South East Asia Green Data Center predicted it would grow steadily in 2022. And the average growth is about 10%. This region’s forecast is similar to China and India, which are expected to grow by 8% and 9%, respectively.
The data center industry in South East Asia is developing rapidly and steadily. The main reason for this phenomenon is the increasing demand for cloud computing services. Many companies are looking for ways to save costs by outsourcing their data centers to service providers like DigitalOcean, Google Cloud Platform (GCP), Microsoft Azure, and Amazon Web Services (AWS).
South East Asia Green Data Center Market
It is driven by increasing demand for green data centers, rising adoption of cloud computing, and a growing need for energy efficiency in data centers.
However, a lack of awareness about the benefits offered by green data center solutions among the stakeholders can hamper future market growth.
The growth of this market can be attributed to the increasing awareness regarding the use of green data centers. This awareness has led to an increase in investments made towards constructing new facilities and upgrading existing facilities.
The expansion of cloud computing and big data analytics is also driving this market. These two applications are essential for processing large amounts of information, which has resulted in an increased demand for green data centers.
South East Asia Green Data Center Market has been grouped into Indonesia, Malaysia, the Philippines, and Thailand. These countries are projected to be the key contributors to the market’s growth in 2022.
Indonesia has been the fastest-growing market for the last three years. The growing number of data center infrastructure providers in Indonesia is expected to drive the data center market in the country over the forecast period. Government policies are also likely to positively impact this market’s growth during the forecast period.
Increasing government initiatives toward promoting renewable energy are expected to drive the growth of this market during the forecast period. In addition, the growing popularity of cloud computing among enterprises is also expected to impact its growth positively.
Digital Transformation in South East Asia
South East Asia has a population of 518 million people, and it is one of the fastest-growing economies in the world. It has been ranked as one of the World’s Most Competitive Regions by World Economic Forum (WEF).
Most countries in this region have adopted e-government policies intending to improve transparency, efficiency, and accountability through efficient use of information technologies (IT) infrastructure to deliver public services at lower costs while improving the quality of service delivery.
South East Asia is the fastest-growing region in the world. With a GDP of US$1.7 trillion, it will soon be one of the largest markets in the world. Half of the population is under 30 years old and more digitally connected than ever before.
Digital transformation is an essential part of this transformation. It’s estimated that one-third of all business revenue in South East Asia will be generated online by 2021, up from just 5% today. The digital economy is expected to grow at 20% annually until 2020.
With the rapid increase in mobile, cloud computing, and big data in South East Asia (SEA), we see that there have been significant improvements in the use of technology across all sectors in the region. It has increased productivity and innovation.
There will be more than 400 million internet users in South East Asia. This rapid increase in internet users will drive demand for digital services such as e-commerce, social media, and online entertainment.
We believe there are still many opportunities for businesses to harness the power of digital transformation to ensure that they remain competitive in this rapidly evolving market.
South East Asia Data Center Challenge
A major challenge for the South East Asia Green Data Centre is finding a balance between energy demand and supply.
The region’s growing electricity demand will require more power plants in the coming years. With most countries in this region still heavily reliant on fossil fuels, there is a need for green data centers that can help cut down on CO2 emissions.
Singapore, the data and voice communication hub in Southeast Asia, decided not to add a new data center. It means that Singapore companies that use data centers will find it challenging to meet demand.
The initiative to use solar panels and hybrid solutions for power generation in Singapore is already underway, but even for the data center industry, it is not enough. This challenge arises because Indonesia will stop supplying gas to Singapore due to the increasing domestic demand in Indonesia.
Indonesia has 180 million active internet users, or 5x more than Singapore’s internet users. This challenge also opens up green data center investment opportunities in Indonesia.
The Indonesian government is committed to supplying natural gas for power generation in the data center industry. Thus, data center carbon emissions in Indonesia can decrease by up to 50% by 2025.
Indonesia Starting to Build More Green Data Centers
Indonesia is becoming one of the fastest-growing countries in the world, and it’s expected to be one of the most populated countries by 2050. It means that there will be a huge demand for data centers.
Indonesia is starting to build more green data centers, especially in the capital city of Jakarta. There are three green data center projects in Jakarta. One of them is GreenexDC. Of the three projects, it is estimated that the total investment value will reach USD 500 million.
The government is trying to encourage the construction of data centers with high levels of energy efficiency and environmentally friendly design. The government has provided low-interest loans and tax incentives to encourage companies to build more green data centers.
Indonesia’s government has set goals to reduce greenhouse gas emissions by 29 percent by 2025 and 41 percent by 2030 compared with business as usual. To achieve this goal, it’s investing heavily in renewable energy projects across the country — particularly solar power plants.
This plan is part of Indonesia’s Digital Economy Strategy 2025, which aims to transform Indonesia into a digital economy hub within Asia by 2025. It means creating an environment where we can easily use digital technologies in every sector of society, including education, health care, transportation, finance, and trade.
Consider Choosing an Eco-Friendly Data Center for Your Business
As the World Health Organization (WHO) has declared climate change a public health emergency, it is only suitable that we take the necessary steps to protect our environment. Using renewable energy sources, such as solar and wind power, is one way to do this.
A green data center is an eco-friendly data center that uses renewable energy sources to power its operations. A green data center has low carbon emissions, uses sustainable building materials, and has a high level of energy efficiency.
While there is no one-size-fits-all solution for every company, there are many ways to reduce the impact of your business’ data center on the environment. Here are some options to consider:
- Choose a location that uses more clean energy sources, such as natural gas and renewable energy. These sources allow you to support clean energy while also reducing electrical costs.
- Use low-power servers and other equipment. It can help you save money on electricity bills while reducing your carbon footprint at the same time.
- Choose green IT solutions whenever possible. For example, if you use virtualization software instead of physical servers, you can eliminate many servers from your environment and save energy simultaneously.
When choosing an eco-friendly data center facility for your business, it’s essential to consider all these factors so that your facility fits into your overall sustainability plan.
One of the most enormous benefits of eco-friendly data centers is that they use less energy than traditional solutions. It means they can charge lower prices than competitors, saving you money in the long run.
Another benefit of eco-friendly data centers is that they help reduce greenhouse gas emissions and other pollutants that contribute to climate change.
Conclusion
Green Data Center will continue to be an increasingly important industry trend. South East Asia is a promising area for investment, especially in Vietnam and Indonesia.
South East Asia Green Data Center is becoming the most reliable and fastest growing data center provider in South East Asia. They are committed to providing customers with the highest quality data center facilities, followed by world-class customer service and attention to detail.
This year, Green Data Center seems to no doubt bring great changes in the data center industry. Green Data Center has revolutionized the data center world. While a green data center is not only a big market, as its slogan suggests, but also a growing market.
In addition, countries such as Malaysia and Singapore have advantages of their large economies and mature infrastructure.
- Internet user penetration in Indonesia has touched over 200 million users or more than 75% of the total population.
- The data center market size in Indonesia in 2022 continues to grow, estimated to reach USD 3.43 billion with a CAGR of 13.25% to 2027.
The development of a new generation data center that is more efficient and environmentally friendly in Indonesia, such as GreenexDC, will continue to grow. In addition to encouraging the growth of green data centers in Southeast Asia, it can also help the government reduce carbon emissions by up to 50%.