Executive Summary
The infrastructure services market in APAC continues to push forward and there is steady momentum in all pockets of the sector. Public cloud adoption continues to accelerate and data centre operators are competing aggressively to serve the demand for more capacity. Third party colocation has been a popular option for the hyperscale clouds in all of the major APAC markets, but things are shifting as hyperscale begins to expand into second tier locations that have different regulatory schemes and infrastructure quality. This is changing the build versus lease calculus when it comes to hyperscale data centres.
This second tier of markets has been on the radar for a while. But things have moved slowly. However, in recent months, that has changed. Activity has ratcheted up in markets like South Korea, Indonesia and Taiwan. Hyperscale cloud has landed in these markets and is actively expanding. And it will not be long before the spin-off effect from public cloud – MSPs and integrators managing customers on cloud and demand for interconnection – begins to kick in.
Edge infrastructure is still on the drawing board and APAC is no exception. But this segment is going to emerge sooner than later and the region is full of markets that would serve as instructive test cases. Can edge be viable in a region where city-states and large metros already have proximate infrastructure by virtue of constrained land and viable real estate? It is an intriguing question that will continue to be asked and underscores the diversity that exists across the region.
The APAC market continues to grow and develop. The maturity has brought it on par with other regions around the world that it is now increasingly integrated with. Infrastructure services has become a truly global market and APAC is no longer the next frontier, but an integral piece of a larger whole. This report examines the key themes and noteworthy developments of the recent quarter that illuminate the market’s current and future trajectory.
