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KUALA LUMPUR: The data centre market in Southeast Asia is projected to grow at over five per cent annually, reaching US$14.41 billion (US$1 = RM4.49) by 2029, according to Hitachi Ltd’s unit, Hitachi Vantara LLC.

Hitachi Vantara chief technology officer for Asia-Pacific (APAC), Matthew Hardman said the APAC region’s rapid urbanisation and growing digital economy make it an ideal environment for deploying innovative artificial intelligence (AI) solutions, especially in energy efficiency, hybrid cloud management, and intelligent automation.

In a statement, he said with data centres being the heart of digital transformation, the energy demands in the region are skyrocketing.

“To tackle this, companies are turning to AI-powered digital twins – virtual models of physical infrastructure – to optimise energy usage and simulate efficiency improvements before implementation.

“This approach is not just theoretical; retrofitting existing data centres with these technologies is already reducing power consumption to be more energy efficient,” he said, sharing his prediction on AI for this year.

Hardman suggested that organisations must rethink traditional storage architectures, as the demand for massive data volumes to train AI grows exponentially.

Object storage solutions accessible via industry-standard protocols provide scalable, cost-effective platforms for managing large-scale data compared to traditional block storage systems, he added.

He also noted that small and medium-sized enterprises (SMEs), which form the backbone of the region’s economies, are also reaping the benefits of scalable AI solutions.

SMEs are leveraging AI to compete at scale, from automating customer service with multilingual small language models (SLMs) to optimising inventory management using predictive analytics.

“As we look ahead, emerging technologies further enhance AI’s capabilities in APAC, enabling businesses to address localised challenges with unprecedented precision.

“AI isn’t just a buzzword anymore—it’s a critical driver of sustainability, security, and resilience, helping the region build a future-ready economy,” he said.

Hitachi Vantara, a wholly owned subsidiary of Hitachi Ltd., focuses on helping organisations manage, store and analyse their data, offering data infrastructure and hybrid cloud services for enterprises and midsize organisations.

 

Source: NST, January 14, 2025.

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