Singapore approves 200MW data centre capacity expansion for four operators

Nicholas Hanna of Pinsent Masons MPillay was commenting after Digital Realty, Equinix, Keppel Data Centres, and ST Telemedia Global Data Centres were each provisionally allocated 50MW of new data centre capacity, with some of these supported data centres to be located on Jurong Island.

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• Factors shaping data centre development in Asia Pacific

The four successful bidders were among more than 20 projects that bid for the capacity through a competitive process: the second Data Centre – Call for Application (DC-CFA2) exercise was overseen by the Singapore Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA).

The authorities confirmed the four projects had been selected “for their ability to holistically meet the desired outcomes of DC-CFA2 across strategic, economic, and sustainability components”. Specifically, they referenced how the projects would enhance Singapore’s advanced compute capabilities for technologies such as AI, facilitate research and development via collaborations with Singapore-based partners, meet at least half of the new facilities’ power consumption via “green energy”, and deliver “best-in-class energy efficient performance” – including through the adoption of liquid cooling.

Hanna said: "The result of DC-CFA2 is a meaningful development for anyone operating in, investing in, or looking to enter Singapore's data centre market. What stands out is not just the scale of the capacity being released, which at 200MW is more than double the 80MW allocated under the first call for application which was launched in 2022, with allocations awarded in 2023, but the seriousness of the criteria attached to it. Singapore is making clear that access to capacity here comes with real obligations: on technology, on economic contribution, and on green energy.”

“For clients who are investors, acquirers, or strategic partners in these areas, the practical implication is that these commitments will need to be understood, allocated, and accounted for at the transaction level. Green energy obligations, R&D partnership arrangements, and infrastructure development timelines are no longer peripheral considerations in a data centre deal in Singapore. Instead, they sit at the centre of it,” he said.

Hanna has previously highlighted how Singapore is one of the most trusted hubs for data centre development in Southeast Asia but how approvals for new developments are carefully rationed amidst a lack of available real estate and concerns over sustainability. The capacity crunch in Singapore has been to the advantage of other markets in the region, including Malaysia.

On the prospect of further data centre development being approved in Singapore in future, EDB and IMDA confirmed that they will review the need for another call for application within the next two years, to support Singapore's strategic priorities.