Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Singapore counts among the top 10 Global Data Centre Markets

Brenda Ong • 21/01/2020
Singapore was ranked number six in the global rankings, the only Asian country to be named after the American markets of Northern Virginia, Silicon Valley, Dallas, Chicago and New York/New Jersey.

Data Centres, once a niche investment and inflexible asset for global enterprises, are now a cornerstone of the information economy. Over the past decade $100 billion has poured into the asset class, according to our Data Centre Market Comparison, a ranking of the global Data Centre markets.

The rapidly shifting data centre landscape

This significant capital inflow has been matched by an equally major technical shift, as enterprises have chosen to move workloads off premises, first to colocation facilities and more recently to a mixture of colocation and public and private clouds. This shift has caused the largest cloud platform providers – Amazon, Google and Microsoft – to become the most influential players in many markets, altering data centre sizing by a factor of 10. The 10-megawatt (MW) data centre that was impressive 10 years ago now pales in comparison to 30-MW leases now signed with increasing regularity.

Cushman & Wakefield’s study evaluated 1,162 data centres across 38 global markets, with each data centre scored across 12 weighted criteria, including:

  • Cloud availability
  • Fibre connectivity
  • Market size
  • Development pipeline
  • Government incentives
  • Market vacancy
  • Political stability
  • Sustainability
  • Environmental risk
  • Land prices
  • Power costs
  • Taxes

The speed with which the industry is shifting makes the creation of a data centre strategy a complex and daunting task.

Dave Fanning, Executive Managing Director and Leader of Cushman & Wakefield’s Data Centre Advisory Group advises that enterprises must determine what to do with their on-premises facility, which workloads to move to the cloud and how to implement a hybrid IT strategy. Developers and operators require a parcel with robust fibre and access to power as well as a thorough grasp of the permitting process and all risk factors. Investors must be able to assess the long-term potential of a data centre to hold its value and how easily it can be upgraded. All involved require access to capital and a clear understanding of objectives.

Singapore ranks in at world number six

Singapore was ranked number six in the global rankings, the only Asian country to be named after the American markets of Northern Virginia, Silicon Valley, Dallas, Chicago and New York/New Jersey.

Singapore’s undersea cables and strong business climate have enabled developers to build data centres in the last few years, although the future of its development pipeline hangs in the balance as the city state pushes forwards with plans for a 36 per cent target reduction in carbon emissions by 2030.

Future government allocation of more land to develop data centres will need to factor the pressure on its carbon footprint. Additional data centres mean additional power consumption, resulting in an increased carbon footprint. Singapore may not be the largest in terms of footprint but it is one of the highest consumers of power per capita.

The pipeline the market witnessed in 2019 will fall short in 2020 into 2021. Although the authorities have not formally put an embargo on land allocation for data centres, we cannot dismiss climate change considerations. The number of investors looking to neighbouring Malaysia, Indonesia, and Thailand to invest in data centre developments has picked up pace. Apart from the few who have invested outside of Asia (Keppel DC REIT recently bought a second data centre in Frankfurt in January 2020), most investors will be looking to Asia for green field sites and source for brownfield sites in the Americas and EMEA.

Singapore will continue to score well in cloud availability and fibre connectivity. Faster, denser fibre generally allows for the lowest latency and better network reliability when functioning with major cloud services. Singapore’s robust fibre network will enhance its position as a regional hub supporting the storage of data that is generated in mega cities nearby including Jakarta.

To find out more about global data centre trends and investment opportunities, check out our Data Centre Market Comparison report.

Related Insights

Singapore
Insights • Insights

Commentary On Q2 2022 URA Real Estate Statistics

New sales volumes picked up in Q2 2022 with 2,397 units transacted, 31.3% q-o-q higher than that in the preceding quarter given robust sales performances at major new launches.
Xian Yang Wong • 29/07/2022
istockphoto-2022-cardimage-Policy--Watch-SG
Insights • Investment

Cushman & Wakefield's Comments On Ura May 2022 Developer Sales

On the back of more launches in May, developers sold 1,356 new private homes (excluding ECs) last month – the highest monthly volumes since November 2021 when 1,547 new units were sold.
Xian Yang Wong • 15/06/2022
istockphoto-2022-cardimage-Policy--Watch-SG
Insights • Investment

Policy Watch Singapore: Budget 2022

Over the last two years, the Singapore Government dedicated a total of close to S$100 billion to combat the impact of Covid-19. 
Xian Yang Wong • 21/02/2022

Related Stories

Dexcom Philippines New Office Fit-out Project
Dexcom Philippines • Healthcare
Learn More
Cushman & Wakefield Stories
Booking.com Philippines Inc. • Travel
Learn More
Cushman & Wakefield Stories
OMD Philippines • Advertising
Learn More
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS