Singapore slated to remain as data centre of SEA

It currently has a capacity of 973 MW.

Singapore will remain the leading data centre hub for Southeast Asia, even with the city-state's stringent setup requirements and restrictions on new capacity.

Singapore currently holds a capacity of 973 MW. Despite an overall cap of 60 MW per year for new applications and renewable energy thresholds, the country remains the region's primary hub due to its open economy, political and power supply stability, and extensive regional undersea network infrastructure, Moody’s Ratings said.

However, Singapore’s limitations have driven spillover demand to neighbouring countries like Malaysia and Indonesia.

The country ended its three-year moratorium on data centre capacity expansion in 2022 and is furthering its efforts to meet new demands with energy efficiency guidelines.

On a regional perspective, Asia Pacific is set to be the fastest-growing market for data centres over the next five years with a compound annual average rate of almost 20% through 2028, with an investment of about US$564b.

In line with this, telcos can benefit from diversifying their revenue streams whilst income declines in legacy mobile businesses. Similarly, real estate firms could leverage on this growth to expand assets and revenue sources.

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Moody's Ratings

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