New Delhi, Aug. 12, 2024 (GLOBE NEWSWIRE) -- According to Astute Analyica, the Cambodia data center colocation market is projected to hit the market valuation of US$ 415.56 million by 2032 from US$ 156.42 million in 2023 at a CAGR of 12.3% during the forecast period 2024–2032.

Data center colocation in Cambodia is experiencing a robust growth trend, driven primarily by the country's strategic positioning in Southeast Asia and an increase in digital transformation efforts. With internet penetration in Cambodia having reached over 10 million users and mobile subscriptions surpassing 20 million, the demand for reliable and secure data storage solutions is escalating. Notably, the Cambodian government’s investment of $100 million in digital infrastructure in 2023 has further accelerated this trend. The rise of cloud services, with over 500 enterprises adopting cloud-based solutions in the last year, also contributes significantly to this growth.

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The demand for data center colocation market in Cambodia is being shaped by the rapid growth in telecommunications and IT-centric businesses. The telecommunications sector, which accounted for $1.2 billion in revenue in 2023, sees Phnom Penh emerging as the most popular location for data centers due to its developed infrastructure and robust connectivity. Additionally, Siem Reap and Sihanoukville are gaining traction as secondary hubs, supported by investments of over $50 million in IT infrastructure in these regions. The growth of e-commerce, with over 1,500 new e-commerce businesses established in 2023, and the increase in social media usage, with 8 million active users, are also substantial factors driving colocation demand.

Key Trends and Market Shaping Factors

Several key trends are shaping the data center colocation market in Cambodia. The adoption of cutting-edge technologies such as IoT and big data analytics, which saw a 30% increase in usage among Cambodian enterprises, is driving the need for advanced data center solutions. Sustainability is becoming a crucial aspect, with companies like Huawei launching three new eco-friendly data center solutions in 2023. Furthermore, the increasing volume of data from social media and OTT platforms, with over 500 million hours of content streamed monthly, is pushing the demand for colocation facilities. The market is also influenced by the global trend of edge computing, which is set to be worth $4 billion in the Southeast Asian region by 2025, necessitating data centers closer to end-users for low latency.

Key findings in Cambodia Data Center Colocation Market

Investment Outlook for Cambodia's Colocation Data Center Industry

Cambodia's data center colocation market is witnessing robust growth, driven by significant investments and strategic partnerships. The opening of ByteDC Solutions' Tier III data center in 2023, a collaborative effort between Cambodia and Singapore, marks a pivotal development in the country's digital infrastructure landscape. This facility, the first of its kind in Cambodia, underscores the region's potential as a burgeoning hub for digital infrastructure. The Cambodian government's active support through policies aimed at attracting investments and promoting competition has been instrumental in this growth. Additionally, the groundbreaking of Kepstar Data Centre Management's Tier III facility in 2022 further highlights the country's commitment to enhancing its digital ecosystem. These developments are crucial for Cambodia's vision to transition into a Smart Digital Nation, providing reliable and secure data storage solutions for both government and private sectors.

The demand for colocation services in Cambodia data center colocation market is being propelled by the rapid adoption of e-commerce, online gaming, and digital media, trends that have been accelerated by the Covid-19 pandemic. The rise in AI-related demand since late 2023 has also significantly impacted the data center market, with hyperscalers and corporates increasingly moving towards colocation solutions. However, challenges such as power supply, particularly the lack of renewable energy, pose significant hurdles for future data center development. Despite these challenges, the market outlook remains positive, with global investors recognizing the lucrative opportunities in Cambodia's data center sector. Institutional real estate investors are planning to increase their capital deployment, focusing on hyperscale build-to-suits and other high-value investments. As Cambodia continues to expand its digital infrastructure, the emphasis on sustainable and scalable solutions will be key to meeting the evolving needs of businesses and supporting the country's economic growth.

The Rising Need for Colocation Data Centers in Cambodia

The demand for data center colocation market in Cambodia is experiencing a significant surge, driven by several key factors. One of the primary drivers is the rapid digital transformation across various sectors. As businesses increasingly adopt digital technologies, the need for secure, reliable, and scalable IT infrastructure becomes paramount. Colocation data centers provide a cost-effective solution by allowing businesses to share resources, thereby reducing the expenses associated with building and maintaining their own data centers. This shared model also offers enhanced security and connectivity, which are crucial for modern businesses. Another significant factor contributing to the rise in demand is the expansion of e-commerce and digital media in Cambodia. The e-commerce market in Cambodia is projected to reach $1.5 billion by 2025, up from $500 million in 2020, driven by a young and tech-savvy population comfortable with online shopping. The rapid growth of online shopping platforms and the increasing use of digital payment methods are creating a substantial need for robust IT infrastructure to handle large volumes of data and ensure seamless user experiences. Additionally, the government's initiatives, such as the Digital Cambodia framework, are fostering a conducive environment for the growth of digital businesses and, consequently, the data center colocation market.

The deployment of 5G networks is also playing a crucial role in driving the demand for colocation data centers. The rollout of 5G technology in Cambodia is expected to enhance connectivity, increase data speeds, and reduce latency, thereby supporting the growing digital economy. As 5G networks generate and transmit higher data volumes, the need for advanced data centers to process, store, and manage this data becomes more critical. This trend is further supported by the increasing adoption of artificial intelligence and edge computing, which require substantial computational power and data storage capabilities. The combination of these factors is propelling the growth of the data center colocation market in Cambodia, making it a vital component of the country's digital infrastructure.

Tier III and Tier IV Colocation Datacenters are Making Stride With Over 80.4% Market Share

The dominance of Tier-3 and Tier-4 colocation data centers in Cambodia is driven by the country's strategic focus on digital transformation and the need for reliable IT infrastructure. Tier-3 data centers, known for their redundant components and distribution paths, support Cambodia’s digital goals, as evidenced by the Cambodia-Hong Kong submarine cable link project, enhancing connectivity and regional data exchange. The local data hosting trend and the reliable power supply with dual-path fiber connectivity in the data center colocation market ensure high availability and operational efficiency. The Southeast Asia data center market, including Cambodia, is expected to grow at a CAGR of over 8% from 2021 to 2026, with the Tier-3 data center market projected to reach USD 1.3 billion by 2026. Additionally, the strategic alignment of these data centers with Cambodia's developmental goals, such as achieving economic milestones for 2030 and 2050, underscores their importance. Comprehensive security strategies, including advanced fire protection and continuous surveillance, bolster the appeal of these facilities.

The increasing demand for reliable IT infrastructure spurred the development of numerous data centers across Cambodia, with the digital economy's growth playing a crucial role. International alliances and the expansion of cloud regions by major providers like AWS, Microsoft, and Google further support this growth. As of 2024, the global data center market is expected to reach USD 105 billion, with Asia-Pacific contributing significantly. Cambodia's data center market is set to grow by 15% annually, and the average uptime for Tier-3 and Tier-4 centers is 99.982% and 99.995%, respectively. The number of internet users in Cambodia has increased by 20% annually, reaching 12 million users, while the mobile broadband penetration rate stands at 80%. These factors collectively ensure data security and sovereignty in a rapidly evolving digital world, making Tier-3 and Tier-4 data centers pivotal to Cambodia’s growing digital infrastructure.

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Top 5 Players are Holding More than 70% Revenue Share in Cambodia Data center colocation market

The Cambodian data center colocation market is dominated by five key players: ByteDC, Chaktomuk, KEPSTAR Data Center, NeocomISP’s (NTC), and KDDI Corporation. Collectively, these companies capture over 80% of the market revenue, with ByteDC leading the pack with a 29.63% market share. ByteDC's dominance is attributed to its strategic investments and the establishment of Cambodia's first Tier III certified data center, which underscores its commitment to high standards and reliability. ByteDC's competitive edge lies in its state-of-the-art infrastructure and strategic partnerships. The company has invested in advanced systems such as Uninterruptible Power Supply (UPS), Data Center Infrastructure Management (DCIM), and efficient cooling systems, which ensure high performance and reliability. Additionally, ByteDC's collaboration with Singaporean investors has bolstered its financial and technological capabilities, enabling it to set a benchmark in the Cambodian market. This focus on quality and innovation has positioned ByteDC as a preferred choice for businesses seeking robust and scalable data center solutions.

KEPSTAR Data Center, another significant player in the Cambodia data center colocation market, is expanding its footprint with ambitious projects, including a 110,000 sq ft 6.5MW data center and a 50,000 sq ft 3.5MW facility. These expansions reflect KEPSTAR's strategy to cater to the growing demand for data services in Cambodia. Meanwhile, NeocomISP’s (NTC) emphasis on sustainability and scalability, coupled with its Tier III compliance, highlights its commitment to providing high-quality infrastructure. Chaktomuk and KDDI Corporation also play crucial roles, leveraging their expertise and resources to maintain competitive positions in the market. Together, these companies drive the growth and development of Cambodia's colocation data center industry, fostering a competitive yet collaborative environment.

Cambodia Data Center Colocation Market Key Players

• ByteDC
• China Telecom
• Chaktomuk
• Ezecom
• KEPSTAR Data Center
• MekongNet IXP
• NeocomISP’s (NTC)
• KDDI Corporation
• Singtel
• Telcotech’s Data Centre
• Other Prominent Players

Key Segmentation:

By Component

• Colocation Data center
  • 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
• Datacenter Colocation Services
  • Retail Colocation
    • 1U-10U
    • Quarter rack
    • Half rack
    • Full rack
  • Wholesale Colocation

By Datacenter Type

• Tier 1
• Tier 2
• Tier 3 & 4

By Enterprise Size

• SMEs
• Large Enterprises

By Industry

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

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