Published on October 29, 2023, 8:40 pm

The demand for data centres is increasing due to digitalization and cloud adoption, leading to low vacancy rates and price increases. Challenges include higher costs, slowing economies, capacity challenges, and increased regulation. A hybrid approach combining on-premises infrastructure with cloud services is gaining popularity in Asia. Generative AI and visual computing technologies are driving demand for data centre services. Data sovereignty regulations impact data centre businesses but also present opportunities for colocation operators. Organizations should consider the total cost of ownership (TCO) when deciding between building or renting data centre services. Power and cooling requirements are evolving, necessitating infrastructure changes and innovations like liquid cooling. Trust is essential when choosing an infrastructure provider. Overall, the focus should be on providing cost-effective, scalable, and sustainable critical infrastructure.

The demand for data centres is on the rise due to the increasing digitalization of operations and the growing use of streaming and internet services. This surge in demand is leading to record-low vacancy rates and price increases for data centre capacity around the world, according to a report by CBRE.

However, the growth of the data centre industry may face challenges such as higher costs, slowing economies, new capacity challenges, and increased regulation due to sustainability concerns. These concerns revolve around energy and water consumption. Despite these challenges, there will be innovations in data centre design and technology as operators strive to meet the requirements of high-performance computing.

Daniel Pointon, the group CTO of ST Telemedia Global Data Centres (STT GDC), believes that continued growth in cloud adoption is good news for both builders and operators of data centres like STT GDC. Whether organizations choose cloud migration or prefer on-premises hosting, data centre providers like STT GDC can handle the real estate and operational aspects of managing a data centre.

In many parts of Asia, a hybrid approach that combines on-premises infrastructure with cloud services is gaining popularity. This trend benefits the data centre marketplace. Public cloud growth remains consistent, even with the shift towards a hybrid model.

Generative AI and visual computing technologies are driving an increased demand for data centre services. STT GDC is launching a new Infrastructure-as-a-Service (IaaS) offering focused specifically on AI workloads in partnership with Firmus Technologies.

Data sovereignty regulations have led many nations to implement controls on the dissemination and use of local information. Companies may need to localize their data processing, storage, analysis, and other uses in compliance with these regulations. Data sovereignty requirements impact data centre businesses but also present opportunities for colocation data centre operators who have global expertise and local presences.

When deciding whether to build their own data centre or opt for colocation services, organizations need to consider the total cost of ownership (TCO). Building a data centre involves significant capital investment in real estate, energy sources, and utilities. On the other hand, colocation provides flexibility and allows companies to focus on technology while outsourcing real estate and construction.

Data centres have a lifespan of over 20 years, but power and cooling requirements are always evolving. The rise of AI and GPU-based computing is driving infrastructure changes that require denser, more heat-intensive setups. Innovations like liquid cooling and containerized solutions are being explored to improve energy efficiency.

To ensure effective, scalable, and sustainable infrastructure, organizations should assess TCO and carefully scrutinize a provider’s track record. Trust is essential when choosing an infrastructure provider, as they must deliver on reliability commitments to ensure customers’ operations are always available.

In conclusion, the demand for data centres continues to grow due to digitalization and cloud adoption. The industry will face challenges but also opportunities for innovation. Data sovereignty regulations impact businesses but also create openings for colocation data centre operators. When deciding between building or renting data centre services, organizations should consider TCO and their specific requirements. Overall, the focus should be on providing cost-effective, scalable, and sustainable critical infrastructure.

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