Singapore Data Center Market: $5+ Billion Industry by 2028, Fueled by Green Initiatives

19 Aug, 2023

Singapore Data Center Market: $5+ Billion Industry by 2028, Fueled by Green Initiatives

The Singapore data center market is anticipated to achieve a valuation of $5.14 billion by 2028, up from $4.2 billion in 2022, with a steady Compound Annual Growth Rate (CAGR) of 3.41% spanning the years from 2022 to 2028.

This comprehensive report thoroughly examines the market share of Singapore's data center industry. It conducts a detailed analysis of the existing and upcoming data center facilities, as well as investments in IT, electrical, and mechanical infrastructure, along with general construction and tier standards. The report delves into market sizing and offers estimations of investments across various distinct segments.

Following the lifting of the moratorium in 2022, Singapore's data center market is anticipated to resume attracting investments. The expectation is that within the span of 2-3 years, investments will exhibit positive growth. The investments made in the year 2022 were largely influenced by projects already in progress or announced prior to the moratorium's initiation within the country.

In relation to data center applications, the Infocomm Media Development Authority (IMDA) and the Economic Development Board (EDB) have stipulated specific criteria. This includes the requirement for data center projects to attain a Power Usage Effectiveness (PUE) of 1.3 or less for a full 100% IT load capacity. The government has also established a goal of achieving 2 Giga-peak (GWp) of renewable energy by 2030. Additionally, Singapore has plans to import up to 4 GW of green energy by the year 2035, sourced from neighboring countries Cambodia and Indonesia.

The government offers economic zones known as free trade zones, which provide businesses with beneficial customs and tax concessions. Noteworthy examples of these free zones include Tanjong Pagar Terminal, Keppel Terminal, Keppel Distripark, Keppel Distripark Linkbridge, Pasir Panjang Terminal, Jurong Port, and several others situated within Singapore.