Singapore to champion as a data center host in Southeast Asia. Source: Shutterstock

Singapore to champion as a data center host in Southeast Asia. Source: Shutterstock

Singapore is emerging as a globally preferred data center host

SINGAPORE is known for many things. Despite being relatively tiny in size, it has positioned itself as one of the world’s most competitive data center markets.

In a digital-first world, the country is expected to be the target of giant enterprises looking to colocate themselves in Southeast Asia. In fact, Facebook is building itself an 11-storey, 150MW data center in Singapore’s Jurong East worth US$1 billion.

The country, which data center experts believe has more than enough capacity supply to meet the demands in the next 5 years, is growing in prominence every day.

While many reasons can be attributed to its rise, enterprises are mostly attracted to the fact that the country is notably stable in multiple aspects.

Data centers are a form of long-term investment and therefore, enterprises looking for locations where their assets will be secure for years to come.

Singapore scores significantly above neighbors since it is not only politically stable but its technology industry also enjoys the support of regulators which means that unpredictable legislative laws that affect the realty dealership or scrutinize the data being stored are unlikely.

The country’s small size also plays a role since data is not generated on a large scale, which in turn eliminates the need for concentrated efforts to localize data.

Further, their high currency value – a result of a stable political climate – makes their market even more attractive.

Another contributing factor is the country’s stable power supply, thanks to the citizens’ efficient use of energy. Even at its highest peak, the country only uses up to 52 percent of its energy, making the remaining available for other commercial applications.

Further, key players have pointed out that the country can generate even more power if needed without straining its power grids, and enterprises acknowledge that these energy resources could further insure their infrastructure.

Albeit some might argue that disruptions can be physical, Singapore’s strategic location and geographical stability promise the security of the infrastructure. As mentioned earlier, being relatively small and resourceful have added value to the country’s construction market.

With strong, solid infrastructure, and little to no risk of natural disasters, companies are racing to bring their capital to Singapore. Pair that with their prime location in Southeast Asia and deep-water seaport, it seems like data centers will host much of the data in the region for the foreseeable future.

With all the strengths that Singapore possesses, it is expected that more advantages will accrue to businesses that host their data in the country.

Mindfully, enterprises from in and around the country should tap into the market to nurture business partnerships and collaborations.