Telecom Sanxiong accelerates upgrading of data centers, deploys AIDC to seize computing power business opportunities

Reporter Wang Yihong/Special report

The demand for generative AI and cloud data processing has surged. International cloud service providers (CSPs) such as Microsoft, AWS, and Google have expanded their deployment in Taiwan. In addition, local companies’ demand for computing power, data localization, and AI infrastructure has also increased simultaneously. Targeting foreign cloud giants and local computing power needs, the three telecommunications companies are not only accelerating the upgrade of existing data centers (IDCs), but also planning to build new generation AIDCs (AI data centers), starting an arms race.

In order to seize computing power business opportunities, China Telecom's three major players have comprehensively upgraded existing computer rooms, actively built next-generation AI data centers, and launched an arms race in computing power infrastructure.

(Photo by reporter Jin Changling)

In recent years, amid geopolitics and the need to prevent core data from being controlled by foreign cloud companies, as well as stricter regulations requiring the implementation of sensitive data, countries have actively promoted "sovereign AI", prompting global CSPs and hosting companies to accelerate the construction of locally compliant AIDCs in core cities in various regions.

Please read on...

Asia's AIDC battlefield shifts, Japan and South Korea reshape new computing power landscape

In Asia, with the current deployment of AIDC in Southeast Asia, Malaysia can be said to be the biggest dark horse in the expansion of computing power in the Asia-Pacific, mainly due to limited land and power quotas in Singapore. Therefore, Malaysia, especially Johor and Cyberjaya, Selangor, which are close to Singapore, have become the preferred hub for CSP and data center operators to expand ultra-large-scale AIDC in Southeast Asia.

Japan in Northeast Asia has become one of the most active Asian markets for CSP investment in the world against the background of technological competition and cooperation between the United States and China. Microsoft, AWS, Oracle and SoftBank have all committed tens of billions of dollars in investments. In addition to traditional computer room clusters in Tokyo and Kansai, in order to disperse power grid and earthquake risks, large-scale AIDC is being dispersed to Hokkaido, such as Ishikari Green Energy Park, as well as Tohoku, Kyushu, and other non-urban areas that have the advantages of restarting green energy or nuclear power. South Korea is promoted by the country's technology giants, such as Naver, Kakao, SK Telecom, KT and global cloud players. Among them, "GAK Sejong" built by Naver is Asia's benchmark high-density green energy super-large data center.

There is a huge gap in AI computing power, and China Telecom’s top three companies are accelerating upgrades to seize business opportunities.

Domestic Chunghwa Electronics (2412), Taiwan Telecom (3045), Far EasTone (4904), plus Chunghwa Telecom holding 55.63% of the shares, independent computer room construction and service provider Shifang (6561), there are currently 41 companies in Taiwan Among them, there are no more than 10 AIDCs that meet the needs of the new generation. Therefore, the four companies have adopted a dual-track approach of expanding computer room capacity, upgrading cooling technology, and building new AIDCs to enter the AIDC market.

According to analysis by telecom operators, customers currently in demand for AIDC computer rooms can be divided into five categories. In addition to international cloud and technology giants, including world-renowned public cloud service providers (such as AWS, Google, Microsoft Azure) and AI computing service-related operators, major domestic and overseas telecom and network operators, such as Japan's KDDI, Singapore and other international telecommunications companies, will use domestic IDC computer rooms for traffic exchange and transfer.

At the same time, multinational and local banks, insurance and securities companies that have extremely high requirements for information security and computer room stability, as well as OTT audio and video streaming platforms, online game operators, e-commerce websites and other companies that require large bandwidth and low-latency transmission, as well as small and medium-sized software vendors and AI technology start-ups that purchase servers and cabinet space to move into computer rooms, all have high demand for IDC computer rooms.

Grasp the economic pulse with one hand. Click here to subscribe to Free Finance Youtube Channel