Published on the 22/02/2010 | Written by Newsdesk
Energy-guzzling business shows no signs of slowing down, says Frost & Sullivan…
The data centre co-location and managed hosting services market in Asia-Pacific has been going strong for almost a decade, growing in tandem with the rise in business and internet subscribers.
Frost & Sullivan industry analyst, Chengyu Wu, expects this growth in Asia-Pac to continue at a compound annual growth rate of 14.6 percent with revenues exceeding US$10.68 billion by the end of 2011.
In Australia and New Zealand, growth will continue at a CAGR of 14.8 percent with revenues exceeding US$587.6 million by the end of 2011.
“Data centre hosting services are a huge, growing business – one that has remained largely insulated from the recession,” she says.
“As much as two-fifths of a company’s total energy consumption is spent on powering data centres, making the cost of maintaining captive data centres highly prohibitive.
Real estate, of course, is the other significant cost.”
Demand for data centre hosting, Wu adds, currently exceeds supply. “In fact, over 80 percent of the major data centres in Asia-Pacific are running at close to 90 percent capacity and space is at a premium.”
New analysis from Frost & Sullivan finds that the market – covering 14 Asia-Pac countries – grossed an estimated US$8.0 billion in 2009, growing 12.8 percent year-on-year.
Australia and New Zealand grossed an estimated US$446.3 million in 2009.
Revenues for the Asia Pacific are expected to rise even higher by 14.7 percent this year to reach US$9.18 billion by-end 2010, and by as much as 16.4 percent in 2011.
“Government-driven investments into next-generation broadband networks, IT infrastructure build-outs and e-ready nations have created a growing internet-savvy population that demands rich content, collaboration and web applications,” Wu explains. “This demand is the primary driver of the growth in data centre space in the region.”
She adds that the internet media, telecom and IT industries together account for up to 45 percent of the demand. These sectors are still growing at a fast pace in almost all Asia-Pac countries and are expected to continue to be the biggest users of data centre space over the next four to five years.
