A year of… carefully managed expansion, sustainability-led approvals and continued regional leadership
Singapore is the leading data centre hub in Asia, a title it has held for some time. It offers a stable, well-regulated and highly connected environment with strong submarine cable infrastructure, 100% foreign ownership permitted and targeted tax incentives.
Singapore remains a preferred regional base for hyperscalers and enterprise operators serving Asia. The government supports cross-border data flows and aligns closely with international standards, reinforcing its position as a top-tier digital infrastructure market.
Singapore tightly controls new data centre developments, requiring strict energy and water efficiency standards. In 2023, 80MW was allocated to Equinix, GDS, Microsoft and the AirTrunk-ByteDance consortium. It allocated a further 200MW in 2026, shared equally between Digital Realty, Equinix, Keppel Data Centres and ST Telemedia Global Data Centres. Despite land and power constraints, major operators continue to see Singapore as a critical location to invest. The government has earmarked 20 hectares on Jurong Island for a 700MW green data centre park.
Data centre statistics provided by DC Byte.
Spotlight on key drivers
Following the lifting of Singapore’s 2019 moratorium, the government introduced the Data Centre Call for Application (DC-CFA) scheme to regulate growth based on sustainability, strategic value and economic contribution.
The gap between the pilot DC-CFA1 in 2023 and DC-CFA2 created a supply constraint. While the DC-CFA scheme ensures only high-impact, efficient projects proceed, it also limits new market entry. Following the allocation of capacity under DC-CFA2 in August 2026, the Economic Development Board (EDB) and Infocomm Media Development Authority (IMDA) will continue to engage industry stakeholders and review the need for another CFA in 18 to 24 months, to support Singapore’s strategic priorities.
Singapore has made sustainability a strategic priority for data centres, requiring green certifications under its Green Data Centre Roadmap.
Operators must meet strict energy efficiency, decarbonisation, and water usage standards, aligned with national environmental goals. Certification under frameworks like the BCA-IMDA Green Mark for Data Centres (GMDC) is increasingly expected, and green energy procurement is becoming a competitive differentiator. Platinum certification, the highest tier, is a requirement for DC-CFA2.
Applications for DC-CFA2 were also required to meet sustainability requirements. While these requirements may raise upfront costs, they position operators to align with both regulatory expectations and the ESG priorities of global tenants and investors.
Despite Singapore’s advanced infrastructure, data centre growth is constrained by limited land availability and tight power allocations.
These factors result in long lead times for approvals and grid connections - particularly for high-capacity facilities. Investors must plan for competition in securing resources and they are increasingly looking to Malaysia, Indonesia and Thailand instead.
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