Sydney and Singapore break into global top 5 markets
The study evaluated 1,189 data centers around the world, using a weighted methodology to rank 48 global markets to arrive at the overall top ten.
In an unexpected shake-up, both Sydney and Singapore have broken into the global top five this year, with Sydney climbing three positions to place third, and Singapore rising by one place to come in fifth. The rest of the top five are US markets, with West Virginia (unsurprisingly) taking the number one spot, Chicago coming in second, and Silicon Valley in fourth.
“Asia Pacific markets continue to perform well as data center destinations given its overall growth potential and the rapid development of technology platforms and networks across many of its markets,” commented Todd Olson, Cushman & Wakefield’s APAC Data Center Advisory Group Leader, in a statement to the press.
“As e-commerce continues to flourish and cloud connectivity becomes a primary business driver, we expect the data center market growth to intensify in the region with secondary markets gaining prominence and new markets emerging in this space.”
Both Sydney and Singapore’s success this year is thanks in part to the COVID-19 crisis, which has of emerging markets, and foreshadows a trend that Cushman & Wakefield expect to continue over the coming decade.
“ as companies . Continuation and optimisation of this shift will continue throughout the next several years, creating further emphasis on cloud services availability and connectivity across platforms,’ said Dave Fanning, Executive Managing Director, Data Center Advisory Group Leader at Cushman & Wakefield.
“Construction of new product has skyrocketed, with the 1.6 GW under construction across markets studied last year swelling to 2.9 GW in this year’s edition.”
The growth in edge workloads has also had a hand in pushing less centralised markets to the forefront of development, with markets like Chennai and Kuala Lumpur receiving growing interest from operators and hyperscalers alike.
Sydney’s acceleration is also thanks to a major digital infrastructure transformation being led by the australian government, and Singapore can largely thank its existing market - as an ongoing data centre moratorium has slowed construction in the country significantly.
“As other markets continue to grow, it will remain imperative for both markets to find solutions for future development, potentially through new forms of power generation or further multi-storey construction for the limited number of remaining development sites,” writes Hena Park, Cushman & Wakefield’s director for South Korea.
She adds, in a company blog post, that South Korea’s data centre is among those new markets , noting that the country’s Capital, Seoul, reached an installed capacity of 325MW last year, with a “solid development pipeline, and all major cloud services available,” driven largely by and Korea’s position as a global 5G leader.
Equinix: Digital leaders expect changes to working patterns
A global report released by Equinix has revealed that digital leaders expect long-term changes to the way people work.
As part of the report, the data infrastructure company surveyed 2,600 IT decision-makers from several different businesses spanning 26 countries in the Americas, Asia-Pacific and EMEA regions. The study also highlighted the biggest technology trends affecting global businesses and how the COVID-19 pandemic has impacted digital infrastructure plans.
Talking about companies’ expansion strategies, Claire Macland, Senior Vice President of Global Marketing at Equinix, said: “Many companies are now investing more in their digital infrastructure to enable them to embrace a hybrid working model and thrive in the new world of work we all find ourselves in.
“Despite headwinds in many sectors, many organizations are continuing to expand physically and virtually into new markets and regions around the world”, she said.
The report drew the following conclusions:
- 64% of the 2,600 digital leaders surveyed believed there will be “long-term changes to both how and where people will work in the future.
- 57% of global companies intend to expand into new regions despite the effects of the pandemic
- 51% of businesses worldwide say they have rearchitected their IT infrastructure so that it can meet the demands of remote and hybrid working. Digital transformation has also been accelerated due to an increase in businesses’ technology budgets.
How might digital transformation be affected post-pandemic?
COVID-19 has demanded that companies make several changes to the way that they operate, including digital transformation. According to the study, 47% of those surveyed reported that they have accelerated their digital transformation plans because of the Coronavirus pandemic. A further 42% of organisations said their budgets have increased to keep up with the growth of digital transformation.
Another change in adapting to the pandemic was to businesses’ IT strategies with six in 10 companies saying that it has been revised in response to the situation. 58% said they are looking to invest in technology to “improve agility’ post-COVID.
When asked about their priorities for their digital strategy, 80% of respondents said that digitising their infrastructure was of utmost importance, while 57% viewed interconnection as a ‘key facilitator’ of digital transformation.
"This increasing focus on digitization and expansion is one of the reasons why Equinix has continued to invest in its own growth. We completed 16 new expansions in 2020—our most active build year ever—and expect to continue to evolve Platform Equinix to support our customers as they continue on their digital transformation journey”, said Claire Macland.
Potential concerns disperse over expansion plans being halted by COVID-19
The study has also revealed that organisations’ previous concerns that the pandemic will negatively affect their business expansion plans have been lessened.
57% of businesses have said that they “still have plans” to expand into new regions and of that percentage, nearly two-thirds (63%) plan to do so virtually instead of investing in physical IT infrastructure.
The full Equinix report can be found here.