies' regional or global headquarters, there's a noticeable shift towards expanding data center operations into Malaysia, Indonesia, Vietnam, Thailand, and the Philippines, largely influenced by cost efficiencies...
The surge in Asia's demand for data centers is propelled by advancements in artificial intelligence and augmented reality, alongside pivotal shifts such as China's move towards a cashless society and the development of next-generation 5G and forthcoming 6G networks.