Market Intelligence
Information and Communication Technology Singapore

Singapore New Data Centers

Singapore has long been the data center hub of the Asia Pacific.  60% of data centers in the region are here, thanks to robust infrastructure, high-speed connectivity, exceptional international and regional connectivity, low risks of natural disasters, and the widespread adoption of digital technologies.  There are more than 70 operational data centers in Singapore with a footprint of more than 378MW or more than 7% of Singapore’s electricity.  U.S. companies in this sector here are Digital Realty, Equinix, Savvis, Google, Amazon, Microsoft, IBM, Verizon, etc.   

Demand for Data Centre in Singapore will remain high with the rapid growth of digital apps, e-commerce, IoT, Artificial intelligence, crypto-trading, blockchain activities, online gaming etc. The shift to hybrid working and business digitalization has also contributed to the demand for data center space. 

The government recently lifted the new data center development moratorium with a pilot Call for Application (CFA). Overall, the plan is to have data centers that are more sustainable, reduce their carbon emission, invest in green technologies, and have a higher-performance infrastructure.  In this way, the government is looking to fulfill its environmental obligations under the 2015 Paris agreement while simultaneously supporting digital economy needs.  

New proposals must invest in hydrogen or solar panels, have 1.3 and below Power Usage Effectiveness (PUE); be Platinum certified under Singapore’s BCA-IMDA Green mark and use “State of the art technologies and best practices for sustainability.”  It should also strengthen Singapore’s international connectivity and position as a regional hub and significantly contribute to Singapore’s broader economic objectives.  

Data Center providers are now rethinking strategies and exploring other models such as aggregating centers in data parks, floating data centers, redevelopment of older facilities, etc. 

As climate action is gaining pace internationally, developing a sustainable, energy-efficient data center sector is essential to combat the burgeoning cost of carbon footprint.  Cutting-edge innovations for enhancing energy efficiency in tropical environments will be developed and promulgated across the region from Singapore.  Digitalization and new technologies will benefit the entire area. 

With the exponential growth of data and data centers’ demand for talent, players can consider adopting modern autonomous data management tools that harness artificial intelligence and machine learning to help with staffing.

Although the days of the new hyper-scale data center are over here, cloud and colocation players could find it beneficial to run their data center operations in Singapore for Asia.  New hyper-scale facilities will be connected through subsea cables to Singapore for its digital ecosystem.

U.S, firms may consider gaining first-hand knowledge at Data Centre World (DCW). DCW is Asia’s leading data center event.  It returns on October 12-13, 2022 for its 8th edition at Marina Bay Sands, Singapore.  Consisting of both an exhibition and conference, this award-winning event connects technologists and business leaders with experts, solutions and services to gain first-hand knowledge and all that is required to enhance a data center’s capabilities, efficiencies and readiness for all future demands. 

US companies who wish to learn more, explore opportunities or partner Singapore entities may contact Amelia Yeo at the U.S. Commercial Service, Singapore   

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