The Reason Why Data Center Expansion In Singapore Halted

 The reason why data center expansion in Singapore halted is because of the moratorium on land reclamation. Prime Minister Lee Hsien Loong announced the suspension in his National Day Rally speech on 31 August 2010.

 

The moratorium will last for at least three years and is expected to affect the growth of the data center industry in Singapore.

 

The government has been reviewing its land-use policy to ensure that the country's land resources are efficiently used while protecting our green spaces and heritage sites.

 

The Land Use Plan (LUP) is a comprehensive plan that details how land will be used over the next 30 years. It provides information about how much space is available for various uses, such as housing and office buildings, as well as parks and other open spaces for recreational use by citizens.

 

There are currently two LUPs: one for Singapore's northern region and another for Singapore's southern region. The northern LUP is slated to expire in 2021 and will be replaced with a new one, while no such replacement has yet been set out for the southern LUP."

 

The news comes as a shock to the local market, which was expecting more than 1 million square feet of new capacity to be commissioned this year, according to JLL Research. The real estate firm predicted that the local market would add 19MW of new capacity by 2020, up from 2MW.

 

Singapore Data Center Carbon Footprint

The official reason given by the government was that there is no need for additional data center capacity at this time because Singapore has enough space to meet the current demand. This is also backed up by recent reports showing that only about 20% of existing data center capacity is utilized at any given time, suggesting there is little need for additional facilities.

 

However, some analysts believe this decision could be other reasons, such as the desire to avoid overcapacity or perhaps even concerns over carbon emissions. Although it isn't clear if these factors played a role in the decision-making process, they are worth considering when looking at this situation from an environmental perspective.

Singapore is a global hub for data center expansion, but the pace of growth has slowed in recent years. The nation's data center carbon footprint was estimated at 13 million metric tons in 2022 — almost double the size of its entire economy — and the government is taking steps to reduce that.

 

The Singapore government announced plans to reduce carbon emissions by 30 percent from 2005 levels by 2030 as part of its commitment to the Paris Climate Agreement. To meet that target, they've identified several sectors that need to be addressed: transportation, construction, food production, and energy usage. If nothing is done, Singapore's carbon footprint could increase by 10 million metric tons by 2030.

 

Data Center Expansion Problem

The growth of the data center sector in Singapore has been hampered by a shortage of land and human resources, according to a report by the Infocomm Media Development Authority (IMDA).

 

The country's data center space currently stands at around 17.5 million square feet, or 2.3 million square meters. This is expected to grow to 28 million square feet (2.8 million square meters) by 2020 and 44 million square feet (4 million square meters) by 2025.

 

Data centers are facilities where large amounts of information are stored and managed, including e-mail messages, social networking posts, video clips, and other content accessed via the Internet. The IMDA said that the sector contributed S$4 billion ($3 billion) to Singapore's economy last year and employed 23,000 people. However, its growth has been hampered by a lack of land supply and human resources shortages.

 

The government agency said it is reviewing ways to address these issues, such as through more efficient use of existing space or more flexible working arrangements with companies that operate such facilities. It also plans to review policies related to training programs for data center technicians and other professionals who work in this industry.

 

Conclusion

Singapore has a land scarcity problem, so it is unlikely that any new data centers will be built within the next few years. If you are considering a building or expanding your existing data center in Singapore, then it may be better to start planning for another location instead.