Singapore has quickly become arguably the most attractive data centre market in the Asia-pacific region. The city-state features a robust network infrastructure, diverse connectivity to major Asia-pacific markets and a welcoming business-friendly environment backed by a stable political landscape. For all these reasons, Singapore has long been the primary connectivity hub of Southeast Asia and that has evolved – very naturally – into primacy in data centre infrastructure.
But it is the position of Singapore as a global commercial, financial and transportation hub that has taken things to the next level. Organizations based across Asia are setting up regional headquarters in Singapore and those in the US and Europe are following closely behind. This has created multiple pipelines of demand that have pushed forward continued network and infrastructure expansion.
In recent years, Singapore has also begun to emerge as a plausible alternative to Hong Kong as a gateway to the burgeoning Chinese market. There have been an increasing number of providers working towards a China-Singapore footprint as organizations look to serve the Chinese market and as China-based companies consider expanding infrastructure outside of China. At the same time, Singapore has become almost the default jumping-off point of choice for hosting and cloud infrastructure providers looking to set up a footprint in the Asia-pacific region.
The colocation market in Singapore has benefitted handsomely from these drivers and outsourcing is a trend that shows no sign of slowing down. But there are constraints. The market is maturing and the competitive landscape is tightening. All this has brought growth rates down a notch. But despite these shifting market conditions, there is little doubt that the overall trajectory remains in line and the pipeline of builds and investments being made – and tracked in this report – are clear indicators of overall sector health.
This report takes a close look at the size, growth trajectory and supply and demand dynamics of the Singapore colocation market. The market was worth nearly $1b in 2014 and is projected to grow in the low double-digit percent range in 2015 and 2016. We track supply and demand from both a space and power perspective and size the market on both an aggregated and sub-regional basis. This report is an excellent resource for any service provider, investor or enterprise end user looking to understand and project the data centre market in Singapore or find a service provider.