As companies evolve into digital enterprises, keywords such as ambient computing, Industry 5.0, digital twins, and sustainability are emerging as key elements.

Equinix, a data center solution provider, announced on the 3rd four trends that will transform the digital landscape of the Asia-Pacific region in 2023.

With the recent increase in data demand, cloud infrastructure has rapidly advanced in both established and emerging markets within the Asia-Pacific region. Major metropolitan hubs in the region are demanding broader data connectivity.

As network environments become increasingly integrated and the number of connected devices grows, standards are rising for connectivity and automation solutions, as well as the cloud ecosystem itself. Furthermore, innovations are currently underway to further enhance the efficiency and sustainability that originated in cloud computing.

■ Ambient Computing and 5G Leading Digital Transformation as a Service

'Ambient' literally means surroundings or vicinity, and ambient computing is a technology that allows users to utilize digital and computing-based devices and services without being conscious of them, using various IT services and devices that surround the user.

Equinix assessed that ambient computing led the Internet of Things revolution and has naturally led to the integration of technology with daily life.

Internet of Things (IoT) spending in the Asia-Pacific region is projected to increase exponentially to $436 billion by 2026, with a compound annual growth rate (CAGR) of 11.8% over the five years starting from 2021. Through 5G, new achievements can be made in areas such as IoT communication, ultra-low latency, and mobile edge computing, thereby improving customer experience and creating new revenue streams.

In addition, with the adoption of 5G expanding edge availability, legacy enterprises across industries are beginning digital transformation, leading to a continuous increase in demand for data and digital services. Global infrastructure edge availability is expected to reach 40 gigawatts by 2028, with 63% of it supporting the healthcare, manufacturing, energy, retail, and transportation sectors.

Digital Supply Chain Accelerating Toward Industry 5.0

The goal of the next-generation digital supply chain is to build a completely new type of supply chain with superior resilience and responsiveness.

Equinix noted that companies with highly digitized supply chains and operating systems are expected to see an annual efficiency improvement of 4.1% and a profit growth of 2.9%. However, it also views the current economic environment as highly likely to cause disruption.

This is because even the best supply chain planning cannot completely prevent the disruption caused by sudden changes in demand, raw material shortages, or natural disasters. Companies have continuously strived to transform their supply chains to mitigate these risks. Continuously digitizing supply chains will accelerate the arrival of Industry 5.0, where efficiency and productivity are optimized through the collaboration of humans and robots.

■ Digital Twin: Transitioning from Automation to Sustainability

The Asia-Pacific digital twin industry recorded $1 billion in 2019 and is expected to record an average annual growth rate of 35% until 2026 as government initiatives for IoT infrastructure and smart city development increase.

Digital twins not only provide the benefit of operational optimization but also support companies in achieving ESG goals. Digital twins have transformed the way sustainable data centers are designed, enabling faster start and more iteration than ever before.

■ Environmental Protection and Future Data Centers

Amidst an uncertain economic environment, many companies, including SMEs, are prioritizing costs that contribute more directly to profit growth over investments in sustainability. As awareness of the benefits of digitalization combined with sustainability grows, SMEs will be more confidently encouraged to invest in initiatives such as more efficiently operated colocation facilities.

In addition, companies can achieve sustainable energy goals and reduce overall carbon emissions through data center providers' investments in renewable energy and other sustainability features.

Equinix provides tangible value in data center systems that operate more efficiently using renewable resources while maximizing physical installation space and energy.

“Whenever Equinix launches a new project, we always strive to find ways to achieve results that exceed expectations in both sustainability and innovation,” said Jang Hye-deok, CEO of Equinix Korea. “The best way to predict the future is to create it. Equinix will strive to create innovative and sustainable results through collaboration with companies both at home and abroad.”