APPD Market Report Article

Singapore

September 21, 2022

Christopher Street, Head of Data Centres, Asia Pacific

N/A

USD 650

MRC
Rising

Strong demand across segments continues

  • The demand for retail colocation, hyperscale applications and cloud services continues unabated.
  • There is not only strong cross-industry demand, with banks in particular driving up demand, but also cross-regional demand, especially from Hong Kong.

Supply is constrained despite ending of moratorium

  • No new supply for retail colocation has come online since hyperscale-focused Airtrunk SGP1 in 2020, and Digital Loyang II, STT Loyang and Equinix SG5 in 2021.
  • The only new supply on the horizon consists of hyperscalers (e.g. Facebook) and cloud service providers (e.g. AWS). In the medium term, supply will likely be severely limited.

Partial lifting of moratorium to impact new investments

  • The moratorium on building new data centres, which was in force since 2019, has been partially lifted in 2Q22. Approximately 60MW is now available yearly to operators through competitive tenders.
  • Equinix will be investing USD 86 million to expand its SG5 International Business Exchange data centre.

Outlook: Market likely to remain constrained in the medium term

  • Retail colocation spaces are anticipated to fetch premium rents.
  • Operators will likely be required to demonstrate innovation in the areas of energy efficiency and sustainability.

Note: Singapore Data Centres refers to Singapore's overall data centre market.

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