Hyperscale Data Center Explained: Challenges, Growth, and Southeast Asia Expansion
Every time you watch a video, send a message, or save a file online, big facilities work behind the scenes. These are called a hyperscale data center. They store and process huge amounts of data to keep our digital world running. Research from Mordor Intelligence shows that the need for these centers is growing very fast. Most people do not see them, but they are very important. Without a hyperscale data center, services like Netflix, Facebook, and Gmail would not work. As we use more digital services, these centers become even more important. What does a hyperscale data center do? A hyperscale data center helps run large digital services by storing and processing a lot of data. It gives space and power for the biggest online platforms in the world. For example, it supports social media, cloud storage, and apps that millions of people use every day. A hyperscale data center is a very big building that has at least 5,000 servers. As mentioned in the earlier research, these centers provide more than 20 megawatts of power to run all the computers. To understand this, 20 megawatts can power about 16,000 homes. Companies like Amazon, Google, and Microsoft use these data centers to run their services worldwide. Other big software and content companies also rely on them. The demand for these facilities is growing fast. The same research shows the market reached USD 167.34 billion in 2025. Experts expect it will grow to USD 602.39 billion by 2030. This means the market will grow about 23.58% each year, making it one of the fastest-growing technology areas in the world. Why are hyperscale data centers expanding? The expansion of a hyperscale data center happens because of several factors. These factors include: Current challenges According to the previous report, Even though this industry is growing fast, it still faces three main problems: Connectivity needs in southeast asia A hyperscale data center needs strong infrastructure to work well, store large amounts of data, and grow when demand increases, especially in Southeast Asia. More people are using digital services, so reliable networks and systems are becoming very important in the region. To support this demand, big cloud companies are investing billions in Malaysia, Indonesia, Thailand, and Singapore. These data centers also need stable and fast connections. ARNet provides dark fiber networks to give them this connectivity. Our network covers over 10,000 kilometers and links 60 data centers across the region, keeping them connected. We have all the telecom licenses needed in each country, so our customers can work with a single provider. Because we build and maintain our own network, we can provide fast setup and high-quality service for a hyperscale data center. This network focuses on major cities like Bangkok, Kuala Lumpur, Johor Bahru, Singapore, Jakarta, and Batam, where demand is highest. As Southeast Asia’s digital economy grows, strong connections become even more important. ARNet gives operators the foundation they need for their networks. Companies planning a new hyperscale data center in the region can rely on our solutions to support their growth. About the Author Nabila Choirunnisa, Digital Marketing Executive at ARNet
3 Types of Colocation Data Centers That Matter for Your Business
Businesses today make more data than before. Because of this, they need a safe place to keep it. A colocation data center is a place where businesses can put their servers and equipment. This way, they do not need to build their own data center. Many businesses use colocation since it is cheaper and easier. For example, they can rent space in a professional data center instead of making one. In this article, we will explain what a colocation data center is, how it works, and the three main types for different business needs. What is a colocation data center? A colocation data center is a place where businesses rent space for their IT equipment. In addition, the center gives power, cooling, internet, and security. Companies bring their own servers and other hardware. Moreover, using this type of data center can save money. Businesses do not need to build their own data center. Instead, the provider takes care of the building, power backup, and security. At the same time, companies still control their own equipment and data. According to Grand View Research, the global colocation market was USD 69.41 billion in 2024 and is expected to reach USD 165.45 billion by 2030. How colocation data center works? Colocation data centers work by sharing space among multiple companies. For example, each company has its own space. Also, the center gives power, cooling, and other things to run the servers. In addition, it has backup generators to keep power on. Meanwhile, cooling systems stop servers from getting too hot. Moreover, security includes cameras, locked doors, and staff. Then, the servers connect to the internet using many networks. As a result, the colocation data center takes care of all these things. Therefore, companies get safe and reliable service. Additionally, staff watch the center all the time and fix problems fast. Types of colocation data center Different businesses need different space and services. Colocation data centers have three main types. Each type is for different business sizes and needs. Each type gives different benefits. The benefits depend on the size of the business, money, and technical needs. Here are the details of each type. Choosing the right colocation data center type depends on how much equipment you have. It also depends on your growth plans and your budget limits. Building better connectivity for your data center Colocation data centers need fast and strong connections. They use fiber optic cables to move data quickly. These cables link data centers and connect them to the internet. Strong fiber networks reduce delays and give better service. To meet this need, ARNet provides dark fiber solutions in Southeast Asia. Dark fiber is fiber that companies can use by themselves. ARNet has over 10,000 kilometers of fiber and connects 60 data centers in Malaysia, Indonesia, Singapore, and Thailand. This helps hyperscalers and internet companies connect their facilities. We own and run all of the networks. We do not rely on other companies. This helps us to give you fast setup, steady service, and over 99.99% uptime. Our solutions also can help you to monitor the network to fix problems early. Because of this, businesses using a colocation data center get one provider managing all connections, making it simple and reliable. About the Author Nabila Choirunnisa, Digital Marketing Executive at ARNet