The phenomenon of overcrowded data centers in Singapore led to a moratorium that halted the development of new data centers. The Singapore government took this policy because they realized the need for energy was increasing and building a power plant from renewable energy would take a long time.

Overcrowded Data Center in Singapore

Singapore is playing a long-term game with its multifaceted approach. To utilize renewable energy sources and improve data center energy efficiency, as there are overcrowded data centers. With sufficient time, the required technology breakthroughs, and the appropriate standards. It may solidify its place as Asia’s data center hub while keeping sustainability in mind. In addition, many of the abilities might be used by other nations facing similar issues, enabling them to pay for themselves.

However, overcrowded Singapore data center facilities have halted this new data center. The Information and Communication Ministry stated that the current data centers are already operating beyond their planned capacity and urgently need to build new ones. The Ministry also reported that the construction of a sixth data center would be decided soon, but in the meantime, it was concluded that more data centers should be delayed till the bans were over.

Lifting The Ban For New Data Centers

Singapore’s government would finally relax the moratorium on new data centers. The government, however, also makes it clear that it won’t be lenient about these facilities. Energy efficiency requirements are overcrowded data centers must be met for data centers under construction within their boundaries.

The Singaporean government opted to establish more robust environmental requirements for new digital infrastructure to eliminate in their city after finishing an industry evaluation of the data center sector. According to the statement, the nation promotes data center investments.

The Terms For New Data Centers in Singapore

Singapore is moving forward with sustainability initiatives like the rest of the globe and protecting itself from the adverse effects of climate change. Flooding and increasing sea levels are crucial challenges for a city-country located in a tropical area. As a result, although it only makes up 0.0005% of the planet’s surface, it generates 0.11% of the world’s carbon emissions. To lower its carbon emissions, Singapore imposed a ban on the construction of new data centers because Singapore is overcrowded with data centers.

Limiting Capacity

The government of Singapore has loosened up, easing the restriction on new data centers. But with conditions like capping new facilities’ power output at about 5 megawatts. The moratorium was a wise move to reduce the growth rate and give people time to consider sustainability concerns and the difficulties the electrical grid network faces.

The capacity ceiling might be adequate for retail operators. The sector’s efforts in 2022 were crucial in aiding the government in developing a framework that will permit the industry to build new data centers while guaranteeing that Singapore reaches its climate change mitigation ambitions in the upcoming years due to overcrowded data centers. This is recorded according to the research done.

The wealthiest nation in Southeast Asia had 70 data centers with a combined energy capacity of 1,000 megawatts as of last year. Government statistics show that, up from 5.3% in 2019. These server-hosting operations consumed nearly 7% of the nation’s total electricity in 2020.

Flexible Choices For The Data Centers

The focus of new laws should be on enabling operators to create “truly green and sustainable” facilities. Singapore’s overcrowded data centers are currently investigating the viability of developing a floating data center park directly cooled by the water while protecting the island’s limited land resources.

If the government sets a ceiling on how much energy each facility can use. It will push operators to purchase a variety of projects to fulfill their capacity requirements, which will only worsen the country’s problems, given the country’s limited number of available locations.

National Development’s Green Mark

The Ministry of National Development’s Green Mark for Data Centers program, the Resource Efficiency Grant for Energy, and the Investment Allowance for Reducing Emissions schemes. Which reward businesses for achieving energy efficiency. These are just a few green certifications and incentive programs promoting data center sustainability established in Singapore.

Singapore is APAC’s top data center and the second-best market globally, behind northern Virginia. According to Cushman & Wakefield’s 2022 Data Centre Global Market Comparisons report, which was released this week. The paper claims that despite the restrictions, Singapore’s overcrowded data centers beat its regional rivals, Sydney and Hong Kong.

The data center market is growing at a CAGR of 16%, making the Singapore government increasingly aware of the importance of balancing energy needs in the country.

Harnessing Renewable Energy Sources

One of the plan’s goals would be to obtain as many renewables as is practical. Due to overcrowded data centers, Singapore plans to increase its solar capacity by even more than seven times by 2030.

It is reaching a maximum of 2 gigawatts (GWp). Therefore, it concentrates on making the most of the solar panel installation on the available surface. Such as the vertical surfaces of buildings, reservoirs, and even seabeds.

Power purchase agreement (PPA)

A 25-year power purchase agreement (PPA) has already been signed with the Public Utilities Board, the nation’s water regulator, for a 60MW floating solar project envisioned for Tengah Reservoir. On the other side, Facebook has signed a 100MW power purchase deal. With a business building a $1 billion 150 MW data center scheduled to debut in 2022.

What if it can import energy from nations using renewable energy sources?

On this front, the Singapore Energy Market Authority (EMA) claims it plans to release a Request for Proposal (RFP). By March of next year, for the importation of 100MW of power from Malaysia. Singapore hopes the two-year trial phase will help it understand the market and spot technological problems.

In a separate deal, renewables from Australia will use to power a large 10-gigawatt solar project built in the nation. It’s challenging to picture Singapore not taking it seriously, even though many obstacles exist.

Not the least is the cost and durability of a 4,500-kilometer underwater transmission network. Finally, Singapore’s overcrowded data centers are expanding their understanding of using hydrogen as a fuel source for data centers. A Memorandum of Understanding was inked last year.

Making It All Work Together

Without question, overcrowded data centers’ best course of action is to use various renewable energy sources, such as hydrogen, solar energy, and cold energy. But creating a data center by combining them is a very different story. An agreement was signed between SP Group, CapitaLand of Singapore, and Sembcorp to study the use of integrative energy for data centers. CapitaLand’s recently renovated data center serves as the first test site.

The knowledge base will likely expand using the lessons learned to create green overcrowded data centers. That can utilize the numerous technologies currently under development. These standards will then become helpful in developing new, environmentally friendly facilities.


Singapore recently announced a moratorium on new data centers, except those that are part of an existing industrial park or already in the planning stages. This move will allow Singaporeans to further assess the need for more data centers under various circumstances.

The government is reconsidering its position regarding data centers, and no new applications or requests for information will be accepted until further notice. This report from the “Straits Times” indicates that the move to halt these facilities. In addition, the government has recently published a white paper detailing several initiatives to encourage data centers to be more efficient and use renewable energy.

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