Singapore Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

Singapore Data Center Market Analysis

The Singapore Data Center Market size is estimated at 1.02 thousand MW in 2025, and is expected to reach 1.16 thousand MW by 2030, growing at a CAGR of 2.48%. Further, the market is expected to generate colocation revenue of USD 1,068.8 Million in 2025 and is projected to reach USD 1,599.3 Million by 2030, growing at a CAGR of 8.40% during the forecast period (2025-2030).

Singapore's data center industry is undergoing a significant transformation driven by sustainability imperatives and energy efficiency concerns. Currently, data centers account for approximately 7% of Singapore's total electricity consumption, with projections indicating this could rise to 12% by 2030. Leading operators are actively implementing innovative solutions to address these challenges, as exemplified by STT GDC's achievements in improving their Power Usage Effectiveness (PUE) by 4% and Water Usage Effectiveness (WUE) by 18% in 2022. The industry is witnessing increased adoption of district cooling systems and Power Purchase Agreements (PPAs) as operators strive to balance growing demand with environmental responsibility.

The market is experiencing robust data center growth in the startup ecosystem, which is driving demand for data center services. As of 2022, eleven Singapore-based startups achieved unicorn status, bringing the total to twenty-two. This growth is further evidenced by the 517 deals recorded in the first nine months of 2022, amounting to SGD 11.35 billion in total funding, according to Enterprise Singapore. The surge in startup activity has created increased demand for scalable and flexible data center solutions, particularly in the wholesale and hyperscale segments.

Digital transformation across industries is reshaping the data center market landscape, with a particular focus on advanced manufacturing and innovation hubs. A notable development is the establishment of the Hyundai Motor Group Innovation Center in Singapore (HMGICS), which serves as a testbed for Industry 4.0 technologies including robotics, 5G, artificial intelligence, and IoT. The facility exemplifies Singapore's commitment to becoming a leading smart manufacturing hub, driving increased demand for high-performance computing and data processing capabilities.

The market is characterized by a strong focus on operational excellence and technological advancement, particularly in cooling technologies and infrastructure efficiency. Industry players are actively exploring innovative cooling solutions, including the use of cold energy from the Singapore LNG Terminal and the development of floating data center parks that utilize seawater for cooling. These initiatives align with the government's strict infrastructure norms for new data centers, implemented following the lifting of the moratorium. Additionally, the digital maturity of businesses continues to evolve, with 54% of SMEs at the starter level of digital maturity in 2022, indicating significant potential for future growth in data center services demand.

Singapore Data Center Market Trends

Growing application of connected devices and smart homes to boost the market demand

• The country has a smaller population compared to other Southeast Asian countries, owing to which the number of smartphone users is comparatively lesser than the rest.
• The country is expected to grow significantly and reach 6.21 million users by 2029, from 5.4 million users in 2022.
• According to Hootsuite, the country has a 100% urbanized population with 8.7 million cellular mobile connections, accounting for 147% of the population. This data suggests that each citizen in the country owns more than one cellular device. The growing application of connected devices and smart homes also boosted the demand for digital data and increased network traffic. Such factors are anticipated to increase the number of smartphone users in the country.

Singtel's expanding 5G network in partnership with Ericsson boost the data center demand

• Singapore was one of the early adopters of the 5G network in 2020, while the presence of 2G was decommissioned as early as 2016. As of 2022, 4G dominated the market with 49.7 Mbps, while its speed is expected to reach 54.75 Mbps by 2029.
• The country's 5G network is booming and is expected to reach 946.04 Mbps by 2029. 5G networks and services are expected to form the backbone of growth in the telecom sector over the coming years as service providers seek new ways to engage customers in a market that is otherwise already saturated.
• Singtel is ramping up its 5G standalone (SA) deployment in Singapore by expanding the network and developing new 5G use cases in partnership with Ericsson. In a press release, the Swedish vendor stated its plans to power Singtel’s 5G SA network with 5G radio access products and cloud-native dual-mode 5G Core network solutions. In September 2021, Singtel confirmed that its 5G network covers over two-thirds of Singapore. New 5G sites were added in densely populated areas like Choa Chu Kang, Punggol, Sembawang, and Tampines.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: Data Center Size

Massive Segment in Singapore Data Center Market

The massive data center segment dominates the Singapore data center market, commanding approximately 56% data center market share in 2024. With an IT load capacity of around 496 MW, massive data centers are primarily concentrated in West Singapore, which hosts over 40% of these facilities, followed by East Singapore and the rest of Singapore with 30% each. Leading operators like Equinix Inc., Keppel Data Center, and STT GDC Pte Ltd are actively expanding their massive data center footprint in the region, with plans to launch new facilities having IT load capacities ranging from 27 MW to 56 MW. The segment's dominance is further strengthened by local governments offering various incentives and benefits related to tax, electricity, and land costs.

Small Segment in Singapore Data Center Market

The small data center segment is projected to demonstrate the most robust growth in the Singapore data center market from 2024 to 2029, with an expected CAGR of approximately 31%. This remarkable growth trajectory is primarily driven by the increasing adoption of edge computing and the need for localized data processing capabilities. Currently, Singapore has one small data center owned by INAP, but the segment is poised for expansion with Keppel Data Center's plans to construct new small facilities in various regions of Singapore. Despite the growing popularity of 5G technology driving demand for massive and mega data centers, small data centers are finding their niche in serving specific industry requirements and edge computing needs.

Remaining Segments in Data Center Size

The remaining segments in the market include mega, large, and medium data centers, each serving distinct market needs. Mega data centers are particularly significant in East Singapore, catering to hyperscale requirements and large-scale cloud operations. Large data centers maintain a strong presence across all regions, offering balanced capabilities for enterprise-level requirements. Medium data centers, predominantly concentrated in West Singapore, serve specific industry verticals with specialized needs. These segments collectively contribute to Singapore's diverse data center ecosystem, ensuring comprehensive coverage of various business requirements and technological demands.

Segment Analysis: Tier Type

Tier 3 Segment in Singapore Data Center Market

The Tier 3 segment dominates the Singapore data center market, commanding approximately 69% market share in 2024. This significant market presence is attributed to the segment's optimal balance between reliability and cost-effectiveness, making it particularly attractive for enterprise-level deployments. The majority of Tier 3 data centers in Singapore are concentrated in East Singapore, which hosts nearly 48% of these facilities, followed by the rest of Singapore at 23% and West Singapore at 29%. Major players like Keppel Data Center and STT GDC Pte Ltd are actively expanding their Tier 3 certified facilities across these regions, with four new data center facilities currently under construction built to Tier 3 standards.

Tier 4 Segment in Singapore Data Center Market

The Tier 4 segment is experiencing the most rapid growth in the Singapore data center market, projected to grow at approximately 13% during 2024-2029. This remarkable growth trajectory is driven by increasing demands for fault-tolerant infrastructure and the highest levels of data center reliability. The segment's expansion is further supported by Singapore's focus on efficient data center operations, with operators investing in modern infrastructure and cooling techniques. Companies like STT GDC Pte Ltd, Equinix Inc., and Digital Realty Trust are leading this growth with their Tier 4 certified facilities, while other major players like Equinix Inc. and NTT Communication are planning to construct new mega data centers with Tier 4 certification.

Remaining Segments in Tier Type

The Tier 1 & 2 segment represents the basic level of data center infrastructure in Singapore's market. While these facilities offer lower redundancy levels compared to their higher-tier counterparts, they continue to serve specific market niches where cost-effectiveness takes precedence over advanced reliability features. These facilities are primarily concentrated in East and West Singapore, catering to businesses with less demanding uptime requirements or those using these facilities as secondary backup locations. The segment maintains its relevance in the market by offering more economical solutions for small and medium enterprises that don't require the advanced features of higher-tier facilities.

Segment Analysis: Absorption

Utilized Segment in Singapore Data Center Market

The utilized segment dominates the Singapore data center market, accounting for approximately 84% of the total IT load capacity in 2024, equivalent to around 737 MW. This segment's strong performance is driven by increasing data center facilities' occupancy rates and the onboarding of additional firms across various industries. The segment is projected to maintain its growth momentum with an expected growth rate of nearly 5% during 2024-2029, driven by the relocation of cloud hyperscale data centers and the expanding e-commerce market. Singapore's position as a significant e-commerce hub in Asia, with more than 3 million e-commerce users and the largest shopping cart size among Southeast Asian countries at USD 67.40, continues to fuel the demand for utilized data center capacity. The high internet penetration rate of 98%, smartphone penetration rate of 93%, and online purchase rate of 58% of residents further necessitate the usage of more servers, contributing to the segment's dominance and growth trajectory.

Non-Utilized Segment in Singapore Data Center Market

The non-utilized segment represents the remaining portion of Singapore's data center market, showing a declining trend as data center operators focus on maximizing efficiency and utilization rates. This segment plays a crucial role in maintaining operational flexibility and allowing for future expansion capabilities within existing facilities. Data center operators are implementing sophisticated capacity planning strategies and advanced infrastructure management systems to optimize the balance between utilized and non-utilized capacity. The segment serves as a buffer for rapid scaling requirements, particularly important for hyperscale facilities and cloud service providers who need to maintain headroom for unexpected demand surges. Additionally, the non-utilized capacity helps facilities maintain optimal performance levels and provides the necessary space for implementing new technologies or upgrading existing infrastructure without disrupting ongoing operations.

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