Market Trends of Singapore Data Center Construction Industry
The Tier 3 Segment Held the Maximum Market Share in 2023
- Singapore had 35 data centers with Tier 3 certification and a cumulative IT load capacity of 518.4 MW in 2023. Reliability and affordability are major factors driving demand for Tier 3 data centers in the country. This demand is projected to accelerate at an annual growth rate of 0.43%, reaching 718.76 MW by 2029.
- The majority of Tier 3 data centers in Singapore are in East Singapore, which hosts 38% of them, followed by West Singapore at 23.4% and the Rest of Singapore at 20.7%. In 2023, Keppel Data Center had six data centers, with the highest IT load capacity of 158.23 MW with Tier 3 certification, followed by Equinix Inc. Ltd with two data center facilities, with 67.7 MW, and AirTrunk with one data center facility with 62.40 MW IT load capacity.
- The country has two small, seven medium, nine large, and seventeen massive Tier 3 data centers. Three data center facilities under construction are being built to Tier 3 standards. Keppel Data Center, Singtel, and others are major Tier 3 data center construction players. The construction is projected to be more concentrated in East and West Singapore.
Understand The Key Trends Shaping This Market
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The BFSI Segment is Expected to be the Fastest Growing Segment
- Companies like Grab Holdings strategically collaborate to capitalize on the growing market. Its partnership with Singapore Telecommunications and GXS Bank offers digital banking services to the retail industry. Singaporean businesses Grab and tech company Sea have obtained "digital full bank" licenses, enabling them to accept deposits and provide local services to retail and corporate customers. They now serve more than 3 million customers.
- Several fintech startups are expanding the market by attaining strategic partnerships with cloud service providers to automate their respective payment portals. In April 2022, Wallet Engine partnered with Mambu to fast-track the development of its innovative wallet-as-a-service offering, which aims to become the go-to solution for embedding financial services into any app.
- The Singapore FinTech industry remains dynamic, a key economic expansion and financial innovation catalyst. In late 2022, Mr. Lawrence Wong, Singapore's Deputy Prime Minister and Minister for Finance, along with his role as Deputy Chairman of the Monetary Authority of Singapore (MAS), unveiled the updated Financial Services Industry Transformation Map (ITM) 2025. This revised ITM places a renewed focus on nurturing FinTech startups. Singapore, renowned for its openness and global appeal in FinTech, is expected to sustain industry growth despite a slight decline in funding in 2022 compared to the previous year. Thus, the rise of FinTech and online banking is expected to increase computing capacity and the data center market.
