Artificial intelligence (AI) adoption has accelerated across Asia Pacific, but strategic data management remains key, Digital Realty said in a recent study.

The global provider of cloud and carrier-neutral data center has on Monday released the Asia Pacific findings of its 2024 Global Data Insights Survey, highlighting a significant surge in AI adoption among enterprises in the region.

The survey of 2,000 information technology (IT) leaders across 21 countries including Australia, India, Japan, Hong Kong, Singapore and South Korea found that although many enterprises in Singapore (46 percent), South Korea (66 percent), and Hong Kong (45 percent) rate themselves as mature in AI adoption, only a quarter of enterprises in the region consider their current AI use to be transformative.

This suggests a strong need for greater investment in digital infrastructure to unlock AI’s full potential.

Meanwhile, IT leaders across Asia Pacific acknowledge the essential role of strategic data management in effectively unlocking the full value of AI.

The survey revealed that 65 percent of companies in the region are actively executing a formal data strategy for their current or planned IT locations, with 77 percent of Asia Pacific companies adopting a distributed data approach to tackle data gravity challenges.

According to the survey, 72 percent of enterprises are incorporating data location strategies into their AI plans, allowing them to place high-density storage and processing capacity in key locations to maximize AI’s performance.

Additionally, 56 percent plan to expand their infrastructure in one to five more locations within the next two years.

This expansion will enable adherence to data sovereignty regulations, and allow them to scale AI workloads crucial for their future digital infrastructure plans.

As organizations prioritize data-driven initiatives, further investment in digital infrastructure is necessary to fully harness the potential of AI.

Infrastructure hurdles continue to impede the success of AI investments in the region, with over half (56 percent) of Asia Pacific enterprises lacking the digital infrastructure required for both data and AI success.

According to the survey, key infrastructure challenges include insufficient data storage for large AI datasets (64 percent); inadequate computational power for AI processing (55 percent) and ensuring reliable connections to distributed data sources (49 percent).

To achieve data and AI success, IT leaders in Asia Pacific emphasize the need for data center providers to enable secure data exchange between users, networks, clouds, and IT providers on a single data center platform.

Key requirements they shared include infrastructure capable of managing AI’s power and energy demands for data storage, processing, and hosting (51 percent); proximity of high-performing AI workloads to data and users (46 percent); compliance with AI and data privacy regulations (45 percent).

Sustainability is also a top priority in Asia Pacific, with 59 percent of respondents stating that their sustainability goals are the most important factor impacting AI strategy.

“In Asia Pacific, the race to harness AI’s power is accelerating. Businesses are realizing that AI is not just a buzzword, but a strategic imperative for driving innovation and growth,” said Serene Nah, Managing Director and Head of Asia Pacific for Digital Realty.

According to her, the key to success lies in a data-centric infrastructure that can seamlessly integrate data from various sources, deliver high-performance computing, and ensure robust connectivity.

“By prioritizing sustainability and leveraging cutting-edge technologies, organizations can unlock the full potential of AI while minimizing environmental impact,” she added.

The online survey of 34 questions conducted between October 30 and December 4, 2023, with targeted respondents in companies ranging from sub-$100 million small and medium-sized businesses (SMBs) to multinational corporations with over $1 billion in annual revenue, from 21 countries in the Americas, Asia-Pacific, and Europe.

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