Singaporean data center market is set to achieve a value of $5.14 billion by the year 2028, an increase from its $4.2 billion valuation in 2022. This growth trajectory corresponds to a Compound Annual Growth Rate (CAGR) of 3.41% spanning the years 2022 to 2028.
Following the lifting of the moratorium in 2022, Singapore’s data center market is projected to attract investments. The country witnessed the active participation of key colocation operators last year that include BDx, Keppel Data Centres, ST Telemedia Global Data Centres, and Princeton Digital Group. These entities have been engaged in the development of operational and ongoing data center projects within the Singaporean data center market.
The data center investors listed in the report include AirTrunk, Amazon Web Services (AWS), Big Data Exchange (BDx), China Mobile International (CMI), DODID, Digital Realty, Equinix, Facebook (Meta), Google, Global Switch, Iron Mountain, Keppel Data Centres, Microsoft, NTT Global Data Centers, Princeton Digital Group (PDG), Singtel, ST Telemedia Global Data Centres and Telin Singapore.
The government has been playing an active role in ensuring the country remains as a hub for data centers in the region. In July, Singapore’s Economic Development Board (EDB) and Infocomm Media Development Authority (IMDA) revealed plans to grant approximately 80 MW of additional capacity to four data center operators through the initial Data Centre – Call for Application (DC-CFA) program.
The four data center operators awarded include Airtrunk-Bytedance, Equinix, GDS, and Microsoft as they were best able to meet the desired outcomes holistically, and had significantly competitive propositions to strengthens Singapore’s position as a regional hub.
This initiative is part of Singapore’s endeavor to foster the expansion of data centers, thereby bolstering the nation’s digital economy in an environmentally sustainable manner that aligns with their climate change commitments.
The country also launched new standards for data centers to support the growth of compute capacity while ensuring environmental sustainability. Moreover, Singapore is embarking on a significant project called the Digital Connectivity Blueprint to enhance its internet and technology infrastructure.
Singapore aims to reinforce its status as an open economy and highly connected hub in Asia by increasing the number of submarine cable landing facilities. Singapore’s government has also unveiled an extensive series of collaborations with Google Cloud to drive the advancement of Artificial Intelligence (AI) capabilities in the country particularly in the public sector.
This strategic push by the government is partly underpinned by the strong demand for private and hybrid cloud services, not only within Singapore, but also across neighbouring Malaysia. In January, Singapore & Malaysia signed agreements that focused on the digital economy and green economy.
