Singapore gets a new data centre

Data centres are indispensable in a world of tech. Much more so if the area of operation is located within a bustling tech metropolis.

In recent years, Singapore has positioned itself as a regional tech hub. Tech startups have sprouted and so have the innovations. The government too has prepared fertile grounds for Singapore’s tech revolution.

Not to lose out on the action, a US global search engine giant announced on 1 August 2018 that it will add to its existing number of data centres in Singapore. The first data centre was built in 2011, and the second in 2015. This brings the total number of data centres it owns in Singapore to three.

As of 2017, the total number of operational data centres in Singapore amounted to 58. These are managed by a mix of 33 international and local providers. A local telco and a private company currently dominate the market (Source: Structure Research, 2017). Like the existing data centres in Singapore, the latest addition will provide wholesale colocation services. Colocation services in Singapore generate almost half the market’s value.

Meeting the Demand

The search engine giant has steadily increased its market presence in Singapore. Edging its expansion on is the ballooned user and usage volume of the company’s services. However, demand for the company’s services does not come from the island nation-state alone. The company’s Singapore data centres cater to the entirety of Southeast Asia’s needs.

The company’s vice president of Global Data Centres claimed that Southeast Asia has witnessed a surge in the number of first-time internet users. The number? More than 70 million. More Southeast Asians are embracing technology for their daily dose of entertainment and information. Hence, business opportunities abound for potential and existing regional businesses. The US search engine giant is thus bullish about their growth.

One of the major areas for expansion is business-to-business (B2B) services.  With more businesses going online, the US-based company offers its easy to use business analytical solutions. For example, its cloud platform provides complementary management tools. These include data analytics and machine learning functions. Local companies ranging from Singapore Airlines to startups have snapped up the technology to boost their customer service.

The company hopes the receptivity among its Singapore clients will be replicated across the region. With a third data centre available, regional business can access the company’s services and products with greater reliability and speed. Overall, this signals fresh investments into the region to catalyse much needed development.

What to Expect

Plans are on the way to make the third data centre the combined size of its first and second. The scale of the third data centre is justified based on the expected demand for business cloud solutions. A larger data centre translates into improved traffic and workload tolerance.

Infrastructurally, the vision is to reimagine it operations. The end goal is an eco-friendly data centre. Data centres are notorious for their voracious appetite for natural resources. In a bid to clean up data centre’s bad rep, the company will use tech solutions. For example, machine learning technology will be employed to lower the facility’s energy consumption.

The US search engine giant will also be handing out annual grants to community organisations and registered non-profits.

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