In 2024, modern and greener data centres will play a pivotal role in powering Singapore’s digital economy. The rapid adoption of AI technology and the rise of tools, such as ChatGPT, has fuelled an unprecedented surge in demand for data centre space over the past year. Service providers need to cope with and support this demand in a sustainable manner.
“In Singapore, where limited power availability is a known issue, the government has begun imposing data centre power quotas on utility firms and upping their demands around renewable power requirements. ”
Pieter Kraan, Managing Director, Leaseweb Singapore
In Singapore, where limited power availability is a known issue, the government has begun imposing data centre power quotas on utility firms and upping their demands around renewable power requirements. This is an issue that is not isolated to Singapore. Increasingly, governments across the world are implementing similar restrictions and requirements for data centre providers.
As organisations battle the escalating demand for data centre capacity combined with a worldwide shortage of power, the race to innovate is on. But what does this mean for the data centre industry in Singapore?
Sustainability will lead the charge
In 2024, as environmental concerns take centre stage, sustainability is becoming a non-negotiable aspect of data centre development. As such, numerous companies and governments have implemented ambitious sustainability goals, including Singapore. The nation’s commitment to energy efficiency, coupled with innovative cooling technologies will likely shape the region in the coming year. In fact, the Singaporean government has already pledged to allocate more capacity in the next 12 – 18 months to advance its interest as an innovative, sustainable, global digital hub. Similarly, Singapore’s commitment to a roadmap for green data centres aligns with its target to achieve net zero by 2050.
A surge in IoT
The anticipated surge in cloud services and the Internet-of-Things (IoT), in part caused by the boom of AI tools like ChatGPT, will likely shape Singapore’s data centre landscape in 2024. With cloud providers expanding their presence to cater to increasing demands, the need for data centres is set to grow. The proliferation of IoT devices, from smart appliances to industrial sensors, generates massive volumes of data that require efficient processing and storage. Singapore’s well-established infrastructure and strategic positioning will make it an attractive destination for companies seeking to leverage these technological trends.
Private cloud will continue to gain momentum
Last year saw the need for more predictable and forecastable pricing structures driving a growing number of business decision makers to rethink their reliance on hyperscale public cloud providers. In the current economic climate, it is no surprise that more businesses are now choosing highly flexible hybrid and multi-cloud options. Added to this, many tech leaders now have the skills and confidence that are required to optimise how cloud works best for their business, whether this is fine tuning performance on a daily basis to achieve a balance between cost and flexibility or giving departments more direct control over their own cloud services.
In 2024, expect more organisations to accelerate their multi-cloud strategies in a bid to manage their total cost of cloud ownership and gain the freedom to pick and choose the services they need. This move means that data centres will need to be prepared for deep and far-reaching conversations around data privacy and security with customers.
New tech innovations will allow for greater efficiency
The emergence of technologies like AI is opening new doors for optimisation and automation that will deliver better cost control and quality for customers. These advances represent a major transformation that is redefining how data centres operate and serve customers. Today, tools like predictive analytics are already enabling the automation of operations, improved resource management, and enhanced energy and water usage efficiency in line with aggressive sustainability performance targets. AI-based solutions can also deliver insights that improve operational decisions like workload management and capacity planning.
2024 and beyond will see Singapore’s data centre growth trajectory characterised by increased demand, heightened sustainability and a steadfast commitment to technological innovation. As digitalisation continues to reshape industries, Singapore stands ready to solidify its position as a global leader in data centre development.
