Where is Singapore headed with data centres?

Is Singapore losing the data centre race? I met Kevin Kwang this evening to discuss the future of data centres in Singapore for CNA Explains.

What is the role of data centres here and where is Singapore headed?

Not a zero-sum situation

I get asked this a lot, given the relatively fewer data centres built in Singapore in recent years. Concerned friends, including those in the data centre industry ask: "Is Singapore falling behind in data centres?"

But this question presupposes a zero-sum game where the city with the most data centres wins - and everyone else loses. I don't see this as an accurate depiction, however.

I think this question is best reframed as: How can we strengthen our data centre ecosystem despite our inherent limitations?

To do so requires thinking outside the box.

Overcoming limits

Did you know: Singapore already has one of the densest data centre capacities in the world?

Last year, I compared Singapore's data centre capacity against the top two nations in Asia. See how high it is relative to its GDP.

• Singapore at 1x GDP has 1,443 MW.
• Japan at 10x the GDP has 2,561 MW.
• China at 38x the GDP has 3,800 MW.

What's more, this holds whether by GDP, population, or land area.

Climate commitments mean Singapore simply cannot afford unrestrained power use by data centres, which already use up 7% of electricity here.

So, is it a checkmate for Singapore?

A vibrant data centre ecosystem

In my interview, I explained that Singapore and fast-growing Johor have different strengths that complement each other for a vibrant ecosystem that can benefit both.

• Singapore has a rich and mature data centre ecosystem, incredible subsea connectivity, and a deep pool of skilled data centre professionals.
• Johor has ample land, access to resources including renewable energy, and a very large pool of qualified workers that can be trained to operate data centres.

Together, Singapore and Johor together can punch far above their weight and shape the future of data centres in this part of the world.

In the meantime, Singapore is working hard to build sustainable data centres, has a plan to double subsea cable landings, and has allocated additional capacity for new data centres to capture new opportunities.