Digital Realty announced it is targeting nearly S$7 billion (US$5.48 billion) of total investment in Singapore, with more than S$4.3 billion planned for new data center developments. The company positions Singapore as "a critical hub for AI inference in Asia Pacific" requiring secure, highly connected infrastructure close to where data is created and consumed. Digital Realty expects to launch a Digital Realty Innovation Lab at its Loyang facility in the second half of 2026, providing customers with environments to develop, test, and validate AI and hybrid cloud solutions prior to wider deployment.

The announcement comes as Singapore launched its second Data Centre Call for Application, opening at least 200 MW of new capacity with stringent green energy requirements. Singapore lifted its data center moratorium with strict sustainability mandates, though most import capacity from cross-border renewable projects will only arrive in the early 2030s. Industry executives say infrastructure is emerging as a key constraint as demand for AI computing drives rapid expansion in data center capacity across Singapore and neighboring markets.

Unlike AI training workloads which can be geographically dispersed, inference demands proximity to users, networks and data, making Singapore's connectivity and governance approach increasingly strategic for latency-sensitive AI applications. Digital Realty has nearly doubled its Singapore workforce to over 300 employees and expects to grow to 400 by 2030, with nearly 90% being Singapore nationals. The investment reflects broader trends as robust demand for both colocation and hyperscale data centers drives strong investor interest in 2026, with Singapore's new capacity tranches ensuring it remains a premium hub for specialized AI workloads.

Major global hyperscalers and domestic enterprises made significant investments and operational expansions in India in 2025, a trend set to continue this year with Hyderabad as a focal point. For companies planning 2026 digital strategies, the emerging APAC market is no longer a secondary option but a primary deployment destination, with the question being how quickly capacity can be secured before fast-growing markets tighten.

India Positioned for Hyperscaler Expansion as Regional Alternative

Singapore's DC-CFA2 requires facilities to be "best-in-class" in energy and IT efficiency with at least 50% green energy from sources including biomethane, low-carbon ammonia, hydrogen, or on-site solar. The planned Jurong Island data center park with capacity of up to 700MW is expected to be key for new capacity, as Singapore builds hydrogen-ready power plants to address supply and demand challenges for renewable energy. Sovereign-compute rules and fintech regulations are pushing banks to keep data within Singapore, supporting 2.45% CAGR for BFSI demand, while the Green Data Centre Roadmap requires sub-1.3 PUE designs.

Singapore Emerges as AI Inference Hub Despite Power Constraints

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US data center giant commits S$4.3 billion for new facilities as AI drives APAC infrastructure demand.

Forecasts for aggregate hyperscaler capital expenditure in 2026 are north of USD 400 billion globally, with Asia Pacific expected to be a key recipient of this investment as companies scale up AI infrastructure. Southeast Asia is poised for further expansion in 2026, with Malaysia gaining traction and major global hyperscalers and domestic enterprises making significant investments in India, particularly in Hyderabad.

Companies are shifting focus from model development to how AI can be deployed at scale, as constraints around compute resources, energy consumption and hardware availability increasingly shape how AI systems are commercialized. The APAC data center narrative is transitioning from capacity to capability, with the region expected to move from follower to leader in defining next-generation data center architecture by 2026.

Regional operators pivot from training to production-scale AI deployment infrastructure.

AI Inference Drives APAC Data Center Investment Surge

Digital Realty Pledges S$7 Billion AI Hub Investment in Singapore

Digital Realty, the world's largest cloud-neutral data center platform, announced targeting nearly S$7 billion of total investment in Singapore, with more than S$4.3 billion planned for new data center developments building on existing investments. Serene Nah, Managing Director and Head of Asia Pacific at Digital Realty, explained that Singapore is emerging as a critical hub for AI inference, where organizations need secure, highly connected infrastructure close to where data is created and consumed. The company has nearly doubled its Singapore workforce to over 300 employees over three years and expects to grow to 400 by 2030, with nearly 90% being Singapore nationals.

In the second half of 2026, Digital Realty plans to launch a Digital Realty Innovation Lab at its Loyang facility, providing customers with a fully supported environment to develop, test, and validate AI and hybrid cloud solutions before wider deployment. The company already operates its Global Command Center in Singapore, a 24/7 monitoring hub that reinforces the country's role as a trusted base for critical digital infrastructure operations. Singapore has had a data center moratorium since 2019 but is relaxing restrictions, with Equinix, GDS, Microsoft, and others receiving 80MW of capacity allocation in 2023, though Digital reportedly missed out on that round.

Unlike AI training workloads that can be geographically dispersed, inference demands proximity to users, networks and data, making Singapore's strong connectivity and trusted operating environment increasingly strategic for high-value, latency-sensitive AI applications. Deloitte estimates Southeast Asia's AI market could reach approximately US$65 billion by 2035. With its nearly S$7 billion investment target, expanded workforce, and growing innovation capabilities, Digital Realty is positioned to support Singapore's evolution as a leading AI infrastructure hub for Asia Pacific.

Digital Realty relocated and expanded its Asia Pacific regional office to IOI Central Boulevard in July 2025, with further expansion anticipated in 2026, while strengthening Singapore's ecosystem through operational and innovation capabilities including its Global Command Center. The planned Digital Realty Innovation Lab at the Loyang facility will provide customers with a fully supported environment to develop, test, and validate AI and hybrid cloud solutions prior to wider deployment.

Singapore's relaxation of its data center moratorium, which has been in place since 2019, signals government confidence in managing the balance between digital infrastructure growth and sustainability concerns. Digital Realty's engagement with local institutions, including hosting AI Open Houses for National University of Singapore students, demonstrates commitment to developing Singapore's next generation of digital infrastructure talent.

Digital Realty's S$7B Bet Validates Singapore AI Strategy

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US data center giant commits record sum to cement Singapore's role as regional AI infrastructure anchor.

Digital Realty's S$7 billion investment target demonstrates confidence in Singapore's role as the region's AI infrastructure anchor, reflecting the city-state's emergence as the preferred location for AI inference workloads across Asia Pacific. Singapore's strong connectivity, trusted operating environment, and established data governance approach make it increasingly strategic for high-value, latency-sensitive AI applications that require proximity to users and data.

Private equity investment has shifted towards digital infrastructure required to support AI-enabled workloads, including data centers and fiber platforms, with Singapore remaining the clear center of private equity activity in Southeast Asia. Digital Realty is also investing in Singapore's broader digital infrastructure ecosystem, collaborating with partners on early-stage quantum data center initiatives to prepare for the next frontier of compute.

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Digital Realty Pledges S$7 Billion AI Hub Investment in Singapore

Digital Realty Targets S$7B Singapore Investment for AI Hub