Singapore's second Data Centre Call for Application (DC-CFA2) closes on March 31, 2026, with at least 200MW of data centre capacity available, potentially more through adoption of innovative green energy pathways. Facilities must meet "best in class" efficiency standards, including a power usage effectiveness of at most 1.25 at full load, with at least 50% powered by green energy sources including biomethane, low-carbon ammonia, hydrogen, novel fuel cells or on-site solar. This represents more than double the 80MW capacity awarded in the 2022 pilot to Equinix, Microsoft, GDS Holdings and a joint venture between AirTrunk and ByteDance.

Singapore maintained a de facto moratorium on new large-scale data centre approvals from 2019 to 2022, lifted when the original DC-CFA pilot was launched targeting roughly 60MW of capacity. The government announced a 700MW data centre park at Jurong Island in November, as part of the 2024 Green Data Centre Roadmap targeting at least 300MW of additional capacity. The 50% low-carbon fuel requirement represents "an incredibly high standard with no precedent as national policy anywhere else without an abundance of renewables".

Singapore's sustainability requirements are influencing regional policy development, with operators investing in Singapore-compliant infrastructure finding those investments applicable across the region as other markets adopt similar standards. The city-state is building green energy infrastructure first, then unlocking sustainable data centre growth, positioning itself to own the ecosystem of green energy supply, efficiency standards and operational expertise in a power-constrained world. Singapore is demonstrating that sustainability requirements and AI infrastructure growth can coexist, creating a model that land-constrained markets worldwide will need to consider.

Australia's data centre market is well positioned to build on a strong 2025, with extremely aggressive infrastructure buildout by hyperscalers and OpenAI's recent announcement of a partnership with NEXTDC to build a AUD 7 billion hyperscale AI campus in western Sydney. Singapore's sustainability mandates offer a potential regulatory template as Australia grapples with similar power constraints and climate commitments in its own booming data center sector.

Australia Watches Singapore's Green Data Center Experiment

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 a focal point. Singapore's pioneering 50% green energy requirement for data centers provides a potential framework for India's own sustainability mandates as the country scales its digital infrastructure while meeting climate commitments.

India Monitors Singapore Model for Data Center Sustainability

Singapore announced a 700MW data centre park at Jurong Island in November, explicitly positioned to leverage shared infrastructure and access to emerging low-carbon energy sources. JTC and the National University of Singapore are scheduled to launch Phase 2 of the Sustainable Tropical Data Centre Testbed in 2026, testing seawater-based cooling technologies, biofuel integration, and advanced microgrid systems before mass adoption. Amazon Web Services pledged SGD 12 billion while Google committed $5 billion to the market transformation.

Singapore's 700MW Jurong Island Park Transforms Data Center Landscape

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City-state's DC-CFA2 program requires 50% renewable energy as applications close March 31, 2026.

Singapore's 1.25 PUE and 50% green energy requirements may propagate to other markets, with operators investing in Singapore-compliant infrastructure finding those investments applicable across the region as other markets adopt similar standards. Major operators are adopting Singapore standards proactively, viewing them as future baselines rather than current exceptions, building to Singapore standards today to avoid retrofit costs as requirements spread.

Southeast Asia is poised for expansion in 2026, with Malaysia gaining traction beyond Singapore spillover, Thailand improving power and land access, and Singapore's 1.2 GW of new capacity ensuring it remains a premium hub for AI workloads while pushing larger requirements to neighboring Southeast Asia. Land scarcity and high industrial tariffs continue driving up total cost of ownership, prompting operators to pursue cross-border campuses or floating data center models, though Singapore's policy stability provides strong investor assurances.

Stringent sustainability requirements signal regional policy shift as operators prepare for cross-border compliance.

APAC Markets Eye Singapore's Green Data Center Blueprint

Singapore Unlocks 200MW Data Center Capacity Amid Green Power Push

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.

Digital Realty's record investment signals broader trend of enterprise AI infrastructure consolidation in the region.

Singapore Cements Position as APAC AI Infrastructure Leader

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

Singapore has opened its second data center call for applications (DC-CFA2) requiring operators to source at least 50 percent power from green energy sources and achieve a maximum 1.25 power usage effectiveness at full load. The DC-CFA2 application window closes on March 31, 2026. The city-state maintained a moratorium on new data center developments from 2019 until July 2022, when it launched a pilot scheme that allocated 80MW of capacity to Equinix, GDS, Microsoft, and a consortium of AirTrunk and ByteDance in 2023. The new program launched December 1, 2025, alongside plans for a 700MW low-carbon data center park at Jurong Island that could increase Singapore's total capacity by 50%.

Singapore currently has the lowest colocation vacancy rate in APAC at approximately 1.4%, reflecting supply constraints rather than demand weakness. The market reached $3.13 billion in 2024 and is projected to grow to $5.59 billion by 2030. The country's 230kV transmission network cannot handle 400kV connections required by 100MW+ data centers, necessitating $2 billion investment and 5-year construction timelines for just 50km of high-voltage lines. Singapore's electricity generation remains 94% dependent on natural gas, creating challenges for truly green data centers despite sustainability mandates.

The government's renewable energy import tender aims to secure up to 4GW of renewable energy by 2035, representing around 30% of Singapore's electricity supply, with bulk imports expected from neighboring Indonesia and Malaysia. Singapore's model demonstrates that sustainability requirements and AI infrastructure growth can coexist, creating a template for land-constrained markets worldwide facing data center demand pressure. The March 31, 2026 deadline will reveal which operators believe in Singapore's strategic scarcity model.

Singapore's DC-CFA2 program requires operators to source at least 50% power from approved green energy pathways, achieve 1.25 PUE at full load, with applications closing March 31, 2026. The program coincides with plans for a 700MW low-carbon data center park at Jurong Island, with approximately 20 hectares set aside and 300 hectares reserved for new-energy projects including hydrogen, ammonia, and battery storage.

Singapore Opens 200MW Green Data Center Applications

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DC-CFA2 requires 50% green power, 1.25 PUE, with applications closing March 31.

Singapore lifted its data center moratorium with strict sustainability mandates, while Malaysia emerged as the world's hottest data center destination despite power infrastructure concerns. Traditional powerhouses Singapore and Hong Kong experienced subdued growth as land and power constraints reached practical limits, while Bangkok, Jakarta, and Kuala Lumpur gained appeal.

Asia Pacific added nearly 2,300MW to its development pipeline in H1 2025, with operational capacity now at approximately 12.7GW. Bank of America predicts APAC data center capacity will double within five years, adding 2GW annually, though power availability remains the main obstacle to project completion for nearly half of survey respondents.

Singapore's selective approval model influences regional approaches to sustainable growth.

APAC Data Center Capacity Constraints Drive Policy Innovation

Singapore Launches Second Green Data Center Call for 200MW

Equinix operates interconnection-focused data centers across major APAC markets including Singapore, Tokyo, Sydney, and Hong Kong. Arc Brief tracks Equinix's role in the APAC digital infrastructure landscape, its interconnection network, and how its facilities shape cloud access and latency for businesses across the region.

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News Coverage

Singapore Unlocks 200MW Data Center Capacity Amid Green Power Push

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

Singapore Launches Second Green Data Center Call for 200MW