摘要：China’s IDC sector started expanding into the overseas market in 2023 due to the saturation of the domestic market and the pace of

AsianFin -- The term "going abroad" has become one of the most popular buzzwords across various industries in China in 2024, and the Internet Data Center(IDC) service sector is no exception.

China’s IDC sector started expanding into the overseas market in 2023 due to the saturation of the domestic market and the pace of overseas expansion for IDC service providers, especially internet giants, accelerated last year.

China's IDC sector has prioritized Southeast Asian market. Companies such as Chindata Group, a leading carrier-neutral data center solution providers in China, have set up data centers or deploy resourcess in countries like Malaysia, Thailand, India, and Indonesia. Similarly, GDS, a leading Chinese developer and operator of high-performance data centers, has focused its efforts on countries like Malaysia, Singapore, and Indonesia.

In addition to traditional IDC service providers, domestic cloud computing giants like Alibaba Cloud have also made inroads into Southeast Asia.

Recently, Yuan Qian, President of Alibaba Cloud Intelligence International, announced that the company plans to invest in building new data centers in five countries over the next three years, including South Korea, Malaysia, the Philippines, Thailand, and Mexico. Three of these data centers will be located in Southeast Asia. Tencent Cloud has also established its own data centers in Indonesia and Thailand.

Digital technologies have advanced rapidly in Southeast Asia in recent years. The increasing prevalence of electronic devices and the rapid growth of internet coverage, now at 75%, have set the stage for a booming digital economy.

Wang Hongtao, Deputy General Manager of China Telecom International's Product Innovation Division, noted that the data center market in the Asia-Pacific region, particularly Southeast Asia, has developed rapidly due to the fast growth of internet, cloud, and AI services.

Wang pointed out that while data centers in the Asia-Pacific region are still in their infancy, they are catching up rapidly with the West and China. Many countries are accelerating the development of their domestic data centers to meet growing demands for internet infrastructure and stricter data security requirements.

Chinese IDC companies have been quick to capitalize on the booming demand in Southeast Asia. For example, GDS started working on its first ultra-large data center in Malaysia in 2021, and its second-phase data center in the Nusajaya Tech Park officially began operations in July 2024, marking the first data center in the region that supports large-scale AI computation.

Similarly, Chindata Group has established multiple data center campuses in Malaysia, including four large-scale data center campuses that are already operational, with a total capacity exceeding 158 MW. Two additional campuses are under construction, with an expected capacity of over 540 MW upon completion.

In addition to the third-party data center solution providers, Chinese telecom operators also jumped on the bandwagon.

China Telecom, a state-ownedtelecom giant, has over 20 years of experience in overseas business. Through extensive partnerships with local operators, China Telecom has established over 300 cooperative nodes across the globe, making it easier to expand existing IDC operations to meet customer needs. Their strategy focuses on "building first, finding business later."

On the other hand, most third-party IDC providers typically expand overseas in response to Chinese customers’ demand. For example, one prominent IDC service provider said that their overseas business mainly follows the lead of domestic clients who are setting up operations abroad.

While China has a mature IDC industry with significant cost advantages, there are still many challenges to overcome when operating in overseas markets. Wang said that talent acquisition and complying with local regulations are some of the biggest challenges. Building an international team capable of handling cross-lingual communication and understanding local business practices and laws is the way to address these challenges.

Unlike China's construction methods, many countries in the Asia-Pacific region follow the BS standard for IDC construction. Meanwhile, there are greater differences in project contracting and organization, such as how to handle the relationship between consulting firms and the client. In China, the client has significant leadership and decision-making power, but in overseas projects, the consultant is typically in charge and is accountable to the government. They have considerable signing authority and must balance their relationship with the consultant while clearly defining responsibilities, authority, and rights.

Wang stressed the importance of localization in operations and adapting to local construction standards and industry practices to ensure smooth operations. By leveraging their technological and cost advantages, Chinese IDC providers are positioned to successfully expand abroad, but they must also focus on compliance and building a talent pool with diverse experience.

来源：钛媒体