Singapore’s outsourced data centers made an estimated US$934 million this year. Source: Shutterstock

Singapore’s outsourced data market generates $934m in 2017

THE OUTSOURCED DATA MARKET, also knows as a co-located data centers, in Singapore generated an estimated US$934 million (SG$1.3 billion) this year — a figure that is projected to grow 13 percent in 2018, according to a recent study.

Structure Research, a Canada-based research firm that conducted the study, also said the market will grow at 12 percent compound annual growth rate to hit US$1.5 billion (SG$2 billion) by 2021.

A co-located data center is a facility that allows businesses to rent space to install their servers and other computing hardware, with the landlord provides the bandwidth, power, cooling and physical security.

According to the report, there are 46 outsourced data centers in Singapore. Third-party data centres make up about 30 percent of the overall market landscape, while proprietary ones constitute the rest.

The top-two service providers in Singapore are Singtel and Equinix with a combined market share of 46 percent from a revenue generation standpoint.

Other major providers include Digital Realty Trust, ST Telemedia and Keppel Data Centres, according to the report.

Speaking to Channel NewsAsia, research director Jabez Tan said the leaderboard is not a measure of power energy usage but one of power capacity provided to end-users.

He added that “massive-scale cloud providers” like Amazon Web Services, Microsoft and Google are opting to build their own data centers in Singapore, which is an anomaly in the Asia-Pacific region.

He added: “Singapore represents a strategic Asia-Pacific hub for the cloud providers where it makes sense to build their own data centers given the low risk and long-term viability of the country as a financial and global hub.”