A new chapter for data centres in Singapore
What to expect next.
It's over 3 months since Singapore released 300MW for new data centres. Here's what to expect next.
Even after a lengthy moratorium, Singapore imposed exacting standards on new data centres. This made the 300MW in May all the more surprising.
Reviewing the big picture
Why the sudden about-turn? Let's look at the facts:
- It has outsized carbon footprint with <10% renewables.
- Singapore already has the highest density of data centres.
- Modern 100MW+ data centres are untenable.
On the other hand:
- Strategic digital opportunities are slipping by.
- Its role as a data centre hub is eroding quickly.
Singapore needs to pivot:
- A smart growth strategy is needed.
- Can it turn green data centres into an opportunity?
Here's two features I wrote on this topic:
The road ahead
The 300MW announcement and the Green Data Centre Roadmap leave ample leeway for IMDA to launch any number of initiatives.
Let's zoom in on those we already know about.
a. DC-CFA 2
When I asked IMDA if the next Data Centre - Call for Application (DC-DFA) would be scrapped, the response made me think it would continue.
I expect a new CFA but tweaked to support the Roadmap and with tightened conditions regarding deployment timeframes - the inaugural DC-CFA winners have yet to start work as of April.
b. Green Mark for Data Centre 2024
The BCA-IMDA Green Mark for Data Centre scheme is an example of highly successful standard that is seeing adoption beyond S'pore.
On this front, I expect an updated standard with a stronger focus on water usage efficiency (WUE), not just the use of NEWater.
c. New data centres
When I asked around, I was surprised that many industry insiders are sceptical of the 300MW. I feel this is partly due to how much larger data centres are today - a single campus could top 300MW by itself.
This means there will be added pressure to award new data centre capacity quickly to demonstrate that S'pore remains a viable location for data centre growth.
Expect news soon
The clock is ticking as we come to the end of 2024. I would expect new developments to be announced any day soon, or at least the initiation of new consultations with the industry.
I'll caution that an overtly consultative approach could be counterproductive, given the disparate agendas of industry stakeholders.
This means a successful pivot will require strong tech leaders with deep industry knowledge to decisively advance the Roadmap.
