Data centres are foundational to progress in the age of digitalisation. The ongoing digital transformation—so important to people’s way of life and the business landscape alike—finds its pulse in these structures.
Today, data centres are not merely repositories of data. Rather, they serve as the lifeblood of modern-day life, shaping our daily interactions with the digital world—from mobile applications that power our lives to e-commerce platforms, content streaming, and access to cutting-edge technologies of artificial intelligence, virtual reality, and cloud services. Each of these services hinges on vast amounts of data being processed in real-time, with the consumer’s expectation for ever-decreasing latency, reinforcing the undeniable connection between data and the digital realm.
Kei Furuta, President and Chief Revenue Officer at Digital Edge, emphasised in an exclusive interview with Data and Storage ASEAN how recent research predicts global data creation to soar beyond 180 zettabytes by 2025—a staggering testament to the unparalleled growth of information in our digital era.
Furuta further highlights a 28% surge in global internet bandwidth in 2022, marking a steady return to pre-pandemic levels after the upheaval it caused in 2020 and most of 2021. These statistics underscore the undeniable importance of data centres, which form the critical junctions that seamlessly navigate the surging waves of digital information.
In the aftermath of the global pandemic, the significance of data centres intensified exponentially. As remote work became the new norm, individuals generated an unprecedented volume of data while demanding greater accessibility, resulting in a surge in data centre demand. Asia, in particular, saw its Internet penetration rate rise to 67.4% in 2022, more than doubling over a decade and fuelling the region’s digital transformation.
Furthermore, soaring demand from global hyperscale cloud providers, who rapidly embraced digital services during the pandemic, added to the growing importance of data centres. Furuta cites Gartner’s latest forecast that projects a 20.7% growth in worldwide end-user spending on public cloud services, which is further set to reach a staggering USD $591.8 billion in 2023 from USD $490.3 billion in 2022. This escalating demand necessitates the expansion of data centre capacities to ensure seamless access to digital infrastructure and meet global hyperscalers’ international standards.
Navigating the Data Centre Choice
Enterprises often find themselves faced with a myriad of choices in terms of which digital infrastructures to utilise, as each presents its own set of advantages and challenges. As such, the decision to opt for on-premises data centres or embrace cloud storage becomes a crucial one, hinging upon the unique nature of one’s business, as well as its aspirations and pressing needs.
At the heart of this choice lies the fundamental distinction between the physicality of on-premises data centres and the ethereal nature of cloud storage, where data is seemingly stored in a non-existent physical space.
On-Premises Data Centres vs Cloud Storage
As businesses navigate this critical decision-making process, it is vital to take a number of considerations into account before deciding on which option to take—stick with an on-prem data centre or opt for the cloud.
In this case, the most important considerations to factor in include deployment model, cost structure, data control, security, and compliance.
One key advantage of on-premises data centres is that it lets you meet the global trend of data sovereignty regulations. For certain organisations that handle sensitive information, such as public sector groups and financial institutions, there is oftentimes a law-mandated requirement to ascertain the exact location of their data to comply with stringent guidelines. And, in most cases, data in this case needs to be stored wherever the organisation is operating. In such scenarios, utilising an on-prem data centre will prove advantageous, as the organisation knows exactly where the data is being stored and can, thus, comply with relevant data laws.
For cases where data sovereignty concerns are not necessarily a main consideration, cloud storage might prove to be a more sensical choice owing to the flexibility, cost-efficiency, and scalability the cloud provides. Another option would be to deploy a hybrid strategy that leverages both an on-prem data centre and the cloud.
Whatever the case may be, a data centre needs to ensure security and data privacy—and this requirement, according to Furuta, makes Digital Edge’s ISO 27001-certified data centres an ideal hub for enterprises seeking to explore hybrid deployment models, combining on-premises solutions with the agility and scalability of the cloud.
Colocation vs Self-Built Data Centres
The choice between colocation and self-built data centres presents another intriguing avenue for companies to explore. Scale, usage patterns, and investment capacity are the critical factors insofar as deciding between colocation or self-built data centres. Establishing a cutting-edge, self-built data centre necessitates substantial capital investment and long-term maintenance commitments, and these make this option more viable for larger, more established companies with expansive resources.
In contrast, colocation might be the logical choice for businesses seeking to strike a balance between capacity needs and risk management. The case for colocation lies in its ability to let a business upscale or downscale as required, without assuming the full burden of operating a dedicated data centre or the accompanying need for highly skilled personnel.
But, in order to do that, colocation needs connectivity and collaboration—two things Digital Edge offers.
“Digital Edge’s carrier-neutral colocation data centres present a rich ecosystem, enabling seamless connections with service providers and opening doors to a broader digital realm,” said Furuta. “Within these interconnected spaces, enterprises can thrive, forging alliances and optimising their digital strategies with ease.”
Paving the Path to Sustainable Data Centres
Companies looking to leverage data centres might also want to consider partnering up with data centre providers who are doing their part in implementing sustainable data centre practices.
That’s because the data centre industry, like all other industries, also grapples with the challenge of sustainability given its energy-intensive operations. The industry is responding accordingly, according to Furuta, as data centre providers are demonstrating more and more an increasing willingness to create greener data centres—and Digital Edge is at the forefront of it.
“Digital Edge leads the charge [in sustainability] by prioritising energy efficiency, ensuring our new build data centres aim for a peak PUE (Power Usage Effectiveness) of 1.3 or less,” noted Furuta, who also pointed out how Digital Edge is currently embracing cutting-edge technologies like the StatePoint Liquid Cooling (SPLC) system in order to achieve impressive PUE ratings in demanding climates like the Philippines, for instance.
True sustainability, however, extends beyond energy efficiency, as it encompasses every aspect of data centre design, construction, and operation. Digital Edge, in its second ESG Report, outlined its commitment to being a carbon-neutral data centre organisation by 2030—and it aims to do so by focusing on green building standards, renewable energy sourcing, and partnerships with vendors sharing similar ESG goals.
Digital Edge: A Trailblazer in the Data Centre Sphere
It goes without saying that Digital Edge has emerged as one of the trailblazers in the data centre landscape as it strives to transform digital infrastructure in Asia. What makes it a trailblazer, according to Furuta, are its three core USPs:
- Asia-focused expertise: Digital Edge boasts a management team of diverse nationalities speaking multiple languages and uniquely understanding the dynamics of the Asian data centre industry. Partnering with local entities ensures success in catering to each market’s nuances.
- Genuine carrier-neutrality: The company’s data centre platform accommodates both retail and high-power density hyperscale deployments, drawing multiple customers into a thriving digital ecosystem.
- ESG at the heart: As a young and agile company, Digital Edge embraces sustainability from the outset, adopting innovative technologies to deliver a greener, future-proof data centre platform.
Furuta envisions a future where the demand for digital infrastructure will continue to grow exponentially. Digital Edge is primed to meet this rising demand across Asia with its unwavering commitment to expansion and providing customer-centric solutions. Since its launch in 2020, Digital Edge now boasts 17 data centres across 6 markets, with ambitious plans to reach a 500+MW platform in the next five years.
As the digital landscape continues to evolve, data centres will remain integral to progress in this digital, data-driven world. And companies like Digital Edge are leading the way towards a future in which data drives companies forward and innovation knows no bounds.
