Asia Data Centre Market Update

March 2024

With demand for data centres across Asia at an unprecedented level, it is no surprise that a recent report predicted the Asia-Pacific data centre market to grow to a whopping $54.67 billion (USD) by 2028 from its current value of $30.43 billion (USD), with a compound annual growth rate (CAGR) of 12.43%.

As part of this growth, data centre organisations are focusing on their digital transformation efforts extensively, for example, leveraging data/tech to streamline operations, enhancing efficiencies, and delivering innovative products/services. This digital transformation requires significant change to current tech, processes etc. and as such, a review of the talent required to facilitate this change is recommended. 

Recruitment opportunities

Deepa Shahani, a data centre recruitment specialist in First Point Group’s Hong Kong office, said “From speaking with senior management within the data centre community, recruitment is front of mind currently. In the past, data centres were mainly in tier 1 cities, but now we are seeing more growth in tier 2/emerging cities including Malaysia, Indonesia and Thailand. There is a real demand for more localisation of data centres. As such there is a talent shortage in APAC with data centres battling for top talent.”

For hiring managers there is an obvious recruitment challenge. However, for candidates now is a great time to explore opportunities. If you're an employee you're in a strong negotiating position. It’s very much a candidate-driven market, with candidates potentially receiving multiple job offers. 

Other notable points about the Asia Data Centre market

Deepa pointed out that “In Singapore, data centre organisations are facing a shortage of land to build data centres. Couple that with demand for data centres in the region and Singapore reportedly being the most expensive place to build data centres in Asia (an 8% increase as of November 2023), presents Singapore with a particular unique set of challenges! 

It’s worth noting that data centre organisations are also focusing on their sustainable efforts / renewable energy efforts.  Now is a great time to be involved in the Asia-Pacific data centre market, whether you’re a candidate or an organisation. The opportunities are plenty and exciting times are ahead. 

If you’d like to know more about recruitment within the data centre market, contact Deepa here.

December 2024

The global data centre industry has been experiencing notable growth in recent years, driven by the increasing demand for digital services, cloud computing, and data storage. As data centres continue to expand, there is a growing need for skilled professionals to support this growth. In this blog, I touch upon the growth of the data centre market and how First Point Group can play a crucial role in recruitment to meet the industry's talent demands.

The Booming Data Centre Market

According to the latest market report by IndustryARC , the global data centre market is on a rapid growth trajectory, with the industry expected to reach a staggering value of $418 billion by the year 2030. This remarkable expansion is projected to occur at a steady compound annual growth rate (CAGR) of 9.6% during the forecast period from 2023 to 2030.

Several key factors are driving this significant growth in the data centre market. One of the primary drivers is the increasing trend of digital transformation across various industry verticals. As businesses worldwide embrace digital technologies to stay competitive and meet evolving customer demands, the demand for robust data centre infrastructure has surged.

The growth of internet data traffic is another driving force behind the market's expansion. The increase in usage of smartphones, IoT devices, and the adoption of cloud computing solutions have led to an unprecedented surge in data generation and transmission. Data centres play a pivotal role in processing, storing, and managing this massive volume of data, making them indispensable in today's digital age.

The adoption of hybrid cloud architecture and the growing demand for multi-cloud solutions have added momentum to the data centre market's growth. These trends reflect the need for flexible and scalable infrastructure to support diverse IT workloads and applications.

Potential Challenges

However, it's important to note that the growth of the data centre market also faces challenges, particularly in the realm of data security. With data breaches and cyber threats becoming more prevalent, ensuring the security of sensitive information within data centres remains a critical concern for organizations.

Additionally, the energy consumption of data centres is a notable environmental concern. The emergence of green data centres, designed to operate efficiently and sustainably, is expected to mitigate some of these environmental impacts. Green data centres aim to reduce their carbon footprint by using renewable energy sources and implementing energy-efficient technologies.

Adding Value with First Point Group

First Point Group, a leading recruitment agency specializing in the telecommunications and technology sectors, can be a strategic recruitment partner for organizations within the data centre market. Here's how we can add value to your organization:

• Product/Innovation Strategy: We can help you find top talent with the expertise to develop, design and build cutting-edge data centres, as well as recruiting skilled professionals to maintain the data centre. This will help to ensure your customers are happy and you remain competitive and revenue-generating.
• Growth/Marketing Strategy: In a rapidly growing market, expansion and strategic partnerships are essential for success. We can identify professionals experienced be it technical or sales to assist you in business expansion.
• Competitive Strategy: Understanding your competition is key to thriving in the data centre market. We can conduct comprehensive competitive salary benchmarking to help you gain insights into how your organization compares against your competitors.

In conclusion, the global data centre market is poised for substantial growth, driven by the relentless pace of digital transformation, the surge in data traffic, and the need for robust and scalable infrastructure solutions. As businesses continue to rely on data-driven operations, the role of data centres in supporting their IT needs will remain pivotal in the years to come. 

If you would like to discuss data centre recruitment, contact Christopher Lamb.

Sources:

• https://finance.yahoo.com/news/global-data-centre-cooling-component-091800007.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAAf0l3OiH9QMh81urRl3raLiN2HJ4nzQ68zH5DAhtjaz6dFUJiudOg9FC3X9LTn1LgidiG6C5CIs77pmtK9exwY5U67zVoSR5g0vj5l2AFLmGfY5eaW8jtm3R5zWpGNBCErectYyR3DsOcgYiPZE_EGfq1TwjeSiA_k1_K0s6cEG
• https://www.prnewswire.com/news-releases/middle-east-and-north-africa-data-centre-market-investment-to-reach-8-38-billion-by-2028---arizton-301995029.html 
• https://www.businesswire.com/news/home/20231110885821/en/Europe-Data-Centre-Market-Insights-Report-2023-2028-Market-is-Ripe-with-Opportunities-Driven-by-Technological-Advancements-and-Evolving-Customer-Needs---ResearchAndMarkets.com
• https://www.businesswire.com/news/home/20230810740711/en/Europe-Hyperscale-Data-Centre-Market-Outlook-Report-2023-2028-Featuring-Leading-Investors---Microsoft-Google-and-Meta---ResearchAndMarkets.com#:~:text=The%20Europe%20hyperscale%20data%20centre,5.72%25%20from%202022%20to%202028
• https://www.researchandmarkets.com/report/data-centres
• https://www.prnewswire.com/news-releases/data-centre-market-size-worth-418-billion-by-2030--at-a-9-6-cagr-industryarc-301731459.html