By Hosting Guru
As the NBN continues to roll out across Australia preparing us for the next evolution of the digital age and cloud computing, the pace of growth of data centres across Asia Pacific continues to increase. Frost & Sullivan are predicting 14.6% growth in Data Centre Capacity across Asia, generating revenues exceeding $10 billion by the end of this year.
Australia together with Japan, Singapore and Hong Kong are leading the growth, with internet media, telecom and IT industries accounting for up to 45% of the demand according to their research. I know from first hand experience with the competition in the local market, that there is a massive investment in facilities going into Australia, with more than half a billion dollars of investment in facilities over the next 2 years in Australia alone.
Much of the 1st stages of that increased capacity are coming online in the next 6-12 months in Sydney, Melbourne, Adelaide, Perth and Brisbane from the likes of Global Switch, NextDC, Equinix, Digital Reality Trust, Fujitsu, NTT, Pacnet, HP, Macquarie Telecom, Telstra and several tier 2 providers. Even the big international players want in on the action in Australia over the next two years. After cautiously examining the market for the last few years Rackspace, Google, Microsoft, Savvis and others are looking at opportunities to establish a local DC footprint with foundation customers.
We havent seen IT data centre infrastructure investment like this since the last DC frenzy back around Y2K, with many of those operators going broke, and some facilities changing ownership several times before turning a profit.
Lets hope our politicians and financial markets navigate a way through this latest economic turmoil to ensure we don’t see a repeat of data centres sitting empty for 5 years, just like during the dotcom bubble burst not that long ago. With the economic pressures, cloud computing and the maturity of virtualisation and consolidation all reducing the need for more capacity, do we really need this much investment in capacity?
Sure we need newer more efficient facilities but I think you will see some players that haven’t already broken ground and made the initial investment, perhaps sit back and wait a little longer to see the dust settle on the economy. Unless I had significant pre-sold or comitted capacity from foundation customers, in this market, I wouldn’t be sinking the tens of millions of dollars needed to build, especially with the glut of capacity that’s about to come on the market. Your thoughts?
By Hosting Guru