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Singapore data centre budgets to grow

Anuradha Shukla | Nov. 12, 2014
Projected to increase by 5%-10% in the next 12 months.

Data centre budgets in Singapore and the Asia Pacific region will increase by 5%-10% in the next 12 months, according to a new report by power management company Eaton.

This growth in budget is in proportion to an increase in growth of data centres in the region.

Data centre operators and customers in Singapore and APAC will need to practice sustainability due to factors such as huge energy consumption, increased economic and internet usage growth, in addition to steadily rising energy costs.

Energy bill accounts for more than half of the operating expenditure in a typical data centre in Singapore.

Singapore uses mature technologies as compared to those in emerging markets like Malaysia and Indonesia, and thus has older data centres.

Older server population in the country consumes about 60% of server energy but deliver only 4% of performance capability.

Driven by Chinese market

Spending on data centres in Asia Pacific would grow by 6.7 per cent to US$28 billion this year. This spend is primarily driven by the Chinese market, and in contrast, the global data centre spending growth outlook for the same period has been cut to 2.6 per cent.

About 11.5% of the respondents said they plan to increase their data centre budgets by more than 10% in the next 12 months.

Main factors that drive growth are virtualization, consolidation and big data requirements.

Asia-Pacific data centre infrastructure management (DCIM) market will grow to US$1,140.9 million by 2017.

Eaton's report also indicates that while established data centre markets, such as Hong Kong and Australasia, saw slight decrease in data centre power requirements, emerging data centre economies in South East Asia and China continue to show increase above the global average of 7.2%.

 

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