The country’s new data center development is halted as the government scrambles to address an energy crisis. The Singapore government has issued a moratorium on new data center projects while it addresses an ongoing energy crisis.
The island state relies heavily on natural gas pipelines from Indonesia and Malaysia. However, due to the high demand for natural resources in these countries, the pipeline is under pressure to supply both Singapore and its neighbors.
Singapore Data Center Development After Moratorium
Singapore needs more access to the land and the enormous amounts of energy required for data centers. She thinks the government utilized the ban to make a solid statement for businesses. They state that it focuses on addressing the demand for high-quality data centers rather than a large number of them. Their primary focus is on the data center quality, and they are not seeking quantity. This thing is considerable in this regard.
Singapore has served as South Asia’s primary data center hub for more than ten years. Due to the alignment of this with its economic plans. The government has also been very proactive in incentivizing technology companies to locate their operations in Singapore.
Singapore has transformed into a microcosm for the global shift to green data centers after the city-state partially lifted its three-year ban on new buildings. First off, data centers account for over 7% of Singapore’s electricity usage. One of the most critical data hubs in the Asia Pacific. Singapore’s contribution to global carbon emissions is about 200 times more than the percentage of its geographical area worldwide.
Data center development must be moderated. Second, Dai says, Singapore will continue to face challenges from floodwaters and increasing sea levels because of its tropical climate. We are making it even more challenging to meet its sustainability needs.
After three years, the government has indicated that the ban would soon be lifted. After new regulations are published that impose stringent energy efficiency standards on all future locations for data centers, what transpires in Singapore over the following months might pave the way for a more significant shift in global data center development. Other countries like Japan and others are also seeking green data centers.
Prospective Green Data centers serve as essential infrastructure for Singapore’s government and technological enterprises. Most of the undersea cables that enter the nation are partially owned by its investment arm, Temasek, and are essential to the operation of data center development. Temasek also happens to be a significant investor in tech firms. Given this tight connection, data centers are necessary for Singapore’s economic success.
The state continues to be the largest landlord in the nation since land is the most valuable asset in Singapore. The state decides what kind of industrial and economic. Or residential use of land will be allowed for its strategic national development plan through land use policies and regulations.
Singapore Has No Energy Source
Singapore produces few renewables and imports most of its gas-based electricity from Malaysia and Indonesia. In 2015, the government publicly disclosed that data centers accounted for 9% of Singapore’s overall energy use, including projections that this would reach 12% by 2020. Its possible energy use may have even exceeded its target, though obtaining up-to-date data is difficult.
Until recently, the government dealt with data centers and electricity use with incentives rather than penalties. They provided several tax breaks, urged businesses to submit applications for green buildings, and made financing available for energy-efficient data center development.
Singapore is moving forward with sustainability initiatives like the rest of the globe and protecting itself from the adverse effects of climate change. Flooding and increasing sea levels are crucial challenges for a city-country located in a tropical area. As a result, it only makes up 0.0005% of the planet’s surface. It generates 0.11% of the world’s carbon emissions. 2019 saw Singapore enact a ban on brand-new data centers.
New data center projects have yet to get a permit except for the partnership between Singapore Press Holdings (SPH) and Keppel Corporation to build and run a new data center inside the former’s Genting Lane premises.
Excessive Energy Consumption
A moratorium on new data centers was imposed in Singapore due to the excessive energy consumption of Data center development and the difficulties associated with becoming green in a tropical nation. Data centers consume approximately 7% of the nation’s electricity usage.
However, demand for Data center development is rising as cloud companies, telecommunication, and international corporations grow in Southeast Asia. Asia anticipates surpassing Europe as the world’s largest market for data center capacity over the coming decade as the digital infrastructure sector in the area expands relentlessly.
Energy-efficient data centers can’t address this issue
The aim also includes making data centers operate considerably more effectively. Although achieving low PUE in Data center development is hardly a novel endeavor. Less attention has been paid to the difficulties associated with tropical temperatures and more to utilizing the natural advantages of cooler regions.
Infocomm Singapore’s Development Authority
Then-Infocomm Singapore’s Development Authority (IDA) announced a trial of a low data center as a workaround. The goal was to persuade CIOs and data center managers that higher temperatures in humid tropical climates can be maintained without degrading reliability or performance. Some sources say the experiment was successfully finished despite an initially delayed start.
Singapore is playing the long game with a comprehensive, multi-pronged strategy to harness renewable energy and improve energy efficiency in data centers. With enough time, the required technological advancements, and the proper regulations, it may strengthen its position as Asia’s Data center development powerhouse while keeping sustainability in mind. Additionally, much of the expertise may be transferred to other nations dealing with similar problems, thus paying for itself.
Different research looked into the viability of erecting a data center taller than 20 stories, even though saving land is the primary purpose. A secondary goal is investigating how a high-rise data center’s internal design and architecture can help cut energy use or boost efficiency. What transpired after that is unclear. Additionally, the nation is investigating floating Data center development. Seawater cooling, however, is promoted as a way to conserve land. It would be a seductive possibility for a floating data center park.
Data Center Expansion to Indonesia
Energy concerns have halted the development of new data centers in Singapore and expansion plans from existing providers, which primarily rely on power from neighboring Indonesia and Malaysia. In light of such developments, Singaporean investors are looking elsewhere for opportunities.
Indonesia has the world’s most prospective green data center market since it has more than 205 million internet users and abundant natural resources.
In October, the country’s economic growth fell below expectations due to a slowdown in its manufacturing sector and continued weakness in the retail industry. The unemployment rate rose to 4.5% from last year’s 3.2%, which is not high compared to other developed economies.
However, many workers continue to pressure the government for higher wages, prompting concerns that an increase could lead to inflationary pressures, discouraging companies from investing in new projects in Singapore.