Data Centers a Big Hit in Asia after Property Slump

With the Asian region's economies in a slowdown, investors are forced to adjust  One of the ways they found out to ride the wave is by turning to data centers, which have been attractive as secondary investments. Nikkei Asia reported that half of these investors or nearly that much have been eyeing these alternative investments.

In a recent real estate survey by Urban Land Institute and PwC, it was revealed that investors are looking at data centers as an option with greater returns.

The trend isn't only happening in the local region but data storage businesses are growing around the world, driven by the popularity of services connected to the cloud, increasing dependency on e-commerce, and video streaming. Asia, particularly, is relying on the growing use of co-sharing spaces, as well as co-location with revenues positioned to surpass that of the North America market.

One of China's big three, Alibaba Cloud, has joined the surge by launching a second data center in just 10 months. The second data center is in Indonesia, Data | Economy reported, where the first one is also located.

The Alibaba Group subsidiary is also the only global public cloud platform with a presence in Indonesia, making it available across 19 regions and in 55 zones. The two data centers, according to the company, is expected to work toward providing high connection availability and is aimed towards aiding relief efforts during times of disaster.

H. E. Rudiantara, the Minister of Communications and Information of Indonesia, said that the 'Digital Economy Vision of Indonesia' has a clear-cut direction where it wanted to go. The goal is to accelerate and improve the growth of these 1,000 startups and uplift at least eight million people from their traditional industries, which had been fishing and farming, to go into the digital age.

The data centers from Alibaba and different other such structures in the region are prime destinations for investors because of these. The trend has even started in Hong Kong, where residential property prices have skyrocketed.


Real estate companies, like Colliers, have become busy in Hong Kong, searching for existing structures to convert into data centers. Old offices discarded storage spaces, and abandoned wholesale stores are prime targets for real estate developers who are looking to join the surge of data centers as a lucrative investment engine.

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