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Southeast Asian markets hungry for new data centers

By Donna Donnowitz
July 28, 2014

China and India represent tempting opportunities for data center growth but investors would be remiss to ignore the growing market in Southeast Asia. The Association of Southeast Asian Nations (ASEAN), a regional cooperation between 10 states, represents a collective GDP of over $2 billion. Many of these nations are prime to expand their telecommunications infrastructure and offer the perfect location for new data centers.

Numerous Customers
A recent editorial from Datacenter Dynamics pointed toward ASEAN's population as one of the key reasons the region is an attractive location for data centers. The population of the 10 nations exceeds six hundred million and that total represents almost 10 percent of the entire world's population. In addition, the most populous countries in ASEAN (Thailand, Indonesia, Philippines) are experiencing momentum in their smartphone market. The need for data centers will explode as smartphones and their data plans begin to gain traction in Southeast Asia.

Diverse Opportunities
The nations in ASEAN differ greatly in GDP, population, size and present telecommunications infrastructure. While each member of ASEAN represents an opportunity for data center growth, some markets are more promising than others. For example, Datacenter Dynamic notes that Singapore is aggressively investing in upgrades to its infrastructure. The government is currently designing a data center park capable of boasting over 300,000 square feet of storage space. Indonesia, in response to new regulations requiring financial data to be stored within the country's borders, has shown a growing need for cloud solutions. Though the 10 states within ASEAN cooperate with one another their needs are very different. ASEAN nations facing infrastructure challenges could benefit from tech companies that provide flexible, long-distance solutions like remote console servers.

Expanding Market
Investing in ASEAN now may behoove investors in the future as the organization takes on new membership. International news outlet Deutsche Welle reports that Japan has begun to transition major investments from Chinese markets to businesses in ASEAN. Japan remains a world leader in the development and usage of telecommunications technology. Contacts developed through ASEAN markets today could be leveraged into cooperation with Japanese firms tomorrow.

A few nations under the ASEAN banner present less immediate opportunities for data center growth. Nations like Thailand, infamous for political instability, should still be targeted by investors. These locations also offer strategic benefits for those companies interested in expanding their market into China, Korea or Australia.

Perle's wide range of 1 to 48 port Perle Console Servers provide data center managers and network administrators with secure remote management of any device with a serial console port. Plus, they are the only truly fault tolerant Console Servers on the market with the advanced security functionality needed to easily perform secure remote data center management and out-of-band management of IT assets from anywhere in the world.


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