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Iran war pressures Singapore’s tech sector to focus on energy efficiency, diversification

Current operations of semiconductor and data centre players are largely unaffected due to existing contracts and inventory buffers

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Young Zhan Heng

Young Zhan Heng

Published Mon, Apr 6, 2026 · 07:37 PM
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    • Data centre operators should expect some near-term pressure on margins, but the impact will vary depending on the operating model and power-contracting structure.
    • Data centre operators should expect some near-term pressure on margins, but the impact will vary depending on the operating model and power-contracting structure. PHOTO: PIXABAY

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    [SINGAPORE] Logistical bottlenecks and escalating freight costs are among the challenges being faced by players in Singapore’s technology sector.

    As a result, the semiconductor manufacturers, data centre operators and other tech players in Singapore are leaning further into contingency strategies to cope with the issues thrown up by the Middle East conflict.

    These include diversifying supply chains, improving material usage efficiency and exploring recycling where possible.

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