High Competitive Intensity in Singapore's Data Center Colocation Services Market
Service Providers to Develop Energy-efficient Data Centers to Enhance Their Technology Strategy Roadmap
To increase their presence, hyperscale cloud service providers, such as Alibaba, Microsoft, and Amazon Web Services, along with the local cloud vendors, are expanding their infrastructure, operations, and availability across Singapore. With the extensive penetration of Internet connectivity, as well as a keen focus on cybersecurity and data privacy, the demand for data storage and managed hosting services is expected to grow exponentially across the country.
The demand for wholesale colocation from global cloud service providers will drive data center services revenue growth in Singapore. Singapore's data centers market is considered to be one of the primitive data center markets in the world. However, it is poised to experience exponential growth, due to increasing demand for hyperscale colocation services, strong value proposition for data center services providers to address the regional demand, and digital transformation among enterprises accelerating demand. The Singaporean market is expected to be highly competitive in the near future, due to existing and new participants entering and enhancing their data center services.
The Government of Singapore is focusing on improving the readiness of the country to support hyperscale data centers by enhancing telecommunications and network infrastructure. As the demand for data centers services is rising, service providers are adopting innovative solutions such as data center infrastructure management, data center modernization, and edge or modular data centers to optimize operational workloads and enhance service delivery by limiting latency-related issues to create significant competitive differentiation in the market.