Frost & Sullivan: Rising Cost Pressures in Existing Data Center Hubs Shifts the Spotlight to New Markets

Frost & Sullivan: Rising Cost Pressures in Existing Data Center Hubs Shifts the Spotlight to New Markets PR Newswire SINGAPORE, July 10, 2012 - Asia Pacific market experiences renewed demand as organizations seek cost effective ways to meet increasing data center requirements SINGAPORE, July 10, 2012 /PRNewswire/ -- The traditional data center hubs of Hong Kong and Singapore are being confronted with several operational hurdles such as space restraints, higher realty prices and increasing operating costs. This is causing service providers to evaluate alternate low-cost locations such as Malaysia, India and China for further expansion in the region. Analysis from Frost & Sullivan (http://www.ipcommunications.frost.com), Asia- Pacific Data Center Services Market 2010, finds that the market earned revenues of over US$2.55 billion and US$3.03 billion in 2010 and 2011 respectively. This is estimated to reach US$9.25 billion in 2017. "Most data centers are working at high utilization levels and service providers are hard pressed to identify the right locations for new data center build outs that provide the required infrastructure, at a sustainable price," says Frost & Sullivan Research Analyst Mayank Kapoor. "Market participants are adopting virtualization, consolidation and cloud computing to alleviate some of these cost pressures." Further, the growing adoption of high-density blade servers is resulting in escalating power and cooling requirements.