According to IDC, 82 percent of U.S. companies are looking to international expansion. Half of those are targeting Asia Pacific. For those companies looking to access global markets, a global data center footprint does matter. Most U.S. and Europe-based companies that colocate a data center in Asia do it from a strategic hub. Singapore is one of the best-suited Asian cities for exactly that. Here are seven reasons why.
Asia continues to be the fastest-growing region in the world, by far. The region is set to grow 6.7 percent in 2015.[i] U.S. and European countries are following that growth: Already, 82 percent of U.S. companies are looking to international expansion; half of those are targeting Asia Pacific.[ii] No surprise: Asia Pacific is the fastest growing multi-tenant data center market in the world.[iii]
For companies looking to access global markets, a global data center footprint does matter. Data sovereignty (Whose laws govern the data in a data center?) and latency (How long does it take data to travel between locations?) are two reasons why. Simon Piff, associate vice president of infrastructure research for IDC Asia Pacific explains: “Choosing a strategically correct location has become increasingly important for organizations to serve their customers across countries. Hence, the scrutinizing process has to be done very thoroughly and carefully.”
Most U.S. and Europe-based companies that colocate a data center in Asia do it from a strategic hub. Singapore is one of the best-suited Asian cities for exactly that. Here are seven reasons why Singapore is ideal for data center colocation in Asia:
1. Strategic geographic location.
Singapore is within 50 milliseconds of Hong Kong and 75 milliseconds of Tokyo – the other two major financial centers in Asia. That makes Singapore an ideal hub to serve in two ways: 1) as a strategic connector into other parts of Asia and 2) as an additional location for companies with data centers in Hong Kong and Tokyo or other cities in Asia.
2. Market maturity.
Singapore has a relatively mature data center market compared to other countries in Asia. That said, the country is an ideal gateway into some of the world’s fastest growing economies with underdeveloped data center markets, such as China, India and South Korea.[iv]
3. Low risk of natural disaster.
Among the top 30 countries for data center colocation, Singapore ranked as the fourth least at risk of a natural disaster – only three other countries had lower natural disaster risk.[v]
4. World-leading connectivity.
Singapore has the most seamless connectivity in Asia and one of the widest telecommunications networks in the world. The Singapore Strait serves as a main fiber optic artery for the region. In addition, the new Asia Pacific Gateway – 10,000 kilometers (6,200 miles) of submarine fiber optic cable – will connect Singapore, China, Hong Kong, Japan, South Korea, Malaysia, Taiwan, Thailand, and Vietnam. The cable has a total design capacity of 54.8 terabytes per second.
“The primary reason the small island nation has such an active data center market is that it has become an Internet gateway between China and the rest of the world,” explains Jabez Tan, senior analyst at Structure Research. “Now on its way to reaching a gateway status that’s on par with Hong Kong, Singapore is where international companies go to serve customers in China, and where Chinese companies go to serve customers in Europe or North America.”
– Data Center Knowledge,The Allure of Singapore, the World’s Second Gateway to China
5. World’s #1 business climate.
Singapore’s Western business-friendly legal and tax systems make it a top nation for foreign trade and investment. In fact, Singapore is the No. 1 country with the best investment potential and the second most competitive economy in the world.[vi] It is the world’s fourth most important financial center – just behind Hong Kong, and ahead of Zurich and Tokyo.[vii]
6. World’s #2 infrastructure.
Singapore ranks second in the world on its infrastructure overall (Hong Kong is first; the U.S. is twelfth) – with world-class transport, electricity, and telephony infrastructure.[viii] The country is home to the world’s second busiest shipping hub and one of the world’s top-ranked airports.[ix]
7. Low sociopolitical risk.
Singapore is one of the least corrupt countries in the world. Its consumer protection policies are progressive, and its politics are stable. The country is ranked as one of the world’s safest. As IO CEO George Slessman, who recently moved to Singapore, told Data Center Knowledge, “It’s a wonderfully organized, clean, safe place.”
There is no one right answer to the question “Where should I locate my data center?” For the reasons that I wrote about earlier this year, most companies adopt a regional colocation strategy, colocating in data centers within reasonable geographic proximity to where they do business. For companies that don’t do business in Asia, Singapore colocation probably doesn’t make sense. For companies with operations in Asia, a Singapore data center is a compelling option.
IO serves companies around the world, with colocation data centers in the U.S. (Arizona, Ohio, and New Jersey), plus a Singapore data center in Asia, and a London data center in Europe coming online this spring. Tying it all together is DCIM software that enables clients to monitor and manage their data center environments from any device, anywhere in the world. Learn more about Singapore colocation.Download the Singapore data center spec sheet (pdf).[i]World Bank[ii]IDC[iii]451 Research[iv] In 2013, China was the world’s second largest economy. India was the tenth and South Korea was the fifteenth. All three countries received data center market maturity ratings of “Emerging” by 451 Research. See Multi-tenant Data Center Global Providers – 2014.
[v]Data Centre Risk Index[vi]Business Environment Risk Intelligence and World Economic Forum[vii]Global Financial Centres Index[viii]World Economic Forum[ix] World Shipping Council and Airports Council International