In the digital age, data centres have emerged as the backbone of our interconnected world. They serve as the essential infrastructure that supports our increasingly digital lifestyles, powering everything from cloud computing and big data analytics to e-commerce and social media. In Southeast Asia, this sector is experiencing rapid growth, driven by an explosion in data consumption, advancements in technology, and the region's strategic positioning as a hub for global enterprises.

As businesses in Southeast Asia pivot to digital transformation, the demand for efficient, reliable, and scalable data centre solutions has surged. According to a report by Research and Markets, the Southeast Asian data centre market is expected to grow at a compound annual growth rate (CAGR) of over 11% from 2021 to 2026, reaching a market size of nearly $10 billion by 2026. This growth presents both opportunities and challenges for stakeholders in the industry, including data centre operators, businesses, and policymakers. 

Hence, in our recent People Matters Big Questions session, we spoke to Johnny Widodo, CEO and President Director Ringan (PT Ringan Teknologi Indonesia) and Rajeev Peshawaria, CEO, Stewardship Asia Centre, who shared their insights on the evolving data centre market, the challenges faced by operators, the future of this critical industry and much more. 

The skills gap challenge

One of the most pressing challenges in the data centre sector is the widening skills gap, particularly within the Asia Pacific region. The Uptime Institute estimates that by 2025, there will be a demand for 2.3 million data centre workers globally, with a significant portion of this deficit concentrated in Asia Pacific. HR leaders in SEA face the urgent challenge of bridging this skills gap, which is exacerbated as data centres become more complex and technologically advanced. The demand for specialised skills in cloud computing, cybersecurity, and data analytics is outpacing supply, creating a talent crisis.

Over half of data centre operators report difficulties in attracting top talent, with 42% struggling to retain their workforce amid a competitive talent market, according to data from the Uptime Institute. The shortage of skilled professionals is prompting the data centre industry to implement training programs aimed at expanding the pool of qualified candidates. 

Rajeev Peshawaria, CEO of Stewardship Asia Centre, highlights the need for a multifaceted approach to workforce development: “Leadership today demands more than just technical acumen; it requires a holistic approach to workforce development that integrates both hard and soft skills. This is vital as we transition into a more data-driven future.”

“HR leaders must act swiftly to assess their current workforce and identify skill shortages, focusing not only on hiring new talent but also on the continuous development of existing employees. As companies adapt to new technologies, the talent shortfall is expected to be most pronounced among IT technicians and professionals trained in cloud computing and AI,” he added.

Adapting to new technologies

As the data centre industry evolves, technological advancements are playing a pivotal role in shaping its future. Johnny Widodo, CEO and President Director of Ringan (PT Ringan Teknologi Indonesia) points out that innovation such as artificial intelligence (AI), machine learning, and automation are revolutionising data centre operations, the emergence of edge computing is changing the way data centres are designed and operated. 

With the proliferation of IoT devices and the growing need for real-time data processing, edge computing allows data to be processed closer to the source, reducing latency and bandwidth requirements. The rapid pace of technological change necessitates that HR leaders proactively adapt their strategies to meet evolving needs. 

Traditional recruitment methods may no longer suffice in attracting the talent needed for data centre operations. To tackle this challenge, HR professionals must leverage technology to enhance their recruitment processes. Johnny Widodo emphasises the importance of collaboration between HR and technology teams: “We need to work closely with our tech teams to explore how AI and automation can enhance our recruitment processes. This way, we can identify potential candidates more efficiently and accurately.”

In addition, he suggested, “HR leaders should embrace digital tools for training and development programs, allowing employees to acquire new skills aligned with industry demands. Flexible learning options, such as online courses and hybrid training models, can cater to diverse learning styles and schedules, ensuring a well-rounded approach to skill development.”

Fostering a culture of continuous learning

Speaking of development, fostering a culture of continuous learning is essential for organisations aiming to thrive in the data centre sector. Leaders play a pivotal role in promoting this culture and encouraging employees to embrace new technologies and methodologies. Peshawaria emphasises the significance of lifelong learning and states that “As data centres grow, employees must be open to learning and adapting. This means providing them with the tools and resources they need to stay ahead of the curve.”

“Additionally, organisations should implement programs that prioritise skill development, mentorship, and knowledge sharing. Cross-training initiatives can empower employees to gain insights from various departments, enhancing their overall skill set and fostering collaboration across teams. Furthermore, leadership development programs that integrate practical experiences with formal training are essential for cultivating the next generation of leaders who can navigate the complexities of technology while inspiring their teams,” he said. 

Given the complexities associated with the data center boom, collaboration between organisations and educational institutions is crucial. HR leaders should actively seek partnerships with universities and vocational training centres to create tailored programs that address specific industry skill needs. Rajeev Peshawaria advocates for collective responsibility: “It’s essential for organisations to collaborate with educational institutions to ensure that the curriculum aligns with industry demands. This way, we can cultivate a talent pool that is ready to meet the needs of the data centre sector.”

By fostering collaboration, organisations can share resources and knowledge, creating a supportive network for workforce development. This collective approach can significantly mitigate the skills gap and ensure employees are equipped to succeed in an evolving landscape.

Let’s not forget environmental challenges!

As the demand for data centres rises, so does concern regarding their environmental impact. Data centres consume significant energy, raising questions about sustainability and corporate responsibility. Leaders must proactively ensure that their organisations prioritise environmentally friendly practices. Wondering how? Johnny Widodo stresses the importance of environmental awareness, stating, “We must consider the ecological impact of our operations. This means not only investing in sustainable technologies but also educating our workforce about the importance of environmental stewardship.” 

Here’s how to promote sustainability practices and encourage eco-friendly behaviours among employees:

1. Training Programs and Workshops - Develop comprehensive training programs focused on sustainability practices specific to data centres. These programs can include workshops on energy efficiency, e-waste management, and water conservation. Tailor sessions to different roles within the data centre, ensuring relevance and practical application. Regular workshops can keep employees informed about the latest sustainability technologies and practices.

2. Sustainability onboarding - Integrate sustainability education into the onboarding process for new hires. Provide resources and training on the company’s sustainability goals and the specific practices related to data centre operations. This foundational knowledge will empower employees to incorporate sustainable practices from day one, fostering a sense of responsibility and engagement with the organization’s environmental initiatives.

3. Awareness campaigns - Launch awareness campaigns that highlight the importance of sustainability within data centres. Use newsletters, posters, and digital displays to communicate key facts, statistics, and success stories related to energy savings and eco-friendly practices. Interactive content, like quizzes or challenges, can engage employees and promote a fun learning environment around sustainability.

4. Hands-On Learning Opportunities - Provide opportunities for employees to engage in hands-on sustainability initiatives, such as energy audits, e-waste recycling drives, or water conservation projects. By actively participating in these initiatives, employees can gain practical experience and better understand the impact of their actions on the environment. Encourage cross-departmental collaboration to foster a sense of community around sustainability efforts.

5. Feedback and Continuous Improvement - Create channels for employees to provide feedback on sustainability practices and suggest improvements. Regularly assess the effectiveness of training programs and awareness campaigns through surveys and discussions. This approach not only empowers employees but also ensures that the organization evolves its sustainability practices based on workforce input, fostering a culture of continuous learning and improvement.

6. Leadership Involvement - Involve leaders and managers in promoting sustainability initiatives. Encourage them to lead by example, participating in training sessions and championing sustainability goals within their teams. When employees see leadership commitment to sustainability, it reinforces the importance of these practices and motivates them to adopt similar behaviours.

7. Recognition programs - Implement recognition programs to celebrate employees or teams who make significant contributions to sustainability efforts in the data center. Highlighting success stories in company communications not only acknowledges individual and team efforts but also inspires others to engage in sustainable practices, reinforcing the importance of collective action toward sustainability goals.

Preparing for future workforce trends

As data centres continue to expand in response to increasing digital demand, organisations must rethink their workforce strategies to prepare for the future. The convergence of technological advancements, sustainability imperatives, and evolving employee expectations presents unique challenges and opportunities for HR leaders. One key perspective is the integration of AI and automation into the workforce. As data centres become more complex, the demand for skilled professionals who can manage and optimise these technologies is rising, stated both the panellists.  

Johnny Widodo suggests organisations to, “Not only hire for current needs but also invest in predictive analytics to anticipate skill gaps. This approach enables HR to identify training opportunities and foster talent within the organisation, ensuring a ready pipeline of skilled workers who can navigate the evolving landscape.”

Remote work capabilities also play a pivotal role in shaping the future of data centres. The pandemic has accelerated the acceptance of remote work, leading organisations to rethink traditional staffing models. Data centres can benefit from a hybrid workforce that combines on-site and remote employees, allowing companies to tap into global talent pools. This flexibility not only helps in attracting diverse talent but also aids in operational efficiency, as teams can collaborate across different time zones.

Rajeev Peshawaria reminds organisations to, “Prioritise mental health and well-being as part of their workforce strategy. As the pressures of rapid technological change mount, employees may experience burnout and stress. Implementing robust mental health initiatives can enhance employee satisfaction and retention, creating a more resilient workforce”

“Fostering a culture of innovation is crucial. Data centres are at the forefront of technological advancements, and organisations should encourage employees to experiment with new ideas and solutions. By creating an environment where innovation is rewarded, organisations can harness the creative potential of their workforce, driving continuous improvement and adaptation in a fast-paced industry,” he added. 

To learn more from leaders about some of the burning questions in today’s world of work, stay tuned to People Matters' Big Question series on LinkedIn.