Singapore is inviting AI-ready low-carbon data centres in a new 200MW expansion round.
This second Data Centre – Call for Application (DC-CFA2) process marks the most significant opportunity to enter or expand into Singapore’s highly regulated market since Singapore’s introduction of a moratorium on the construction of new data centres in 2019. It is being followed closely by data centre developers and owners active in the APAC region, and will be hotly contested.
After an extended period of industry engagement, the Singapore Economic Development Board (EDB) and Infocomm Media Development Authority (IMDA) launched the DC-CFA2 on 1 December 2025. Applicants will have until 31 March 2026 to put forward projects that comply with ambitious strategic, economic and sustainability criteria.
At least 200MW of new capacity will be made available initially – potentially more if operators adopt new, innovative green energy sources. This signals Singapore’s continued commitment to sustainable data centre growth, and could add additional capacity of 10-15% to Singapore’s market. It follows the successful pilot program in 2023 that collectively allocated 80MW of capacity to Equinix, GDS, Microsoft and a consortium of AirTrunk and ByteDance.
An area of JTC land on Jurong Island has been identified as a potential site. With concerns over the readiness of Jurong Island for new data centres, applicants may look elsewhere to build. However, Jurong Island is clearly a strategically important location for the Singapore Government for future capacity.
How will Singapore assess applications? Key strategic, economic and sustainability criteria
The EDB and IMDA will assess applications on three key criteria:
- Strategic value: The government aims to partner with industry players to develop data centres that strengthen Singapore’s international standing as a trusted hub for AI and data centre investments, while also enhancing infrastructure resilience and international connectivity.
- Economic contribution: Project proposals should make significant contributions to Singapore’s economic objectives through investments in innovation, talent development and ecosystem partnerships.
- Sustainability leadership: Proposals must accelerate the use of green energy. Each proposed data centre must be at least 50% powered by eligible green energy sources – for example, biomethane, low-carbon ammonia or hydrogen, novel fuel cells with carbon capture technology, or on-site solar (including advanced vertical building-integrated photovoltaics).
How stringent are the technical and sustainability standards?
Compared to the 2023 pilot, DC-CFA2 introduces enhanced technical and sustainability requirements. Applicants are expected to meet or exceed the following standards for their new facilities:
- Achieve BCA-IMDA Green Mark for Data Centres 2024 Platinum certification for the proposed data centre.
- Attain a Power Usage Effectiveness (PUE) of 1.25 at full IT load – a tighter requirement when compared to the pilot’s 1.3 PUE target.
- Deploy equipment that exceeds the efficiency standards outlined in the Singapore Standard on Energy Efficiency of Data Centre IT Equipment (SS 715:2025).
These are among the most stringent data centre standards in the Asia-Pacific region. Many markets including Hong Kong, Japan and South Korea also set PUE thresholds as part of broader sustainability initiatives.
However, Singapore’s 1.25 PUE target at full load significantly outpaces these regional benchmarks. For context, Australia now requires data centres serving its federal government to meet a NABERS five-star energy rating (roughly equivalent to a PUE of 1.4). In other jurisdictions, low PUE are incentivised through various schemes rather than mandated.
How Singapore’s ability to impose demanding requirements stems from its unique market position
The government’s moratorium on new data centre construction was originally enacted due to very limited supplies of both land and energy. Singapore has finite space for data centres amid competing land uses. Data centres already account for over 7% of the country’s electricity consumption. These constraints mean Singapore can be highly selective, insisting on only the most efficient and sustainable new projects.
The first pilot Call for Application in 2023 (DC-CFA1) underscored the pent-up demand: 80MW of capacity was swiftly allocated to four operators (including hyperscalers and a consortium), with many other companies expressing interest. This outcome demonstrated the industry’s eagerness to invest in Singapore, a vital hub in the region, when given the opportunity.
This supply-demand imbalance also gives Singapore extraordinary leverage. Despite the restrictions, Singapore consistently ranks as one of the world’s most desirable locations for data centres, thanks to its robust fiber connectivity, strong cybersecurity framework, and availability of cloud services. There were over 70 operational data centres in Singapore as of recent years, representing roughly 60% of Southeast Asia’s total data centre capacity at that time. The moratorium-constrained supply, combined with strong demand, has created one of the tightest data centre markets globally – with vacancy rates reported to stand below 2%.
Data centres have emerged as one of the most significant asset classes for investment globally over the past decade.
Visit our APAC Data Centre Regulatory Guide for our ‘regulatory heatmap’ on the challenges and opportunities across the region, key themes you need to know, and to dive into detailed jurisdictional snapshots for 13 markets – including Singapore.
Why does DC-CFA2 matter? Our take
The launch of DC-CFA2 represents a strategic inflection point for Singapore’s data centre industry. The significantly enhanced sustainability requirements – particularly the mandate for 50% green energy sourcing and tighter PUE targets – align closely with Singapore’s Green Data Centre Roadmap (unveiled in May 2024) and its broader push for greener digital infrastructure. Singapore is signalling that any new capacity must contribute to innovation and growth without compromising environmental goals.
For potential applicants, success under DC-CFA2 will likely depend on demonstrating several strengths:
Given the limited capacity on offer and Singapore’s strategic importance as a data centre hub, interested operators should start preparing comprehensive proposals that address the strategic value, economic contributions and sustainability criteria in an integrated way. Early engagement with stakeholders (including potential energy and technology partners) may strengthen an application’s chances.
How we can help: KWM’s data centre practice
King & Wood Mallesons is at the forefront of legal advisory services in the data centre sector. We have a deep understanding of the regulatory and commercial environment surrounding the financing, construction, and operation of data centres – including addressing cutting-edge issues like cloud computing arrangements, big data considerations and energy efficiency measures in data centre projects. We can provide expert commercial and legal advice throughout the entire lifecycle of data centre projects (for site selection, to construction, financing and operations), whether you are a developer, investor, operator, supplier or end-user.
We are ready to assist data centre operators and offtakers in their expansion in various markets in Asia.
Want more information? Visit the IMDA's website for requirements and application contact details.
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