Chinese language web conglomerate Tencent Holdings is elevating the stakes within the race in opposition to international opponents for the burgeoning cloud companies market in Asia, with a plan to open two information centres in Indonesia by the tip of this yr.
The Shenzhen-based firm mentioned it might construct most of its deliberate information centres in Asia, together with South Korea and Thailand, in addition to the Center East, Poshu Yeung, Tencent Cloud Worldwide’s senior vice-president informed Nikkei Asia in an interview.
Tencent operates 20 information centres exterior China, with the primary batch launched in Europe and the US. However amid rising political tensions between China and western nations, Yeung mentioned the corporate plans so as to add 30 to 50 per cent extra information centres by the tip of this yr, principally within the Asian area.
Through the coronavirus pandemic, Asia has skilled quick development in video conferencing, ecommerce, on-line training, gaming and livestreaming as folks spend extra time at dwelling.
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In an effort to cater to the surging demand for on-line companies, massive know-how firms akin to Alphabet’s Google, Fb, Amazon and Microsoft, in addition to China ecommerce firm Alibaba Group Holding, are racing to construct information centres to monetise alternatives within the digital transformation of Asia. Funding in information centres in Asia-Pacific quadrupled to $2.2bn final yr from 2019, in keeping with property marketing consultant CBRE.
Amongst Asian nations, Indonesia is without doubt one of the hottest battlegrounds for cloud companies. Google, Microsoft, Amazon and Fb have introduced plans to construct their first information centres within the nation, the world’s fourth largest by inhabitants with 270m folks. Alibaba has opened two information centres in Indonesia and plans so as to add a 3rd.
“I feel Indonesia is definitely one of many fastest-growing cloud-business markets in south-east Asia,” Yeung mentioned. “That is the primary time we’re launching two information centres in the identical yr in the identical market. It reveals how dedicated we’re and the way a lot we worth the native market.”
The brand new information centre, positioned in Jakarta’s central enterprise district, will assist a variety of industries together with monetary companies, ecommerce, leisure, gaming and training. Native cloud infrastructure bases assist cut back delays in information processing, enabling firms to launch extra aggressive companies in contrast with these utilizing abroad cloud amenities.
“By establishing our information centres, our presence will assist us get extra native companies,” Yeung mentioned.
Tencent was the fourth-largest supplier within the Asia-Pacific cloud market after Alibaba, Amazon and Microsoft, in keeping with a 2019 report by analysis firm Gartner.
Tencent’s native purchasers embrace Jakarta-based Financial institution Neo Commerce, which is able to use Tencent’s database to assist its digital banking companies. Whereas Yeung believes monetary know-how has massive development potential in south-east Asia, he mentioned that Tencent doesn’t have plans to run its personal virtual-banking companies. He added that the corporate is speaking with native governments to supply information assist for public companies.
Tencent has supplied technological assist for livestreaming occasions of Singapore ecommerce platform Shopee. The each day viewing time of Shopee’s reside web site elevated greater than 15-fold over the previous yr.
By constructing its personal information centres, Tencent is also trying to speed up the abroad enlargement of different companies within the group, together with music app Joox and video-streaming platform WeTV, in rising Asian markets.
“The truth that we’ve got a variety of our personal companies and in addition investee firms world wide focusing on or doing companies in Indonesia, it makes a variety of sense for us to have our personal information centres,” Yeung mentioned.
A version of this article was first revealed by Nikkei Asia on April 12, 2021. ©2021 Nikkei Inc. All rights reserved.
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