Brunei is 'well-positioned' to be data centre hub

"Brunei is very so then-positioned to develop data centres due to its highly stable political climate and good infrastructure and that the country is safe from a natural disaster perspective," said Idris Vasi, CEO of DST Group, in a just-released report on the Sultanate published by the Oxford Business Group.

"Cloud computing is especially good for small and medium-sized enterprises as they do not have to spend a whole lot of capital upfront, and they can outsource these services. Even larger companies are nevertheless looking at cloud-based services," he said. The CEO explained cloud computing as in substance outsourcing server storage computing requirements and putting them into the 'cloud'.

Big player in the ICT field

"Another way of looking at this development is that if Brunei wants to be a big player in the ICT field and increase its non-oil and gas revenue, at the time it can become an ICT hub for data centres," he said.

He said that Brunei could choose to develop primary data centres or backup or secondary data centres for business continuity. "Nevertheless that we are upgrading our submarine cables and putting multiple back-up systems in pace, it makes sense for large data centre operators and companies to look at Brunei as an alternative place to locate a data centre," he said.

"So the two implications of building data centres will be the positive impact it has on local businesses and as well turning Brunei into an international hub. We will be looking at both, even though the latter part will be more long-term," the CEO added.

However, he said data centres are known to be expensive, and could cost between $50m and $100m to construct. "Again, there are multiple ways of looking at this type of business venture. Brunei could either go it alone or partner with one of the bigger players ... As late as this, we have not determined which route we will take, nevertheless we will undoubtedly be exploring the options," he said.