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CapitaLand Investment launches research paper on ‘Asia Pacific Data Centre Investment Strategies in the Age of Digitalisation’

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 Strong secular tailwinds drive investors’ interest in the region’s sector

SINGAPORE, July 5, 2024 /PRNewswire/ — CapitaLand Investment (CLI) has launched its latest research paper on investment strategies for Asia Pacific’s (APAC) data centre (DC) industry as part of its ‘Perspectives’ research series.  Leveraging insights from CLI’s expertise on the ground, the research paper highlights the demand drivers behind the rapid growth of DCs in the region and strategic investment considerations for investors. The paper also includes a case study on navigating India’s DC sector.

Ms Michelle Lee, CLI’s Managing Director, Private Funds (Data Centre), said: “Digitalisation is a global mega trend driving the growth of data centres. With the DC sector’s strong secular tailwinds, 97% of institutional investors plan to increase their capital allocation into the sector1, particularly in Asia Pacific. As DCs are more resilient, allocation to this asset class can be an integral part of investors’ portfolio diversification strategy.”

“CLI has accelerated our growth in the DC sector, adding 22 DCs since 2021. Today, we have 27 DCs with about US$4.5 billion assets under management and more than 800 megawatts (MW) in gross power across eight countries globally2.  CLI has vertically integrated DC capabilities spanning across design, development, sales, and operations. With DC domain capabilities, combined with our deep market knowledge, deal-sourcing and investment network in Asia, we are well-positioned to partner with investors to tap into the wealth of opportunities in the sector,” added Ms Lee.

APAC as a strong growth market

While cloud computing has been the primary driver for DC demand, the rise of artificial intelligence (AI) is now fuelling a more explosive growth. The revolution in the scale at which data is being used and managed is fundamentally a global phenomenon, but nowhere is it unfolding as rapidly as in APAC markets. On population per MW basis, APAC markets are underserved compared to regions such as EMEA and North America3.

APAC economies are not only growing faster, the region’s enormous population and swelling internet user base also cement its status as a highly attractive destination for DC investment. Its internet user base has grown seven-fold since 2005, compared to the growth of 1.9 times in the Americas and 1.8 times in Europe over the same period4. Going forward, APAC markets should continue to lead, as internet adoption further increases given the lower penetration rates in the region.

DC transactions in APAC rose about 2.4 times to approximately US$22 billion from 2019 to 2023, compared to the preceding five years, even as markets generally stagnated during the COVID-19 pandemic5.

While hyperscalers continue to drive DC demand, APAC colocation market is also expected to double in size to US$52 billion by 20266, becoming the world’s largest colocation DC market.

Key DC markets in APAC

Tokyo, Osaka, Seoul, Singapore and Sydney are key developed DC markets in APAC7. These markets have achieved scale and are important DC hubs in the region.

Beijing and Shanghai also show promise due to China’s large population, growing digital services sectors, strong government support, and robust long-term economic prospects. 

Increasing demand for DCs in India

Highlighting India as a hotspot for DC investment, Mr Sanjeev Dasgupta, CLI’s CEO for India, said: “India’s DC industry has seen increasing interest from institutional investors and has a long runway for further growth. India has the world’s second highest number of mobile subscribers and one of the fastest growing data consumption per user rates. The government’s digitalisation drive, data localisation regulation as well as the growth of cloud and AI will generate more demand for DC capacity. With CLI’s 30 years of experience in India, we have the capabilities and a deep understanding of the local market. We have a dedicated team of DC experts in India and are currently developing four DCs across the key markets of Mumbai, Bengaluru, Chennai and Hyderabad with a total gross power of 244 MW.”

The seven major cities in IndiaMumbai, Bengaluru, Chennai, Hyderabad, Delhi NCR, Pune, and Kolkata – are the focal points for new DC development, offering strategic locations with proximity to key business centres. Mumbai stands out as the preeminent hub, hosting more than half of the country’s DC capacity8 with the other major cities mentioned developing strongly.

Opportunities and strategic considerations

Different DC models offer a spectrum of options for investors, catering to different preferences and risk appetites. However, the lack of stabilised DCs available for sale in APAC means the most promising opportunities for investors lie in developing new DCs – a strategy that can both satisfy new demand and yield higher returns.

Power availability has taken centre stage as a crucial determinant for DC locations. There is also a growing emphasis on sustainability. Increasingly, DC users and savvy operators are seeking to reduce their carbon footprints by being more energy-efficient and tapping renewable energy sources.

Investors should also be mindful of the geopolitical, regulatory and technological risks associated with DC investments. It is therefore crucial for investors to collaborate with DC partners who have a strong network, local expertise, and specialist domain knowledge.

To read the full research paper on DC investment strategies in APAC, visit: https://www.capitaland.com/global/en/about-capitaland/newsroom/Perspectives/2024/Apac_Data_Centre_Investment_Strategies_Age_of_Digitisation.html

Launched in 2022, Perspectives is CLI’s series of thematic and topical research reports aimed at providing proprietary insights on real asset investment trends and strategies, private equity developments, macroeconomy and markets. For more, visit:
https://www.capitaland.com/en/investment/news-and-events/perspectives.html

[1] 2024 Global Data Centre Investor Sentiment Survey, CBRE.

[2] Includes data centres in operation and under development.

[3] The World Bank, United Nations, CBRE, CLI PERA Research, June 2024.

[4] ITU World Communication, CLI PERA Research, June 2024.

[5] MSCI, Real Capital Analytics, CLI PERA Research, June 2024.

[6] CBRE, CLI PERA Research, June 2024.

[7] CBRE, Cushman & Wakefield, DC Byte, CLI PERA Research, June 2024.

[8] Avendus, “DCs: Powering Digital India”, May 2023, DC Byte, CLI PERA Research, June 2024.

 

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Huawei Launches Over 20 All-New Xinghe Intelligent Network Offerings to Amplify Industrial Intelligence

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SHANGHAI, Sept. 21, 2024 /CNW/ — During HUAWEI CONNECT 2024, Leon Wang, President of Huawei’s Data Communication Product Line, announced more than 20 all-new Xinghe Intelligent Network offerings globally at the summit themed “Xinghe Intelligent Network, Amplify Industrial Intelligence”. These purpose-built offerings contribute to an AI network ecosystem and help customers seize opportunities for intelligent development and maximize intelligent productivity.

With the development of AI technologies, the world is advancing from digital transformation to intelligent transformation. All industries are quickly adopting AI technologies to create new use cases, for example, self-driving cars, intelligent diagnosis and treatment, and intelligent train inspection. All of these are significantly improving the efficiency and experience of our work and daily lives.

The advent of the intelligent era is driving networks into intelligent ones. Huawei has been making joint efforts with partners to lead research and practices of intelligent networks. That’s why Huawei constantly upgrades its Xinghe Intelligent Network offerings to help customers grasp opportunities for intelligent development, build new intelligent network infrastructure, and maximize intelligent productivity in the intelligent era. Key highlights include the following:

Xinghe Intelligent Campus focuses on AI-enabled, experience-centric campus network construction, ensuring zero freezing for audio and video applications, zero degradation on services, and zero waiting for interactions.Xinghe Intelligent WAN introduces a wide range of intelligent technologies to intelligently schedule millions of flows and precisely optimize service experience.Xinghe Intelligent Fabric adopts the AI Turbo engine to improve network throughput, enhancing foundation model training efficiency.Xinghe Intelligent Network Security integrates AI technologies into network security detection, accurately and rapidly identifying threats.

To support network solutions in various scenarios, Huawei released more than 20 featured offerings globally. Examples include the industry’s first 100 Tbps fixed-form Ethernet data center switch, the industry’s first 51.2 Tbps liquid-cooled fixed-form data center switch, the industry’s first AI router, high-quality 10 Gbps campus switches and Wi-Fi 7 APs, Intelligent SASE Branch Security Solution, and the industry’s first IP Autonomous Driving Network Solution. All these offerings are designed to help customers with greater business returns.

As the intelligent era calls for intelligent networks, Huawei will continue to drive the development of intelligent networks and upgrade its Xinghe Intelligent Network products and solutions, ultimately helping global customers to stride towards the intelligent era and reap more benefits.

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SOURCE Huawei

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HUAWEI CONNECT 2024 | Huawei Unveils the Brand-New Xinghe Intelligent Fabric Solution, Powering the AI Era

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SHANGHAI, Sept. 21, 2024 /PRNewswire/ — At HUAWEI CONNECT 2024, over 300 industry leaders, experts, and scholars gathered for the data center network session themed “Xinghe Intelligent Fabric, Powering the AI Era.” The event featured discussions on the evolution and technological advancements of data center networks. During the session, Arthur Wang, President of Data Center Network Domain at Huawei’s Data Communication Product Line, introduced the newly upgraded Xinghe Intelligent Fabric solution. This cutting-edge solution aims to establish a data center network characterized by one map for intelligent operations and maintenance (O&M), one network for diverse computing, and one platform for simplified deployment, providing a robust network infrastructure to support enterprises’ digital and intelligent transformations.

In his keynote speech, Arthur Wang outlined the emerging trends in data center network development. He emphasized that in the AI era, data center networks require both a “brilliant brain” and “resilient bones.” The newly launched Xinghe Intelligent Fabric solution is designed to deliver a powerful network infrastructure tailored for the AI era, featuring:

One Map for Intelligent O&M: Zero Management Concerns

Huawei’s exclusive network digital map enables rapid cross-data center and cross-vendor fault identification within minutes. Additionally, the NetMaster network large model facilitates AI-driven O&M, eliminating manual intervention and ensuring zero management concerns.

One Network for Diverse Computing: Zero Service Interruptions

The Xinghe Intelligent Fabric supports various application scenarios, including intelligent computing, general-purpose computing, and storage. The innovative Network Scale Load Balancing (NSLB) algorithm increases network throughput to 95% and boosts AI training efficiency by over 10%. With the exclusive iReliable three-level fast switchover capability, it achieves sub-millisecond switchover, guaranteeing zero service interruptions.

One Platform for Simplified Deployment: Zero Configuration Errors

By employing digital twins to simulate networks in advance and verify configurations post-deployment, the solution ensures 100% accuracy in network changes. By harnessing network-security convergence capabilities, AI creates an intelligent security matrix to analyze millions of security policies, achieving zero configuration errors.

Looking ahead, Huawei will continue to collaborate with industry partners to enhance research and innovation in data center networks, promote intelligent upgrades, and create greater value for the industry.

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SOURCE Huawei

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Cultivating a Culture of Peace: International Day of Peace Statement by Education Cannot Wait Executive Director Yasmine Sherif

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NEW YORK, Sept. 21, 2024 /CNW/ — The longing for peace transcends time, geography and religion. Based on justice, human rights and universal values outlined in the UN Charter, a culture of peace brings us all together in our common agenda for humanity. We can only co-exist by aligning ourselves with such a world order.

On today’s International Day of Peace, we call on world leaders to end conflict and embrace a culture of peace as enshrined in the UN Charter and related international law.

As the UN General Assembly outlined in the Declaration and Programme of Action on a Culture of Peace  a quarter of a century ago, this must include: “Respect for life, human rights and fundamental freedoms; the promotion of non-violence through education, dialogue and cooperation; commitment to peaceful settlement of conflicts; and adherence to freedom, justice, democracy, tolerance, solidarity, cooperation, pluralism, cultural diversity, dialogue and understanding at all levels of society and among nations.”

Educating for peace starts at home and continues in school through years of education. This takes place during the most formative years of a child learning about their identity, ethics, values, conscience, courage and compassion. Wherever there has been a failure in imparting on children the imperative for peace, the world is turned upside down. This is a global failure with no geographical boundaries.

Today, we live in a world of unprecedented violence, armed conflict and chaos. All the genuine and heartfelt commitments made in 1945 in the UN Charter seem to be fading away. Children and adolescents are the most vulnerable, the least protected, and the most impacted. They bear the brunt. 

Global conflicts killed three times as many children in 2023 than in the previous year, according to the United Nations. The number of forcibly displaced people reached an unprecedented 120 million in May 2024.

“In 2023, the United Nations verified a record 32,990 grave violations against 22,557 children in 26 conflict zones, a 35% increase from the previous year,” according to recent analysis by the UN.

We can end these violations and invest in a constructive co-existence globally. We can use our resources for education, rather than for wars. In classrooms around the world, girls and boys who have withstood the wrath of war can rebuild their hopes and their lives. Cultivating a culture of peace is possible. The financial resources exist. The choice as to how we use them is ours.

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SOURCE Education Cannot Wait

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