Hong Kong, Singapore, Sydney, and Tokyo have a lot of things in common--they are preferred locations for data centers. The reason for that lie in the robust infrastructure the region enjoys as well as data connectivity and how easy it is to do business in the region, World Property Journal reported.
Companies have been looking for ways to save on overhead costs and one of those means to rent facilities rather than put up one of their own. The Asia Pacific is host to a lot of these data centers, and this also means that business in the sector is about to boom. To date, 40 percent of global share by 2020 will be located in the region. This value is good enough to show how the region will eventually overtake the US in this area of business.
Despite the number of these data centers, the region is experiencing an upheaval in the data sector. Various digital products, services in data processing, as well as e-commerce benefited from the Asia Pacific's boom in population. Cloud providers such as Amazon, Alibaba, Google, and Microsoft are gearing up to answer the challenge of cloud migration. This is in response to the surge of data that's been ongoing since the population has begun to rely heavily on digital products data and services located on the Web.
This has led to real estate in the area being used for data centers, large infrastructure built with the sole purpose of housing miles and miles of computer systems. There was one such instance that SCMP pointed out, where Google was supposed to have been building something in the Tseung Kwan O Industrial Estate in Hong Kong. The project was worth US$300 million when, citing 'lack of land for expansion,' it was abandoned.
That, however, is of little concern. Hong Kong is projected to become a major ground of hosted cloud servers and data centers. Companies from China--the group of Alibaba Group Holding, Baidu, and Tencent Holdings--are still expanding and eyeing clients from various parts of the world. This, in turn, requires massive centers to store their data and, in the case of Alibaba, anyone else's.
With the progress of this scale, it's only practical for other operators and investors to continuously look for areas for possible locations of these centers. Already, these investors are looking beyond the major players--Hong Kong, Singapore, Sydney, and Tokyo--for putting up their data centers.