The Arcadis Data Centre Location Index 2021 ranked Singapore the second most attractive city to build data centres, out of a total of 50 cities. In first place is the US.
Demand for data infrastructure was already sky-high before 2020. The COVID-19 pandemic has led to a massive surge in internet traffic. This is largely driven by the various lockdowns that governments put in place to drive down infection rates. The lockdowns led to millions of people working from home and using digital means to purchase goods and services. COVID-19 has accelerated the advent of a digital economy.
Finding the best location for a new data centre is a critical part of how companies can maximise the performance of their investment in a new facility. Companies would look at 2 significant variables according to the report by Arcadis. These are the existing infrastructure and regulatory regime, as well as current and future demand for data.
Singapore continues to attract major investments from the technology industry, making it a natural co-location hub for serving markets across Southeast Asia and the wider Asia-Pacific region, the report says. This is due to its well-educated workforce, stable government, solid infrastructure and low-risk environment.
A premier data centre location according to Arcadis
Singapore is ranked 2nd in the Arcadis Data Centre Location Index 2021, making it a premier data centre location. This is due to Singapore’s leading position in internet connectivity and low energy prices according to Arcadis. Singapore is currently well-positioned to be a regional Data Centre hub. Its position is underpinned by robust local infrastructure and a conducive business environment, including high data protection standards.
The challenges that Singapore faces include the availability of renewable energy sources and land scarcity due to its small size.
The Arcadis report noted that the Singapore government mapped out space beneath the city as it wants to move urban infrastructure like data centres, bus depots and sewage systems underground.
At the Singapore Perspective 2020 Forum, Trade and Industry Minister Chan Chun Sing talked about energy being the challenge of the next 50 years, just like how water was the challenge of the last 50 years.