{"id":94559,"date":"2024-07-26T11:36:17","date_gmt":"2024-07-26T01:36:17","guid":{"rendered":"https:\/\/www.vibewire.com.au\/?p=94559"},"modified":"2024-07-26T11:36:57","modified_gmt":"2024-07-26T01:36:57","slug":"australia-to-become-largest-apac-data-centre-market-outside-china-and-india","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=94559","title":{"rendered":"Australia to become largest APAC data centre market outside China and India"},"content":{"rendered":"\n

Australia is set to host the largest data centre capacity in the Asia Pacific region outside the population outliers of China and India, according to new research from ratings agency Moody\u2019s.<\/p>\n\n\n\n

According to the report, Australia\u2019s data centre capacity, both current and under construction, stands at 2,038 megawatts, representing a 20% compounded annual growth rate between 2023 and 2026. The total capacity puts Australia as the third largest data centre market at the end of the forecast period, behind only China (4,908MW) and India (2,221MW), but highest among all other Asian countries, including established markets like Japan (1,632MW) and Singapore (1,060MW). Further, Australia\u2019s 20% CAGR ranks top among established markets \u2014 Korea (19%), Hong Kong (16%), Japan (13%), China (11%) and Singapore (4%).<\/p>\n\n\n\n

For the region overall, Moody\u2019s forecasts continue data centre growth fuelled by increased cloud, artificial intelligence and cryptocurrency adoption, while other factors such as regulation, power and water availability and geopolitics will also impact investment decisions. <\/p>\n\n\n\n

\u201cWe forecast APAC data centre capacity to grow at a CAGR of almost 20% through 2028, to about 24,800MW \u2013 more than double the current capacity of over 10,500MW,\u201d Moody\u2019s said. \u201cAPAC constitutes about 30% of global capacity expansion over the next five years.<\/p>\n\n\n\n

This expansion will involve investment of over US$564 billion through 2028. \u201cCapacity in emerging data centre markets, including India, Indonesia, Malaysia, Thailand and Philippines, will record growth rates of 29%-48% through 2025 given the smaller amount of existing capacity today, coupled with governments’ digital agendas and investor support. In more established markets such as mainland China, Japan, Australia, Singapore, Hong Kong SAR, China and Korea, data centre capacity will also continue to grow, but at a slower pace of 4%-20% given the larger base of existing capacity, geopolitical and data sovereignty concerns, and land availability.\u201d<\/p>\n\n\n\n

In its analysis, Moody\u2019s sees growing investment in emerging markets as data centre developers diversify their locations as a result of the geopolitical tension between the US and China. At the same time, a combination of regulation, such as tighter data sovereignty laws, and incentives that include tax relief, subsidies and preferential electricity rates will amplify growth in emerging data centre markets, the rating agency added. <\/p>\n\n\n\n

TELCO BENEFITS: In light of the data centre market development trend in APAC, Moody\u2019s said telcos now have an opportunity to \u201cdiversify and adapt their revenue streams\u201d to offset income declines in legacy businesses.<\/p>\n\n\n

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\u201cMore available capacity for data processing and storage bene its telcos by improving network reliability and reducing latency as data consumption grows,\u201d Moody\u2019s said. \u201cIt also complements other offerings such as cloud, and information and communication technology services. Telcos can further bene it by cross-selling data centre services to their enterprise customers.\u201d Moody\u2019s points to Singtel, NTT, Telekom Malaysia, PLDT and Telkom Indonesia among others as telcos that have formulated data centre strategies.<\/p>\n\n\n\n

\u201cTelcos have varying exposure to the data centre industry, with most owning and operating multiple data centres for their own operations and to lease out space on a retail or wholesale co-location basis to various enterprise, including hyperscale tenants,\u201d Moody\u2019s said. <\/p>\n\n\n\n

\u201cTelcos are also using joint venture structures to partner with domestic companies or even energy companies to establish greener data centre pro jects.\u201d As examples, Moody\u2019s pointed to Singtel\u2019s series of JVs for data centre expansion in Indonesia (with Telkom and Medco Power) and Thailand (with Gulf\u2019s Energy Development PLC and AIS) in 2022 and 2023 respectively.<\/p>\n\n\n\n

\u201cThe structure has allowed Singtel to tap into the technical know-how of power generation companies and local expertise of domestic telcos, reducing execution risk,\u201d the firm added.<\/p>\n\n\n\n

Tony Chan (Commsday)<\/p>\n","protected":false},"excerpt":{"rendered":"

Australia is set to host the largest data centre capacity in the Asia Pacific region outside the population outliers of China and India, according to new research from ratings agency Moody\u2019s.<\/p>\n","protected":false},"author":24,"featured_media":94560,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[273,35,5121,9281],"tags":[8726,4598,993,2139],"class_list":["post-94559","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australia","category-breaking-news","category-data-centres-networks","category-telecommunications","tag-darwin","tag-geelong","tag-melbourne","tag-sydney"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t