Singtel to set up $400m data centre

Mr Bill Chang says the centre will position Singapore as a global cloud services hub.
Mr Bill Chang says the centre will position Singapore as a global cloud services hub. ZAOBAO PHOTO

Rising demand for cloud services has prompted Singtel to invest in a $400 million data centre in Jurong.

The new seven-storey facility will serve the financial services industry, government agencies and cloud and Internet service providers like WhatsApp and Instagram.

Singtel said in a statement yesterday that the 570,000 sq ft centre will be completed by September next year.

The data centre will be the telco's 13th in the region. Singtel has eight others here, and two each in Hong Kong and Australia.

Chief executive for group enterprise Bill Chang said the facility "enables Singtel to attract and host world-class cloud players in Singapore, and position the country as a global hub for cloud computing and innovation".

Businesses will be able to use Singtel's regional hosting capabilities to grow and connect their operations across the region, he added in the statement.

Revenue from the data centre market here is set to hit US$1.2 billion (S$1.7 billion) next year, according to a report by Structured Research.

There are about 50 such centres in Singapore, including ones run by Google, Japanese telco NTT and Microsoft.

Data centre growth has been boosted partly by explosive Internet usage in China, which has in turn increased data traffic coming in and out of Singapore.

Companies from elsewhere are also looking to expand to Asian markets, while Asian companies want to expand globally.

Singapore's strategic location makes it a good gateway for both. The Republic also has good power infrastructure, and many key submarine cable systems land here, connecting it to Hong Kong, Australia, Japan, the Middle East and the United States.

The new facility will have a power capacity of up to 36MW - one of the highest power densities in the region. Large amounts of power are needed by always-on computers to serve the exploding number of people who are spending more time online.

Such usage generates more heat, but Singtel is installing a cooling system using recycled Newater that also runs on energy-efficient equipment. An integrated climate control system will help to regulate temperatures as well.

Singtel's efforts in these areas will earn it the Building and Construction Authority Green Mark Platinum standard for green efficiency and environmental impact.

Grace Chng

A version of this article appeared in the print edition of The Straits Times on October 09, 2015, with the headline 'Singtel to set up $400m data centre'. Print Edition | Subscribe