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Singapore data centre industry likely to focus on AI niche for computational efficiency: experts

With the government’s latest road map, data centres will be better placed to serve higher-value workloads 

Yong Jun Yuan

Yong Jun Yuan

Published Thu, Jul 4, 2024 · 05:00 AM
    • Sustainable Metal Cloud's immersion cooling solution allows it to achieve a power usage effectiveness of 1.1, well below IMDA’s threshold of 1.3 for what is considered a “green” data centre.
    • Sustainable Metal Cloud's immersion cooling solution allows it to achieve a power usage effectiveness of 1.1, well below IMDA’s threshold of 1.3 for what is considered a “green” data centre. PHOTO: BT FILE

    THE limited capacity in the data centre sector is likely to push the local data centre industry towards higher-value artificial intelligence (AI) use cases.

    Experts such as Bain & Company partner Kiran Karunakaran expect the nation to take the lead in the region to convert existing data centre capacity to AI-enabled data centres.

    He estimates that hyperscalers which operate large-scale cloud platforms, such as Google and Amazon, account for 70 per cent of local data centre usage. These companies will likely leverage their presence in Singapore for AI workloads, while shifting more traditional workloads to Malaysia and Indonesia.

    Data centresSingtelIMDAMinistry of Communications & InformationESG

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