Markets
Overview
Market Drivers
- Shift from on-premises infrastructure to cloud-based solutions
- 99.51% of businesses are Micro, small and medium-sized enterprises
- 51% of enterprises are adopting more cloud-based solutions
- National cloud spending projected to be $2.6 billion by 2024
- 83% of BPO companies in the country expect growth in 2023
- Sectors driving growth include animation, game development, contact centres, cybersecurity, fintech, healthcare, ISPs, IT solutions and shared services centres
- Launch of 5G networks deliver ultra-fast speeds and mass device connectivity, driving data centre deman
- Increased adoption requires significant new computational power and storage capabilities
- Strong government support
- eCommerce Philippine 2022 Roadmap driving platform growth
Market Drivers
- 92% of organisations are planning to increase their use of cloud services in the next 24 months
- The cloud market is forecast to reach $1.2 billion by 2023
- Rising adoption of AI and ML technologies
- Government has launched Thailand 4.0 initiative
- Development of a National AI Action Plan
- Active expansion of 5G infrastructure
- High coverage and a significant number of subscribers
- Driving the need for data centre infrastructure
- Significant eCommerce platform growth
- High mobile phone penetration
- Driving increased need data centres and reliable connectivity
- Strong government support for digital infrastructure development
- Eastern Economic Corridor project, attracting investment and driving demand
Market Drivers
- 92% of organisations are planning to increase their use of cloud services in the next 24 months
- The cloud market is forecast to reach $1.2 billion by 2023
- Rising adoption of AI and ML technologies
- Development of a National AI Action Plan
- Active expansion of 5G infrastructure
- High coverage and a significant number of subscribers
- Driving the need for data centre infrastructure
- Significant eCommerce platform growth
- High mobile phone penetration
- Driving increased need data centres and reliable connectivity
- Strong government support for digital infrastructure development
- Eastern Economic Corridor project, attracting investment and driving demand
Manila, Philippines
- Location: Gateway Business Park, General Trias, Cavite
- Size: 40,000 sqm
- Partner: Megawide Construction Corp.
- Projected PUE: <1.4
Bangkok, Thailand
- Location: Bang NA Trad Road, Bangkok, Thailand
- Size: 23,000 sqm
- Partner: Central Pattana PCL
- Projected PUE: <1.4
Vietnam
Indonesia
Philippines
Population Dynamics
The Philippines has a young population who are heavy users of technology.
Their average daily use of social media is over four hours which is 60% higher than the rest of the world.
82% of Filipinos have social media accounts, with a median age of 26.3 and 1.5% population growth annually.
The Philippines has a GDP of 394 billion USD, making it an attractive region for technology investment.
Renewable Energy
The Philippines’ energy market is liberalised with generation, distribution and sales open to private
participation, which means users are able to contract directly with renewable energy developers.
Although its energy mix is dominated by coal (47%) and natural gas (22%), it has the 3rd largest
geothermal resource in the world, which makes it a very good option for baseload demand.
Market Regulations
The electricity market is partially deregulated, with a growing demand for corporate PPAs.
There is a favourable regulatory climate as a result of laws like the revisions to the
Foreign Investment Act, the Public Service Act and the Retail Trade Liberalization Act.
Market Drivers
The following factors are driving data centre demand:
- Business Process Outsourcing growth
- Enterprise Cloud adoption
- 5G Network expansion
- Growth of AI and Machine Learning
Thailand
Population Dynamics
With a GDP of 506 billion USD, Thailand is a dynamic market in Southeast Asia.
The population is very technology focused, with 85% using the internet and averaging over 2.5 hours per day on social media.
Renewable Energy
Thailand’s power market is partially liberalised. Generation is open to private companies while
distribution, transmission and sales are operated by state owned utilities. The country’s energy mix
is dominated by natural gas (66%) and coal (20%), biofuels and hydro account for 9% and 3%
respectively, while solar makes up ~3%.
The government has set a target of 30% renewable energy for power capacity in 2036; there are also
targets of 15 GW (now at 3.4GW) of solar and 3GW (now 1.5GW) of wind. They also aim to be net
zero by 2065, but have not set tangible renewable energy targets.
Market Regulations
Thailand imposes stringent requirements on the construction of data centres.
A business planning on building and operating a data centre in Thailand must obtain a
BOI Investment Promotion Certificate and a Telecom License. At 2022 APEC Summit
Thailand made it clear that they are trying to strike a balance between performance
and sustainability, prioritising recovery and growth, while keeping an eye on sustainable
development that will allow the country to thrive.
Market Drivers
The following factors are driving data centre demand:
- Enterprise Cloud adoption
- Adoption of AI and Machine Learning
- 5G Network Expansion
- eCommerce and Digital Services growth
Vietnam
Population Dynamics
Vietnam has a relatively young population with a median age of 32. 71% of
the population uses the internet, with an average of 2.5 hours per day spent on social media.
The country is one of the fastest-growing digital economies in
Southeast Asia and on track to reach an internet economy worth $57 billion by 2025.
This clearly demonstrates the growing demand for data centre infrastructure in the region.
Renewable Energy
Vietnam’s energy market is heavily regulated with transmission, distribution and sales controlled by the state-owned Vietnam Electricity (EVN), although generation is partially liberalised. The energy mix is comprised largely of coal 53% and hydro 26%; followed by natural gas 16% and other renewables 5%; although Vietnam already accounts for the largest solar capacity in Southeast Asia.
The country has a draft Power Development Plan (Draft PDP8) targeting an increase in renewable generation to 32% by 2030, outstripping even coal which is expected to account for 27%.
Market Regulations
Vietnam is seeking to reach carbon neutrality by 2050. The country has a favourable regulatory landscape for data centre investment. This includes a decision in 2020 to approve a National Digital Transformation Programme, a cybersecurity law and a decree to force onshore online service providers to store Vietnamese users’ information inside the country.
The Power Development Master Plan 8 in Vietnam, represents the latest market regulations in the country’s power sector. It outlines the strategic roadmap for power generation, transmission and distribution. It focuses on renewable energy development, grid integration and enhancing energy efficiency to meet the growing electricity demand and sustainability goals.
Market Drivers
The following factors are driving data centre demand:
- Digital Economy Growth
- Internet and Mobile Penetration
- Enterprise Cloud Adoption
- 5G Network Expansion
- AI and Big Data Analytics
