Singapore has not only been a successful business hub but also a successful data center hub. Companies around the world loves to keep their data center in Singapore due to its proximity to both South Asian and South-East Asian regions. Data center, cloud or server located in Singapore can quickly serve to the users in those regions with lower latency. The Singapore Data Center Colocation Market is estimated to witness a major rise in its revenue from US$ 1,543.9 Mn in 2021 to US$ 3,586.2 Mn by the end of 2027. The market is registering a CAGR of 15.1% over the forecast period. A colocation data center often referred to as a ‘colo’, is a large data center facility that rents out rack space to third parties for their servers or other network equipment. This is a very popular service that is used by businesses that may not have the resources needed to maintain their own data center, but still want to enjoy all the benefits. Most typically, smaller companies with limited IT resources choose this option over building their own data center because it’s a cheaper option.

The market is majorly driven by factors such as implementation of green datacenter standard and development of a datacenter park in Singapore. Data centers (DCs) are extremely energy-intensive facilities, with electricity accounting for more than 50% of the operating expenditure in a typical DC in Singapore. To help reduce the energy consumption and operating costs of DCs and enhance their competitiveness, the Infocomm Media Development Authority of Singapore has partnered other government agencies and industry to develop a Singapore Standard for Green DCs. This standard is modelled after the ISO 50001 standard on energy management but is specifically tailored to meet the needs of DCs in Singapore. Further, the Singapore seeks to strengthen its position as an economic hub with the development of a Data Center Park which will attract MNCs and enterprises to set up their headquarters and premium data center operations here. This is in turn expected to propel the growth of data center colocation market.  However, the discrepancies regarding data retrieval, security, and storage management poses a challenge for market growth. 

Key Insights of the Report: 

• Latest study published by Astute Analytica analyzes the Singapore Data Center Colocation Market for the study period of 2017-2027; where historical years are 2017-2020, base year is 2021 and forecast period is 2022-2027.  
• The research report offers detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.  
• The research study is a compilation of 9 chapters distributed across 137 pages with 24 list of tables and 33 list of figures.  
• The market is segmented based on component, datacenter type, enterprise size, and industry. 
• The market estimates are presented in terms of value (US$ Mn). 
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models. 
• A detailed value chain analysis of the industry was conducted. It includes infrastructure providers, integrated service maintenance, cloud service and solutions, and end users. 
• The competitive dashboard section include analysis on the basis of Concentration Ratio (CR), based on market size and market presence of key companies.  

Key Takeaways from the Singapore Data Center Colocation Market Report:

• Based on component, the colocation data centers segment holds the highest market share in 2021 and is estimated to continue its dominance over the projection period 2022-227. This is due to the benefits provided by the colocation data centers such as lower cost, fewer technical staff, scalability, and reliability among others. Further, within the colocation data centers segment, the IT enterprise sizes segment registers the highest CAGR over the projection period. 
• In terms of datacenter type, the tier 1 type has the highest share in the Singapore Data Center Colocation Market in 2021. This is due to increasing demand of share servers from large enterprises as well as small & medium enterprises. Tier 3 & 4 segment holds the highest growth rate over the projection period. 
• Based on enterprise size, the large enterprises dominate the data center colocation market of Singapore in 2021. However, the small & medium enterprises record the highest CAGR over the forecast period. This is because smaller companies with limited IT resources choose this option over building their own data center because it’s a cheaper option.
• In terms of end-use industry, the IT & telecom industry holds the highest market share in 2021 and is estimated to continue its dominance across the projection period. Further, the e-commerce segment holds the highest CAGR over the forecast period. With the growing trend of remote work locations, the demand for datacenter colocation is increasing among all end use industries. 

Competitive Landscape

The key players in the Singapore Data Center Colocation Market are Equinix, Singtel, Rackspace Technology, SunGuard Availability Services, and Keppel among others. Through extensive research, it is found that big players have adopted various competitive strategies such as product development and collaboration with companies in order to have a grip in the stabilized market scenarios.

Strategies adopted by key market players:

• Equinix has added another data center to its portfolio, with the planned build of its fifth Singapore data center, SG5, announced in December 2020. 
• In January 2019, CenturyLink launched its first security operations center (SOC) in South-east Asia in Singapore, to address the growing needs of enterprises in the Asia-Pacific region to handle cybersecurity threats.
• On April 20, 2018, Core Site Realty Corporation acquired U.S. Colo, a carrier-neutral, network-dense colocation provider, located in Los Angeles, California, for a purchase price of US$ 6.3 million, net of previously accrued legal expense.

Segmentation Overview

The following are the different segments of the Singapore Data Center Colocation Market:

By Component segment of the Singapore Data Center Colocation Market is sub-segmented into:

• Colocation data centers
• Electrical Systems
  • UPS
  • Generators
  • PDUs
  • Switches & Switchgears
  • Other Electrical Components
• HVAC Systems
  • CRAC & CRAH
  • Cooling Towers
  • Chiller Units
  • Other Components
• IT Systems
  • Servers
  • Storage
  • Network 
• General Construction
  • Building Design & Development
  • Installation & Commissioning
  • Physical Security
  • DCIM & BMS
  • Facility Management Services
• Colocation datacenter Services
• Retail Colocation 
  • 1U-10U
  • Quarter rack
  • Half rack
  • Full rack
• Wholesale Colocation 

By Datacenter Type segment of the Singapore Data Center Colocation Market is sub-segmented into:

• Tier 1
• Tier 2
• Tier 3 & 4

By Enterprise Size segment of the Singapore Data Center Colocation Market is sub-segmented into:

• SMEs
• Large Enterprises

By Industry segment of the Singapore Data Center Colocation Market is sub-segmented into:

• BFSI
• Retail
• E-commerce
• IT & Telecom
• Entertainment & Media
• Healthcare
• Automotive
• Education
• Transportation
• Oil & Gas
• Others