EdgeConneX, a global data center operator with regional headquarters in Singapore, is firmly set on catalyzing this shift. By deploying edge data centers across key markets in the Asia-Pacific region and forming strategic partnerships with local industry leaders, the company will establish a robust network infrastructure that aligns with recent escalating data demands through cloud and Artificial Intelligence (AI).

The APAC data center market is fit to burst

Source: Shutterstock

Kelvin Fong, EdgeConneX’s Managing Director for the APAC region, said: “Cloud technology and the increasing adoption of AI, are likely to lead to significant expansion into markets beyond the traditional APAC markets of Singapore and Hong Kong.” These new markets are developing now in India and Indonesia due to burgeoning digital transformations in their economies and throughout the region.

Mr. Fong noted that governments in Southeast Asian countries are also being more proactive and supportive towards digital infrastructure development. Leaders have picked up on how digital advancement can lay the foundation for exponential economic growth in the coming years, by attracting new skill sets, creating employment opportunities, and fostering innovation and global competitiveness.

Fiber investment has also worked as a data center investment driver. Don MacNeil, EdgeConneX’s Chief Revenue Officer, said: “Investments in fiber optics hold great significance, both domestically and across the wider region. They are notably simplifying the challenge of connectivity and adding essential network diversity.”

How EdgeConneX is reaching APAC

Malaysia

Government digitalization in Malaysia has spurred interest in expanding its data center infrastructure. Mr. Fong said: “The local government is playing a catalytic role by facilitating land sales, ensuring power availability, and streamlining administrative processes. These efforts are attracting data center operators and end-users to the area.”

Malaysia was also taking advantage of the data center moratorium in Singapore, which was only lifted in 2022, and attracted much of the country’s outbound traffic. As a result, the industries in Johor and Kuala Lumpur have seen significant growth and are now key markets.

He added that there are new opportunities for “mega-campuses” in Greater Kuala Lumpur rather than just the center, where limitations on space and power availability make it expensive. Mr. Fong said: “In fact, they have already opened up some of the technology parks just to cater to the hyper-scalers.” Last year, EdgeConneX unveiled its plans to build data centers in downtown Kuala Lumpur, Bukit Jalil in Greater Kuala Lumpur, and Cyberjaya, with nearly 300 MW of total capacity. Malaysia’s dense network connectivity, power availability, multiple port cities, and connections to 22 submarine cables position it as a strategic data center destination.

Indonesia

Indonesia is Asia’s third most populous country, and its population is still growing, so data demands are likely to continue escalating in parallel. In 2022, EdgeConneX acquired the GTN data center, which allowed the company to gain an initial foothold in its ninth market in Asia. In September this year, it secured $403.8 million in investment to support the growth of a 120 MW hyper-scale data center campus in Jakarta. As well as the capital, Mr. Fong says that Eastern Java and Batam are becoming key data center markets in Indonesia. He said: “They’re not just drawing in international demand, but also experiencing substantial domestic interest. With a thriving community of e-commerce and fintech enterprises in Indonesia, there’s a significant surge in locally-driven demand.”

China

In December 2021, EdgeConneX unveiled its new strategic partnership with leading Chinese data center provider Chayora to help expand its solutions throughout the mainland, including in Tianjin and Greater Shanghai. Tech Wire Asia recently spoke with Chayora CEO James Wei, to discover his insights on how China can sustain a thriving data center landscape going into 2024.

Philippines

In 2022, EdgeConneX forged a partnership with Aboitiz InfraCapital to capitalize on its extensive local market knowledge, as well as its land and power assets in the Philippines. Presently, discussions are underway with potential customers about breaking ground.

Mr. Fong noted: “Aboitiz brings a wealth of essential components to the table for success in the market. With ownership of power resources and real estate, as well as involvement in the construction industry, they offer crucial assets. These complement our [EdgeConneX] global data center platform, build, and operational capabilities, which is why we’ve partnered with Aboitiz.”

India

EdgeConneX has partnered with Adani Enterprises, India’s largest multi-infrastructure organization, since 2021. The joint venture ‘AdaniConneX’, has already set up a data center in Chennai and aims to build out 1 GW of data center capacity by 2030.

Mr. MacNeil stated: “Adani not only brings just the local infrastructure expertise of the Adani Group but, more importantly, the infrastructure supporting power transmission and generation. Adani Group has a similar goal for renewable, sustainable energy; to be at 25 GW by 2025, and it’s well underway. So, in many cases, India has the advantage of significant, fresh investment on all aspects – not only digital infrastructure but also the broader infrastructure requirements.”

Challenges faced by the APAC data center industry

One of the main challenges of expanding the data center industry in Asia is doing so sustainably. Getting access to renewable energy directly, rather than via carbon offsetting, can be difficult in certain countries like Malaysia, Indonesia, and Singapore. Mr. Fong said: “The region’s commitment to sustainability is evident, with countries like Indonesia and Malaysia planning to significantly ramp up their renewable energy generation in the coming years. These initiatives will eventually power the burgeoning data center industry, ensuring a greener and more sustainable digital future for Southeast Asia.”

EdgeConneX is making significant strides in sustainable data center development, even in countries where it is less straightforward. For example, the deal struck for the hyper-scale data center campus in Jakarta was explicitly for ‘sustainability-linked senior facilities’, meaning it will be equipped with sustainability capabilities. Adjustments will be made to the financing terms when EdgeConneX meets certain Key Performance Indicators (KPIs) concerning the Power Usage Effectiveness (PUE) of data centers, the use of renewable electricity, and achieving safety goals.

Looking to the future

Source: Shutterstock

As Mr. MacNeil noted, “Over the next 24 months, we will see the impact of the next wave of data center expansion, driven by AI, building on the already healthy pace of growth of Cloud. All of that also driving the virtuous infrastructure expansion in connectivity through terrestrial fiber optics and submarine cable expansion – it’s exciting to be a part of this wave.”

According to the Asia-Pacific Trade and Investment Report 2023-2024, the region posted a 9 percent growth rate in digitally deliverable exports from 2015 to 2022, outpacing the global average of 6.8 percent. Now, the continuation of this growth is paired with ambitious sustainability and net-zero goals, pledged by many APAC countries including China, Japan, South Korea, and Singapore.

EdgeConneX’s strategic vision and collaborations aim not only to meet the burgeoning demands of Cloud and AI but also committed to contributing to growth in a responsible and sustainable manner across the Asia-Pacific data landscape.

Mr. Fong said: “This sets the momentum for our investments in Indonesia and Malaysia. We aim to seize this market opportunity as it begins to rise. Therefore, pinpointing the optimal locations and timing is crucial for our success in this endeavor.”

To explore EdgeConneX’s comprehensive array of cutting-edge data centers throughout the Asia-Pacific region, and to inquire about tailored data center solutions for your business, visit the EdgeConneX website today.

The post The view of APAC data centers in 2024: Trends, challenges, and EdgeConneX’s impact appeared first on Tech Wire Asia.

领先的数据中心提供商 EdgeConneX 和朝亚于2021年12月宣布建立战略合作伙伴关系。EdgeConneX 已经是超大规模数据中心部署领域的全球领导者，因其在全球不同市场提供顶级解决方案方面的丰富经验和熟练程度而广受赞誉。朝亚在中国开发和运营前沿的超大规模数据中心园区，以其成熟的高密度、高性能计算（HPC）完备设计而闻名，朝亚擅长提供高效、定制的数据中心解决方案，从而加速客户业务的上市速度。EdgeConneX 与朝亚合作提供最先进的基础设施解决方案，以满足日益数字化的生态系统不断增长的需求。

Tech Wire Asia 采访了 EdgeConneX 亚太区董事总经理 Kelvin Fong 和朝亚首席执行官 James Wei，了解他们对中国如何在 2024 年维持蓬勃发展的数据中心格局的见解。

TWA：是什么推动了中国数据中心行业的增长？

JW：“中国在发展和提升云、人工智能和量子计算等关键技术能力的愿望正在创造合适的条件，让各种技术创新能够在中国蓬勃发展。

“人们越来越需要数字基础设施来支持新的企业应用和用户在线服务，特别是在互联网普及率继续以健康的速度增长的情况下。2023 年初，互联网普及率约为 73.7%。到 6 月份，这一比例已增至约 76.4%。

“此外，人工智能驱动的服务和能力的爆炸式增长需要比以前更多的高密度数据中心支持。随着人工智能技术不断融入日常应用，导致对人工智能训练和推理的电力需求更大。强大的超融合基础设施（HCI）系统可提供更强大的内部部署能力和计算能力。

“由于这些新的高密度系统，机架级的能源需求预计将迅速增加。这推动了更新的解决方案设计和功能，用于提供足够的能源和足够的冷却。”

KF：“中国一直在人工智能研发方面投入巨资。机器学习和深度学习等人工智能技术的实施需要大量的计算能力，因此需要先进的数据中心。

“此外，中国政府一直在推动政务云服务的发展。中国各个电信公司在建设和维护这些政府云基础设施方面发挥着至关重要的作用，满足了对强大数据中心的需求。

“中国蓬勃发展的电子商务行业也产生了大量与在线交易、用户行为和物流相关的数据。中国数字支付和金融分析等金融科技服务的发展推动了对数据存储和处理能力的需求不断增长。

“最后，自动驾驶汽车的开发和测试在很大程度上依赖于数据处理和存储。中国在自动驾驶汽车技术方面一直在进步。此外，实时收集和分析来自传感器和摄像头的大量数据，需要强大的数据中心基础设施。”

TWA：企业如何利用数据中心获得增长机会，同时有效管理计算能力需求和挑战？

KF：“中国企业可以利用数据中心的能力来适应下一代技术，特别是人工智能。数据中心提供人工智能算法、机器学习和数据处理所需的计算资源，使公司能够提取有价值的见解并改进决策流程。

JW：“数据中心还必须跟上技术发展的步伐并采用相关的尖端系统来增强数据中心的能力和性能。”

KF：“中国企业可以利用数据中心作为创新枢纽来促进协作、创造和创新。通过创造一个鼓励实验和开发尖端解决方案的环境，中国企业可以在快速发展的技术领域保持领先地位。”

JW：“企业可以与拥有技术能力的领先数据中心运营商合作，提供具有市场领先能量使用效率（PUE）的高效设计。在此过程中，企业可以采用根据具体要求量身打造的定制数据中心部署，以最大限度地减少效率低下的情况。”

TWA：据您所知，客户是否积极寻求节能解决方案，特别是那些旨在实现低 PUE 值的解决方案？

KF：“低 PUE 值的重要性取决于所涉及的具体技术。例如，在涉及人工智能训练的应用中，延迟不是关键因素，重点往往会转向优化计算机性能，而不是尽量减少延迟。在这类情况下，管理 PUE 值变得至关重要，许多客户探索各种策略，例如采用可再生能源来增强可持续性。

“此外，投资太阳能或风能等可再生能源可以带来长期成本节约。通过采用可再生能源，中国企业可以为更加稳定和可持续的商业模式做出贡献。”

TWA：您如何看待朝亚与 EdgeConneX 之间建立合作伙伴关系来支持中国不断增长的数字基础设施需求？

JW：“[通过]利用彼此最好的数据中心专业知识和能力。EdgeConneX 在全球超大规模部署方面拥有丰富的经验，而朝亚是中国[本土]平台和市场专家，拥有深厚的本地关系。由于朝亚很熟悉中国数据中心生态系统，我们可以快速执行。

“我们共同提供了一个完整的全球超大规模数据中心平台，涵盖 50 多个最热门的市场，随时随地满足企业的扩张需求。”

KF：“随着中国企业踏上全球扩张之旅，与强大的合作伙伴合作对于精简化这个扩张过程至关重要。这一战略联盟有潜力提供宝贵的专业知识、必要资源和专业服务，从而支持中国企业在数字领域的国际化努力。

“汇集我们的优势，我们可以利用双方顶级数据中心无与伦比的知识和能力。朝亚对中国数据中心的生态系统的熟悉程度将使我们能够快速执行。我们的合作伙伴关系将加速我们的集体成功。

“此外，两家公司都在积极培养自己在高性能计算解决方案方面的能力。这种融合符合我们的共同目标，并针对‘东数西算’战略建立了理想的双赢局面。”

要了解更多关于京津数据中心园区的信息，请访问：https://www.edgeconnex.com/locations/asia-pacific/tianjin/

有关大上海数据中心的更多信息，请访问：https://www.edgeconnex.com/locations/asia-pacific/shanghai-data-center-campus/

The post 中国迈向2024年数字化技术先进时代的征程：对话 对话EdgeConneX和朝亚 和朝亚 appeared first on Tech Wire Asia.

Source: Shutterstock

Leading data center providers EdgeConneX and Chayora unveiled a strategic partnership in December 2021 to expand their solutions throughout mainland China, including Beijing and Shanghai.  EdgeConneX has carved its niche as a global leader in hyperscale data center deployments, recognized for its extensive experience and proficiency in delivering top-tier solutions across diverse markets worldwide. Chayora is a trailblazer in data center innovation in China, renowned for its proven high-density, High-Performance Computing (HPC)-ready designs. The company excels in delivering efficient, customized data center solutions, allowing unparalleled speed to market. The collaboration between EdgeConneX and Chayora provides state-of-the-art infrastructure solutions in China that cater to the burgeoning demands of an increasingly digitalized ecosystem.

TechHQ spoke with Kelvin Fong, the Managing Director of EdgeConneX Asia Pacific, and James Wei, the CEO of Chayora, to uncover their insights on how China can sustain a thriving data center landscape in 2024.

THQ: What is driving the growth of the data center industry in China?

Source: Shutterstock

JW: “The country’s desire to develop and advance capability in key technologies such as cloud, AI, and quantum computing is creating the right conditions for tech innovations to bloom and flourish in China.

“There is growing demand for digital infrastructure to power new business applications and online services for users, especially as internet penetration continues to grow at a healthy rate. At the start of 2023, internet penetration was about 73.7 percent. By June, it had increased to about 76.4 percent.

“In addition, the explosion of AI-powered services and capabilities requires more high-density data centers than before to support. The continued integration of AI technologies into everyday applications will culminate in greater power demand for AI training and inferencing. Powerful hyper-converged infrastructure (HCI) systems deliver more powerful on-premises and computing capabilities.

“Power demands at the rack level are expected to increase rapidly due to these new high-density systems. This drives newer solution designs and features to provide enough power along with adequate cooling.”

KF: “China has been investing heavily in AI research and development. The implementation of AI technologies, such as machine learning and deep learning, requires significant computational power, driving the need for advanced data centers.

“Furthermore, the Chinese government has been promoting the development of government cloud services. Chinese telecommunications companies play a crucial role in building and maintaining these government cloud infrastructures, contributing to the demand for robust data centers.

“The booming e-commerce industry in China also generates massive amounts of data related to online transactions, user behavior, and logistics. The growth of fintech services in China, such as digital payments and financial analytics, contributes to the increasing demand for data storage and processing capabilities.

“Finally, the development and testing of autonomous vehicles rely heavily on data processing and storage. China has been making strides in autonomous vehicle technology. Further, collecting and analyzing vast amounts of data from sensors and cameras in real-time require robust data center infrastructure.”

THQ: How can businesses utilize data centers for growth opportunities while effectively managing computing power demands and challenges?

KF: “Chinese businesses can harness the power of data centers to accommodate next-generation technologies, particularly AI. Data centers provide the computational resources needed for AI algorithms, machine learning, and data processing, enabling companies to extract valuable insights and improve decision-making processes.

JW: “They must also stay abreast of technological developments and adopt relevant cutting-edge systems to enhance data center capabilities and performance.”

KF: “Chinese businesses can foster collaboration, creativity, and innovation by leveraging data centers as innovation hubs. By creating an environment that encourages experimentation and the development of cutting-edge solutions, they can stay ahead in the rapidly advancing tech landscape.”

JW: “Businesses can partner with leading data center operators with the technical capabilities to deliver efficient design with market-leading power usage effectiveness (PUE). In doing so, they can adopt customized data center deployments tailored to exact requirements to minimize inefficiencies.”

THQ: To your knowledge, are customers actively pursuing energy-efficient solutions, particularly those aimed at achieving a low PUE?

KF: “The importance of low PUE varies depending on the specific technology involved. For instance, in applications that involve AI training, where latency is not a critical factor, the focus tends to shift towards optimizing computer power rather than minimizing latency. In these cases, managing PUE becomes crucial, and many customers explore strategies such as incorporating renewable energy sources to enhance sustainability.

“Furthermore, investing in renewable energy, such as solar or wind power, can lead to long-term cost savings. By adopting renewable energy sources, Chinese businesses can contribute to a more stable and sustainable business model.”

THQ: How do you see the partnership between Chayora and EdgeConneX supporting China’s rising demand for digital infrastructure?

JW: “[By] leveraging the best-of-the-breed data center know-how and capabilities from each other. EdgeConneX has extensive experience in global hyper-scale deployments, while Chayora is the China [native] platform and market expert with deep local relationships. We can execute quickly through Chayora’s familiarity with the Chinese data center ecosystem.

“Together, we provide a complete global hyperscale data center platform spanning over 50 of the hottest markets, spring-boarding businesses’ expansion where and when they need it.”

Source: Shutterstock

KF: “As Chinese enterprises embark on their global expansion journey, collaborating with a robust partner becomes pivotal in streamlining this process. This strategic alliance has the potential to provide invaluable expertise, essential resources, and specialized services, thereby bolstering the internationalization endeavors of Chinese companies operating in the digital sector.

“Pooling our strengths, we can harness the unparalleled knowledge and capabilities of top-tier data centers from both sides. Leveraging Chayora’s familiarity with the intricacies of the China data center ecosystem will enable us to execute swiftly. Our partnership is poised to accelerate our collective success.

“Moreover, both organizations are actively cultivating their proficiency in high-performance computing solutions. This convergence aligns with our shared objectives and establishes the ideal win-win scenario for ‘East Data and West Computing’.”

For more information on the Beijing-Tianjin Data Center Campus, please visit here.

For more information on the Greater Shanghai Data Center, please visit here.

The post China’s journey towards a digitally advanced 2024: In conversation with EdgeConneX and Chayora appeared first on Tech Wire Asia.

Data center builders and operators are drawn to Indonesia’s strategic location in the Asia Pacific region, abundant land and power resources, and youthful and tech-savvy population. Furthermore, the government’s supportive policies have created an enabling environment for technology sector investments.

Shifting tides and market dynamics

Indonesia’s data center market, once characterized by an unwavering upward trajectory, is now facing pressing questions about the sustainability of its burgeoning demand for data. Take-up from large enterprises of cloud services has continued. However, major cloud platforms are looking to individual consumers for growth alongside businesses, tapping into their near-constant application use for everyday needs and streaming content. Artificial intelligence (AI) is a growing factor in new deployments, driven by the scalable and relatively low-cost power available locally.

Indonesia’s data center market remains resilient, supported by robust network connectivity, diversity, and strong demand for data services. As the market continues its rapid growth, it remains to be seen if power availability will continue to match or if constraints seen throughout much of Asia will appear in Indonesia.

Source: Shutterstock

Exploring new frontiers

Beyond the confines of the Greater Jakarta area, Indonesia’s data center market is venturing into new territories. Batam Island has emerged as a potential data center hub thanks to its proximity to Singapore. However, its development has been hampered by the sluggish pace of infrastructure development and power availability, posing significant challenges to its integration into the broader data center ecosystem.

Long-term prospects amidst short-term challenges

The nation’s long-term growth prospects remain bright. Propelled by a growing population, a flourishing digital economy, and a stable political climate, Indonesia is a compelling contender within the global data center landscape.

The thriving digital economy, projected to reach a gross merchandise value of $360 billion by 2030, will be a crucial driver for sustained demand. Additionally, enticing government incentives, such as tax reductions for data-related industries, will further boost investment.

The Indonesian government’s ambitious digital transformation initiatives, including the complete digitalization of its services by 2025, will also lead to a sharp increase in demand for data services. Progressive data protection regulations will also create a mature environment for long-term development.

However, the political uncertainty surrounding the 2024 presidential elections poses a potential obstacle. Navigating this transition period effectively will require a delicate balance between addressing short-term challenges and capitalizing on the country’s long-term technological advancement potential.

Moving forward: A path to success

Indonesia’s data center market stands at a crossroads, grappling with a multitude of challenges while poised to seize many opportunities. Navigating the shifting tides of the market demands a nuanced understanding of the intricate dynamics, a commitment to innovation, and a strategic approach that balances between short-term obstacles and long-term ambitions.

Source: Shutterstock

As the industry evolves, collaboration among stakeholders, infrastructure development, and adaptable business strategies will emerge as pivotal factors propelling Indonesia’s data center market towards sustained growth and relevance on the global technological stage. By embracing these essential elements, Indonesia can secure its place as a leading player in the international data center landscape, driving economic growth and shaping the future of digital connectivity.

For more information on EdgeConneX Indonesia, please visit here

The post Navigating challenges and unveiling opportunities in Indonesia’s data center market appeared first on Tech Wire Asia.

Over the last two decades, Singapore has made significant strides in solidifying its global data center hub position, capitalizing on its strategic location, robust fiber broadband connectivity, cloud services availability, and pro-business policies. Today, the city-state has formed a formidable digital infrastructure featuring 100 data centers, 1,195 cloud service providers, and 22 network fabrics. So it’s unsurprising that Nvidia Corp. saw 15% of its revenue come from Singapore in the recently concluded third quarter.

According to a US Securities and Exchange Commission filing, Singapore played a significant role in the US chip giant’s recent financial success, contributing US$2.7 billion of its US$18 billion revenue for the quarter ending October. The amount was a remarkable increase of 404.1% from the US$562 million recorded in the same quarter the previous year, surpassing Nvidia’s overall revenue growth of 205.5% from a year ago.

The power of Singapore – revealed. Source: Securities and Exchange Commission (SEC)

The growth puts Singapore ahead of every country except the US (35%), Taiwan (24%), and China, including Hong Kong (22%), based on CNBC’s observation. In the third quarter, 80% of Nvidia’s sales, as disclosed in the SEC filing, originated from the data center segment. The remaining portion was attributed to gaming, professional visualization, automotive, and other sectors.

SINGAPORE UNIS LAUNCH A “COOL” TESTBED FOR DATA CENTERS IN THE TROPICS

Dashveenjit Kaur | 12 July, 2021

“Cloud service providers drove roughly half of data center revenue, while consumer internet companies and enterprises comprised approximately the other half,” said Nvidia in the filing. That said, Singapore had its advantages, considering it is a global data center hub, hosting significant players including Amazon Web Services, Microsoft Azure, IBM Softlayer, and Google Cloud. 

What’s more, due to a robust network supported by 24 submarine cables, the country is also the landing site for a dense network of undersea cables, connecting it to other parts of Asia, Europe, Africa, Australia, and the US. A quick check on the Speedtest Global Index by Ookla shows Singapore has the world’s highest median fixed broadband speed.

Even Citi analysts acknowledged in a November 27 report that “Singapore is also a growing area of specialized CSPs standing up data centers in the region. The contrast becomes more pronounced when accounting for Singapore’s size. On a per capita basis, Singapore spent US$600 on Nvidia chips in the quarter, whereas the US spent only US$60 and China spent approximately US$3 per capita.

“That’s the billing location of the customer and not necessarily the point of consumption,” said Srikanth Chandrashekhar on LinkedIn, responding to a post by former Temasek director Sang Shin. Sang Shin had suggested the chips might be bound for data centers in Singapore, which seems a reasonable idea, since most Nvidia chips are headed for data centers, and Singapore has many such facilities.

The irony of building data centers in Singapore is exploded by the benefits the city-state brings. Source: LinkedIn

What’s next for Singapore’s data center sector?

According to an article by ASEAN Briefing, 7% of total electricity consumption in Singapore goes to data centers, and it is projected to reach 12% by 2030. In short, the city-state will likely attract more players in the market, especially after lifting a moratorium on data centers in January 2022. Initially enacted in 2019, this moratorium responded to the considerable energy consumption associated with data centers.

Singapore has rapidly emerged as a prime destination for this pivotal industry due to its technological prowess, regulatory strength, and enticing incentives.

OVHCLOUD EXPANDS DATA CENTER FOOTPRINT IN SINGAPORE

Aaron Raj | 10 November, 2023

Firstly, the Pioneer Certificate Incentive (PC) program encourages companies, including those in the data center sector, to enhance their capabilities and undertake new or expanded activities in Singapore. 

The incentive is aimed at companies involved in global or regional headquarters (HQ) activities, managing, coordinating, and controlling business operations for a group of companies. Designed to drive substantial investment contributions and foster advancements in leading industries, the PC aligns with the characteristics and potential of the data center sector. 

The incentive is a win-win situation for both companies and the city-state as to qualify; businesses must introduce advanced technology, skill sets, or know-how, surpassing prevailing standards in Singapore. Additionally, they should engage in pioneering activities that substantially contribute to the economy.

Another allure of incentives includes GST waivers on importing data center equipment and covering servers, networking gear, and cooling systems. Then there’s Singapore’s dedication to sustainability, that stands out through initiatives such as the SS 564 Green Data Centers Standard and the Data Center Carbon Footprint Assessment (DC-CFA) program. 

The nation’s commitment to data security and privacy is also reflected in its regulatory framework, notably the Personal Data Protection Act (PDPA) and the Cybersecurity Act, fostering a trustworthy environment for data center operations.

The post Singapore: the powerhouse behind Nvidia’s revenue appeared first on Tech Wire Asia.

In the last couple of years, silicon photonics has grown more prominent, largely due to the rapidly evolving world of data centers. Given the demand for higher data transmission speeds, energy efficiency, and increased scalability, silicon photonics has become a critical building block in data centers.

While this technology has been used commercially for at least the last decade, it has never achieved mainstream status, primarily because Moore’s Law scaling has met most power and performance needs at a lower price point.

Silicon photonics has been limited to applications such as networking chips, where price is less of a factor and latency and low power are critical.

HOW $1B AND 5 YEARS IN R&D WILL POWER THE ‘INTERNET FOR THE FUTURE’

Soumik Roy | 16 December, 2019

However, technologies are evolving at an unprecedented scale, causing bandwidth demand to rise continually. Especially since ChatGPT came on stream, creating an AI-ripple effect, more semiconductor players are talking about silicon photonics. Even Taiwan Semiconductor Manufacturing Co, the world’s most significant chip player, announced recently that it is betting big on silicon photonics.

What is silicon photonics?

The silicon photonics market. Source: Markets and Markets.

According to Intel Corporation, one of the few companies at the forefront of this technology, silicon photonics combines two of the most important inventions of the 20th century—the silicon integrated circuit and the semiconductor laser. “It enables faster data transfer over longer distances compared to traditional electronics while utilizing the efficiencies of silicon,” the company said on its website. 

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In fact, we are at a juncture where the market is witnessing a revolution driven by major players such as Intel, Cisco Systems, Inc., Acacia Communications, Inc., and NeoPhotonics Corporation. According to MarketsandMarkets, the silicon photonics market was valued at US$1.3 billion in 2022 and is projected to reach US$5 billion by 2028, growing at a CAR of 28.5% from 2023 to 2028. 

Opportunities in the APAC market.

In the Asia Pacific region, the market is estimated to garner the largest revenue by the end of 2035. Its growth is mainly attributed to the increasing number of data centers and the growing demand for high-speed internet connections in the region. 

What is TSMC’s plan?

As the world’s biggest contract chipmaker, already manufacturing the most advanced AI chips on the market, TSMC is looking to boost performances, according to a report by Nikkei Asia. Douglas Yu, vice president of pathfinding for system integration at TSMC, said, “If we can provide a good silicon photonics integration system… we can address both critical issues of energy efficiency and computing power [performance] for AI.”

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Yu was speaking at a forum earlier this week ahead of the opening of the SEMICON Taiwan industry fair. “This is going to be a new paradigm shift. We may be at the beginning of a new era.” Yu also noted that the driving force for a better and more integrated silicon photonic system is the massive computing power needed to run large language models — the technology that underpins chatbots like ChatGPT and Bard — and other AI computing applications.

So far, according to Yu, TSMC is working on technologies to build an integrated system, using its advanced chip stacking and packaging technologies. Yu told Nikkei Asia such an integrated system to combine and connect silicon photonics and different types of chips using its own chip packaging and stacking technology is still under development and has yet to enter mass production.

The basics of silicon photonics.

The post TSMC says silicon photonics could make ChatGPT more powerful appeared first on Tech Wire Asia.

These favorable factors have prompted businesses to expand their IT budgets. In 2021, the Philippines’ internet economy doubled to $17 billion, and it is expected to reach $40 billion by 2025, driven by various government initiatives and the continued acceleration of digital adoption.

As the country’s internet economy grows, so does the demand for data center services. Today, data center capacity in the Philippines is concentrated in the Greater Manila metropolitan area, but cities like Cebu and Davao are catching up rapidly.

The Philippines offers tremendous potential for data center operators and developers to succeed, supported by four key pillars.

1. Enabling faster cloud adoption by businesses

The Philippine digital economy is growing amid an increased adoption of cloud services by businesses looking to improve their operations, reduce their IT costs, and cater to consumer demand for novel services.

Post-pandemic, the e-commerce sector in the Philippines has experienced promising growth driven by increased smartphone adoption and internet penetration, which reached an estimated rate of 55.82 percent in 2022. As digital consumers embrace e-commerce – with 88 percent already doing so, according to e-Conomy SEA Research 2022 – business and consumer demand for robust cloud adoption continues to rise.

In addition, the government has plans to fortify and improve broadband connectivity nationwide. Data centers are a vital link between cloud adoption and economic regeneration, with each component mutually supporting the other.

Lastly, the Philippines has been actively nurturing a startup ecosystem, providing a platform for developing innovative enterprises. These startups rely heavily on data usage for various operations, from product development to artificial intelligence and user experience development.

2. Instituting favorable government policies for digital transformation 

The Philippine government has fostered a favorable regulatory environment to encourage data center growth, driven by a focus on promoting economic growth through job creation, investment flows, and a robust digital transformation agenda. Initiatives, such as the National Broadband Program and the Digital Philippines campaign, are aimed at improving the country’s digital infrastructure and supporting the growth of the IT industry, including the data center market.

Last year’s amendments to the Foreign Investments Act have played a crucial role in making the Philippines a digitally hospitable environment for people and businesses. These amendments, combined with streamlined bureaucratic processes, increase the Philippines’ attractiveness to foreign investors and position it to receive foreign direct investments. With increased resources and capital from foreign investments, businesses have a greater capacity to implement advanced cloud technologies into their operations and services.

Data centers are a vital component in supporting the government’s pursuit of a flourishing digital economy and are backed by various initiatives; these policies are aimed at driving stronger economic growth.

3. Building a renewable energy infrastructure

A steady supply of power is critical for data centers. The Philippines is making significant strides in developing its sustainable energy infrastructure and actively promoting renewable sources, such as wind and solar power. The country’s ‘National Renewable Energy Program for 2020-2040’ aims to generate half of the country’s power from renewable energy by the end of 2040. Numerous renewable energy projects are underway, projected to increase the combined solar and wind power by 15-fold by 2030. Industry players in the data center sector consider these developments crucial in maintaining the delicate balance between reliability, reducing carbon footprints, and lowering costs.

4. Developing a robust telecommunications infrastructure

The Philippines has a robust telecommunications infrastructure with an extensive fiber optic network. With ongoing subsea cable developments seven trans-pacific cables will connect the Philippines to the US by next year. Notable networks include Bifrost, Jupiter, and AAG. Furthermore, the Philippines government has collaborated with Facebook to implement the significant subsea cable Pacific Cable Light Network (PCLN), which will provide rapid internet services to the Philippines, matching the speed at which telecommunications giants operate. These developments and projects position the Philippines as a flourishing telecommunications location in the APAC region, supporting the country’s growing demand for data center services.

With Filipinos clocking in the region’s highest average of internet use per day, averaging almost four hours daily, the Philippines has the potential to become a hub of innovation and a key player in the APAC region. The country’s business environment and government policies provide a fertile ground for developing the data center industry, poised to play a crucial role in shaping the country’s digital future.

The post Cloud to the Islands: How the Philippines is positioning itself as a data center hotspot appeared first on Tech Wire Asia.

Alongside the increase in demand comes a realization that progress must be achieved with minimal environmental impact. Large technology companies have made significant pronouncements: Microsoft intends to be a carbon-negative company by 2030, and big tech companies’ ecological aims are massively dependent on the efficiency and power profiles of the data centres they operate. Every company now has (or should have) its environmental mission, so assuming at least some of their services are data centre-based, organizations should look for a DC provider and operator with the right green agenda.

We spoke recently to Steven Sprokholt (Senior Director of EMEA Project Management and  Sustainability) at EdgeConneX, a company with ambitious plans for ecologically-aware global expansions. We discussed the company’s aims and objectives, both for its environmentally friendly practices and its business strategy. The company intends to be fully carbon-neutral by 2030, a commitment it shares with many of its clients. But “being green” is still seen in many quarters as costly, a mindset Steven wants to dispel. “There are several attractive incentives for sustainable policies,” he said. “Attracting new talent to a company, for example, is absolutely aided by positive ecological policies. Plus, if companies have invested heavily in sustainability, they’re less affected by significant cost increases for power. Sustainability is, therefore, “risk reduction,” he suggested.

From the point of view of being a data centre operator and builder, there are two strands to pursuing green policies. The first is in the build of each facility: “There, I think the first step will involve low impact materials, meaning similar materials with a similar performance, but with a much-reduced carbon footprint. There are a lot of logistics going around a construction site, so that’s a difficult goal to achieve. Not impossible, but it’s a challenge,” he told us.

Operationally, too, there are steps to follow. “But with initiatives that we have already launched […] such as 24/7 carbon-free energy in our Houston datacentre, where we measure every single hour of the day, and (try to) match this to renewable energy sources when they are available. This can enable us to become truly carbon-free from an electricity consumption standpoint[1]. Here the issue is that even when you are buying renewable energy offsets or are relying on a purchase-power-agreement (PPA) that at any single hour, even when it’s a grey, less windy day outside, means that you will rely on a grid’s thermal energy supply. The question becomes: How do you get sufficient renewable energy: whether it is hydro, nuclear, or otherwise? Nuclear depends on your frame of reference, but at least it’s almost carbon-free. The challenge is, can you match those energy sources to supply your data centre at any given hour? And at what price point? That will be the main question.”

Companies commissioning data centres will always look to PUE figures to determine the carbon impact of their activities (“cooling is what drives PUE above one,” Steven said), but all company activities add or subtract from its overall environmental impact.

Regulators and public authorities perceive data centres as big warehouses filled with servers with very high energy consumption. They put a significant claim on the electricity infrastructure and compete for this scarce resource with other industries.

Convincing regulators and authorities that a data centre also has a large positive impact on society means looking at a data centre’s indirect effects. New data centres often enable businesses to move to the cloud away from hosting an in-house server. Significant reductions in energy use are due to both more efficient cooling and more efficient equipment. But there are many other factors in the mix, too.

“For example: In one area, machine learning can help us reduce outages and ensure equipment with business is operating at peak efficiency. There are also many other gains across industries, for example, in the healthcare industry. In cases of telesurgery, or telemedicine, it can seem very easy for a surgeon to operate on somebody across the world with sophisticated robotic devices. However, it means that latency needs to be virtually zero […] and we have edge data centres [that] make sure that latency is the lowest it can be. This means that a global expert can provide high-quality medical support and give patients a better life without having to travel on an aeroplane. Again, it is hard to quantify what the exact CO2 savings and societal benefits would be in cases such as these, but data centres play a pivotal role […], and I think sometimes it’s a little bit overlooked.”

Although adding the indirect effects of data centres may seem too intricate for proper quantifying, we can consider the “indirect” effects of the DC during the COVID pandemic. Because of cloud-based services, which allowed many people to work virtually, the business world achieved relative business continuity.  Without data centres, there would have been few video meetings and less collaborative working, and the economic effects on world economies would have been much worse. Similarly, in  our personal lives, we also achieved some continuity.  Our children could still learn virtually, and for entertainment, we could stream shows, play multi-player online games, work out with virtual trainers, and connect with our families, all thanks to the online applications enabled by data centres.

Interestingly, Steven said that the resources many relied on during the pandemic were already largely in place and did not require a mass mobilization of resources (and accompanying carbon emissions). “Again, in the Netherlands but this is true for the rest of the world, we saw huge increases in the amount of data being processed by data centres, not necessarily with a huge increase in power consumption. But because the capacity was there from day one, nothing changed. You could just start up Teams, and [all] these video calling platforms.”

As the demand for data centres grows, so does the EdgeConneX presence in the APAC region. But in line with its commitment to carbon neutrality, EdgeConneX believes, Steven said, “Access to renewable energy is critical here: we see it as a critical location factor.”

And as the company expands, part of its growth in the Asia Pacific includes third-party partnerships, such as its joint-venture, AdaniConneX in India, a newly launched partnership with Aboitiz in the Philippines, a strategic investment in Chinese data centre operator, Chayora, and more partnerships and market-entries planned for the region in the near future.

EdgeConneX also set up training programs with staff from each of those companies, showing the local professionals how carbon-aware operations can be deployed, as well as sharing lessons learned of safely operating data centres globally for the past decade with 5 9’s of uptime. That way, along with dynamic growth, providing edge compute, networking, and storage, EdgeConneX, can keep its green targets on track.

The company consults and exchanges best practices with other operators operating alongside it. Steven said, “We ask, what’s the smart way of doing things? What have our subject matter experts (SMEs) learned in the past couple of years? And how can we bring their expertise to our [partner] data centres.”

Although the future of ecologically-sound data centres might seem to be growing in adventurous, new technological leaps and bounds, like Microsoft’s underwater data centre, the addition of multiple factors creates a data centre operator that’s in tune with the planet’s ecology.

EdgeConneX has committed to the future through its sustainability strategy, green financing and procurement policies: find out more here.

Download the EdgeConneX whitepaper on how they are validating a 24/7 carbon-free energy approach as an effective solution for increasing the adoption of cleaner sources of energy; find out more here.

The post Adding Up the Ecological Positives for Green Data Centre Policy appeared first on Tech Wire Asia.

In fact, data centers support many of the digital innovations being used to fight climate change, but now, data centers also may require their own innovation-driven transformation. Some data center operators are adopting goals based on the vision of a “net zero” data center such as adopting a multi-tiered sustainability strategy.

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Experts at Vertiv recently stated that data centers will experience increased regulation and third-party oversight in 2023 as the world continues to grapple with the industry’s rising energy and water consumption against the backdrop of ongoing climate change. In some countries, regulations are already being implemented in the form of tax rebates which benefit businesses that increase their sustainability efforts.

“The data center industry is growing rapidly as more and more applications require to compute and storage, driving a corresponding rapid increase in energy and water use in data center facilities. The industry has understood that pursuing energy and water efficiency aggressively is key for future success and survival,” said Giordano Albertazzi, Vertiv’s Chief Operating Officer and President, of Americas.

Albertazzi also pointed out that increased regulation is inevitable and will lead to important innovations across our industry. The process may not always be easy or linear, but it can be navigated with the help of expert data center partners and innovative solutions that can anticipate the changes while meeting the always-increasing requirements of the data center applications.

In a recent report, Silicon heatwave: the looming change in data center climates, the Uptime Institute cited data from the Standard Performance Evaluation Corporation (SPEC) that showed server power consumption increasing by 266% since 2017. This surge is among various technical and market forces driving the focus on environmental awareness and sustainability in several of the 2023 trends identified by Vertiv’s experts.

(Source – Vertiv)

Achieving sustainability for the data center

Those trends include data centers facing increasing regulations. As pressure mounts to meet consumer demand for energy and water, governments at all levels are taking a harder look at data centers and their outsized consumption of those resources. For example, in Southeast Asia, Singapore is taking steps to control data center energy use and massive data center water consumption.

Apart from regulations, hyperscalers are shopping off the rack. A recent Omdia survey showed 99% of enterprise data center operators saying prefabricated, modular data center designs will be a part of their future data center strategy. In 2023, Vertiv’s experts anticipate a continuing shift in the same direction among hyperscalers as they seek the speed and efficiencies standardization delivers.

Next, diesel generators are about to meet their end. The diesel generator represents stored energy that largely goes unused while still requiring maintenance or fuel replacement after periods of inactivity. Then, when pressed into service, generators produce carbon emissions operators are desperately trying to avoid. Already, some organizations are relying on batteries for longer load support – up to five minutes in some cases – and even designing their data centers with minimal generator capacity.

Apart from diesel generators, higher densities are altering thermal strategies. According to the Uptime Institute’s 2022 Global Data Center Survey, more than a third of data center operators say their rack densities have rapidly increased in the past three years. This is especially true among larger enterprise and hyperscale data centers, where nearly half of those operating facilities at 10MW and above reported racks above 20kW and 20% claimed racks higher than 40kW.

This is consistent with the maturity of liquid-cooled server technologies and the increasing acceptance and adoption of such technologies. The aforementioned increases in server power consumption are happening as the need to add capacity quickly is growing, challenging operators from all sides. This leaves them little choice but to explore the boundaries of existing facilities by adding computing in tight spaces, increasing rack densities, and creating thermal profiles that require liquid cooling.

While liquid cooling is not a new technology, the early wave of successful, efficient, problem-free deployments in high-density environments has provided proof of concept that will boost adoption in the coming year. The addition of direct-to-chip cooling to new OCP and Open19 standards will only accelerate this trend.

Vertiv is also predicting that in 2023 the metaverse implementations leveraging 5G networks will enable the ultra-low latency to feature the application demands. Ultimately, this will require higher-powered computing in those 5G edge locations. As the edge of the network becomes more sophisticated, so will the infrastructure needed to support it. This will include technologies such as artificial intelligence and virtual reality planning and management systems and increased adoption of lithium-ion UPS systems at the edge.

(Source – Vertiv)

Southeast Asia’s moment to shine

With sustainability demands increasing, the data center industry in Southeast Asia is developing to meet these demands specifically. The region has already seen investments in data centers increasing tremendously post-pandemic and is expected to continue for the next few years. Singapore has already established itself as a leading example when it comes to sustainable data centers. Now, companies are building and developing sustainable data centers in neighboring Malaysia and Indonesia as well.

Teoh Wooi Keat, Country Manager for Vertiv in Malaysia explained that the country is already seeing increased players entering the data center market. Some of the industry’s biggest names are already making the most of Vertiv’s infrastructure to set up their data centers across the nation, with the state of Johor being a prime location currently.

At the same time, with the Malaysia announcing tax rebates for ESG initiatives taken by organizations, he expects the demand for sustainable data centers will only increase in the country as well.

According to Cheehoe Ling Vice President, Infrastructure Solutions Vertiv Australia, New Zealand, Southeast Asia, and India, there’s a wide range of sustainable technologies that are being deployed or planned to increase asset utilization, maximize efficiency, reduce emissions, and minimize water consumption.

These include intelligent power management through eco-mode operation and Dynamic Online mode. There is also the use of renewable energy like fuel cells to power data centers as well as lithium-ion batteries for a cost-competitive transition to renewable energy. Apart from that, data centers are also using chilled water-free cooling systems and water-free direct expansion systems, and liquid cooling for high-performance data centers.

“Vertiv is committed to working with our customers in solving the complex challenges related to critical digital infrastructure. We recognize that the design, development, use, and disposal of our products are critical to the longevity of our industry and the greater world. We adhere to all locally applicable laws and are in the early stages of a multi-year path to establish and execute an ESG strategy,” stated Ling.

The post Sustainability in energy and efficiency looms data center in 2023 appeared first on Tech Wire Asia.

In fact, the number of cybercrime reports in Australia had shot up by 13% in a year which is almost one cybercrime in every seven minutes in the country. What’s more concerning is that these figures were reported even before the high-profile privacy breaches took place.

As such, the government is looking to ensure the right steps are taken to mitigate the matter. The country is already looking to move towards a more proactive approach towards cybersecurity. This includes businesses ensuring their data is fully secured, including monitoring their supply chain and data centres that are used to process and store data.

One company that has already been ensuring they meet all data security and sovereignty requirements by the Australian government is Macquarie Data Centres (MDC). As one of the world’s most certified data centre operators, MDC has been delivering data centre solutions in Australia for over two decades.

Supported by over 200 engineers, MDC is also used and trusted by nearly half of all federal government agencies in Australia. As they operate their own sovereign Australian data centre, they are able to customize any design for customer needs and can scale as the customer requires as well.

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Keeping Australian data safe

According to David Hirst, CEO of Macquarie Data Centres, the market in Australia is big enough for them to grow within the country itself. As an Australian-owned and operated data centre company, MDC fits best when it comes to the data requirements of most organizations today.

“When you have a major cyber incident, people start to question where the data resides, who has control of the data and who can actually gain access to the data. I think that’s the difference between data residency, which is data being in Australia, and data sovereignty, where legal jurisdictions reside over and even though it’s in Australia, there are multiple legal jurisdictions,” said Hirst.

For Paul Christensen, GM of Data Centres & Security at MDC, one of the biggest challenges when it comes to data centres today is not just about having the data stored there but also who has access to it. As a service provider, MDC’s personnel that are supporting those facilities need to be Australian. And particularly in the case of data sovereignty, it’s a case of having cleared personnel that have some sort of security vetting, that can access those environments.

“It’s not just the data, but the environment. It does extend beyond that nucleus of what’s inside the data centre to the way in which the entire environment matters. I think that’s one of the key challenges for providers today. And being able to say that we do have a sovereign service and also cleared engineers that have gone through the security vetting process, creates a bit of a differentiating factor for us. We’re also able to deliver the standards that sit around the data centre from a compliance perspective, whether they be local government standards, federal government standards, or a range of security compliance, that you can expect to be embedded into the way that the business operates,” explained Christensen.

Cleared by the government

Interestingly, Hirst also highlighted that while having cleared engineers in the data centres gives them an edge, the skills shortage is still a huge problem. This is why MDC is focused on attracting graduates from universities and enlisting them in a graduate program with them so that they can grow with the company and eventually move into different parts of the business. Hirst added that this has been very helpful in dealing with the skill shortage environment and creates loyalty. More importantly, the employees will become part of the culture as they can grow with the company.

“When it comes to skills, we make sure they are Australian citizens that will have to be cleared by the government. This means that we can scale our customer base because I think a lot of people think data centres are just an infrastructure investment. But there’s more to it.  It’s becoming a combination of infrastructure and also the people that run it,” explained Hirst.

Apart from the skillset, cybersecurity is the next concern. MDC has its own cybersecurity business. It has its own security operation centre that provides its own scene, correlation engines and other bits.

“We operate the data centre level, but we understand the applications that they’re putting into their stack and the infrastructure they’re putting inside the racks. And the connectivity that goes inside the data, having that view and lens on the world means that we can very quickly ascertain cyber threats and scan vulnerabilities and all those other bits and pieces. We’re doing that consistently, monthly on a periodic basis. We feel quite comfortable that we’ve got very good perimeter security,” said Christensen.

Both Christensen and Hirst also agree that businesses in Australia are now seriously looking at having sovereign capabilities as part of their conversation when looking for a technology partner. Be it cloud or data centres, the importance of having the best practices of data sovereignty will only continue to be a key focus for organizations from now on.

With the Australian digital economy also continuing to expand and the future of work redefining digital services and data security, organizations would have no choice but to ensure they meet the regulatory requirements.

“The digital footprint has grown significantly. The catalyst explosion is continuing post-pandemic. What that means is for our customers that are serving these industries, their capacity planning has to improve. For example, Sydney has been exploding with data. Data sovereignty and data residency, and more security aspects around data are becoming crucial not only for the federal government but for corporate and governance as well,” conclued Hirst.

The post Macquarie Data Centres upkeeps data sovereignty in Australia appeared first on Tech Wire Asia.