8 in 10 APAC companies to expand their data centers

Summary:Security and disaster recovery are the top factors behind the rising demand for datacenter expansion in the next two years, according to a Digital Realty study.

SINGAPORE--An increased demand for security is the main driver for data center expansion plans in Asia-Pacific, according to a Digital Realty Trust's survey. 

Citing the company's annual Asia-Pacific Data Center Demand survey, Michael Foust, CEO of Digital Realty, said 83 percent of respondents indicated they planned to expand their data centers in either 2013 or 2014 with security as the primary reason. He was speaking to ZDNet Asia in an interview here Friday.

The next highest-ranked reason after security was disaster recovery , Foust added.

The Web-based survey released this week was conducted by research firm Campos Research & Analysis and polled 100 IT decision makers each from Australia , Japan, Hong Kong and Singapore.

Foust noted two-thirds of respondents would rather see the data center in the country where they worked, partly because their IT teams would need easy access to the facility. The most popular target locations cited were Singapore, Hong Kong, Tokyo and Sydney.

According to the survey, the trend is toward more efficient data centers with attributes such as having less raised floor space at 1,235 square meters on average versus 1,375 square meters from last year.

digital realty survey
Security and disaster recovery were the main reasons for expansion. (credit: Digital Realty Trust)

Eyeing Japan and China expansion

Demand for datacenter space will also be driven by the ongoing consolidation drive as companies take their servers out of office areas into shared locations, said Foust. He added this was on the back of growing trends toward cloud-based applications and data analytics.

To tap on the rising demand in Asia-Pacific, Digital Realty plans to expand into new markets in the region such as Japan and China. It is already present in Singapore and Australia, while the Hong Kong facility is due to be operational by end-2013, he said.

The CEO said early-stage discussions were ongoing for a suitable local service provider in China, and likely locations would be in tier-1 cities such as Beijing and Shanghai. He added there should be a concrete strategy for expanding into China and Japan by the end of the year.

Foust pointed out growth in China was so significant that it was in a sense already a " data center hub ", except in its case, 90 percent of the traffic was domestic and only 10 percent international. "It's not like Singapore or Hong Kong , [as] it doesn't need international traffic [to scale]," he pointed out.

In Japan, the company is eyeing Osaka as its first location by year-end. Tokyo is also on the radar but it has been more challenging finding a suitable site in the capital city, he revealed.

Topics: Data Centers, IT Priorities, Servers

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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