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The U.S. is the least riskiest place to open a data center

By Agam Shah
May 22, 2013 03:13 PM ET

But as LTE deployments grow, there will be a need for more data centers as more companies centralize applications and deploy private clouds. That should give new life to the European data center business, according to the study.

Economies in Asia are growing, but a range of issues, including poor connectivity, government rules and supply-chain problems remain challenges in establishing data centers, according to the study.

For now, strict regulations have made it difficult to establish data centers in China, but that could change in the future, according to the study.

The growing presence of foreign companies in China has increased demand for data centers with operational efficiency matching global standards, according to the study. That could pressure local operators and also create opportunities for new companies looking to establish data centers. Many data centers are in the Shanghai and Beijing areas, but data centers also have been built in Guangzhou, Chengdu and Shenzhen, according to the study.

Qatar, which ranked 10th, was rated as the lowest-risk place in Asia to establish a data center. But a number of companies, including Intel and Advanced Micro Devices, have established data centers in Malaysia in recent years. Malaysia was viewed favorably in the survey for a balance of low energy costs, low inflation rates and ease of doing business, but poor Internet connectivity and political instability remained concerns.

Agam Shah covers PCs, tablets, servers, chips and semiconductors for IDG News Service. Follow Agam on Twitter at @agamsh. Agam's e-mail address is agam_shah@idg.com

Reprinted with permission from IDG.net. Story copyright 2014 International Data Group. All rights reserved.
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