Singapore has already lost the race for more data centres

Is Singapore still in the data centre race? Here's my take on why we have already lost in capacity - and why it no longer matters.

For today's Unfiltered Friday, let's talk about a question that keeps cropping up: Is Singapore out of the data centre race?

Singapore data centre hub

I get asked this question quite a bit. After all, Singapore's data centre industry saw a meteoric rise over the last two decades.

• Is a top data centre hub in the region.
• Has incredible connectivity with 26 subsea cables*.
• All major cloud players are here, both east and west.

This will change soon as Johor overtakes Singapore in data centre capacity.

*Mid-June 2023

Carbon bottleneck

Once again, Singapore finds itself confronted with the inherent limitations of its size. This time, the challenge is its carbon emissions.

With limited renewables, it must keep its carbon emissions in check to meet its commitments. And it already has the densest data centre market by population and GDP.

The pie is fixed, yet other key sectors need a slice too.

• High-value manufacturing.
• Maritime, shipping.
• Tourism.

So unless Singapore gets nuclear power or starts importing renewables in the gigawatts, unchecked data centre growth will never come back.

Shifting the goalposts

But the game is on, and both nuclear and massive importing of renewables will take years to realise even if everything goes smoothly.

In the meantime, how does one win a game with no hope of victory? Simple. You move the goalposts. Or change the game.

In this case, make it so it's not about having the largest data centres.

More specifically, craft a strategy that benefits our neighbours in Johor and Batam, harnessing the strengths of each to better meet the needs of the much larger APAC region.

That's the genesis of the SG+ strategy.

Hub of a much larger network

Singapore is playing a much larger game because it has no choice. This isn't just about data centres but intertwining neighbouring markets to make it even more appealing.

In the meantime, Singapore is also pushing ahead to develop itself as an advanced digital hub.

• 300MW of data centre capacity released.
• Plans to double subsea landing stations.
• Singtel is building Johor, Batam data centres.
• Keppel, STT GDC have entered Johor.

And in case you never noticed, all four DC-CFA winners have regional footprints.

So yes, the game has changed. It's time to focus on the bigger picture and work on positioning Singapore as the hub of a much larger network.