**Vladimir Galabov**, Research Director - Cloud & Data Center
IT innovation will be ripe in Singapore as the mature cloud services market finds ways to cope with space constraints and anti-DC sentiment. Singapore’s cloud computing capacity will grow by over a third as Meta builds an 11 story, 1.8 million square foot data center.
This already huge market is showing no signs of cooling off. Demand for cloud services & ICT investment are both on the rise. Data center capacity is on track to grow by 38% in 2022 with investment from local, US and Chinese cloud and colo service providers.
Data center buildout will accelerate to compensate for land constraints in Asia gateway markets (Singapore, Hong Kong), where many submarine cables land.
Expect the cloud and data center capacity of these countries to grow several times in 2022 and 2023, as hyperscale cloud SPs build huge data centers. The three new EU hotspots will become net exporters of cloud services to Germany, France and other EU countries.
The sustainable cloud - Enterprises are increasingly seeking a method to improve, monitor and report on the sustainability credentials of their computing resources. Cloud service providers (SP) are responding with new services and features. Expect a new wave of cloud adoption.
Re-architecting IT for the next decade - The power consumption of IT equipment continues to go up to enable new computing use cases, like AI. A new interconnect technology, CXL, will enable better memory and processors pooling for improved efficiency, putting downward pressure on IT equipment growth.
Sovereign clouds - Regulatory measures centered around data privacy and sovereignty are only expected to increase, boosting the demand for secure in-country/region clouds. Expect new IT investment in countries which currently “import” their cloud and IT services.
Everything-as-a-service - From IaaS rapidly moving to on-premises data centers, cloud SPs offering more and more managed options, to Intel offering their CPUs pay-as-you-go, the as-a-service IT ecosystem will continue to evolve. New options could help enterprises cope with macroeconomic pressures.
Not In My Back Yard - A growing “not-in-my-back-yard” sentiment is increasingly visible in mature IT markets like Dublin, Amsterdam, Singapore. Expect a slowdown in data center buildout and cloud services revenue.
Tech wars and self-reliance sentiment - From China to India and the EU, the development of home-grown computing technologies is ripe. High performance computing will likely lead the charge. Expect investment in semiconductor development and local IT equipment manufacturing to grow.
Source: Omdia
Vlad Galabov Research Director – Research Director, Cloud and Data Center vgalabov@omdia.com