Data Center Services On Fire In Emerging Asia Pacific

In the last two years, Emerging Asia Pacific has attracted substantial investment in building new data centers and refurbishing existing data centers. India and China are primarily focused on domestic growth, while the Association of Southeast Asia Nations (ASEAN) will be a data center hub for the region. Forrester estimates a 22% compound annual growth rate (CAGR) for the next five years in third-party data center services. Many types of vendors are jumping into this gold rush. With competition increasing and margins getting squeezed out, vendors will have to specialize to differentiate. We expect the supplier ecosystem to evolve into two distinct breeds of suppliers — the "base-builders" and the value-added services providers.