(MENAFN- GlobeNewsWire - Nasdaq) Singapore's data center expansion is driven by cloud, AI and wholesale colocation demand, creating opportunities in sustainable facilities, modular builds, cooling and power systems.Dublin, Sept. 14, 2026 (GLOBE NEWSWIRE) -- "Singapore Data Center Market - Investment Analysis & Growth Opportunities 2026-2031" has been added to ResearchAndMarkets.com's offering.
Singapore Data Center Market to Reach USD 5.11 Billion by 2031, Driven by Cloud, AI and Sustainable Infrastructure Investment
The Singapore data center market was valued at USD 3.25 billion in 2025 and is projected to reach USD 5.11 billion by 2031, expanding at a compound annual growth rate of 7.83%. Growth is being supported by enterprise cloud adoption, artificial intelligence workloads, digital transformation initiatives and continued demand for high-quality colocation capacity.
Singapore remains one of Southeast Asia's most strategically important data center hubs. Following the lifting of the data center construction moratorium in 2022, the market entered a new expansion phase focused on highly efficient and sustainable facilities. Future development will be shaped by limited land availability, power constraints, higher industrial electricity costs and increasing rack densities associated with AI infrastructure.
The country has approximately 44 operational colocation data centers, with most facilities developed to Tier III standards. Wholesale colocation accounted for an estimated 58.3% of total Singapore colocation revenue in 2025 and is forecast to exceed 67.2% by 2030 as hyperscale cloud platforms and large enterprises secure additional capacity.
Singapore Data Center Market Highlights
Singapore's data center market is forecast to grow from USD 3.25 billion in 2025 to USD 5.11 billion by 2031. The development pipeline includes six identified upcoming facilities alongside 44 existing colocation data centers. Average industrial electricity prices ranged from approximately USD 0.21 to USD 0.24 per kWh in the first quarter of 2025, influencing operating costs and facility design strategies. In October 2025, Singapore announced plans for a 700 MW low-carbon data center park on Jurong Island. The project is expected to incorporate hydrogen-ready power plants, battery storage, ammonia-based power and solar energy. In November 2025, KKR and Singtel were reportedly in advanced discussions to acquire a controlling interest of more than 80% in ST Telemedia Global Data Centres from ST Telemedia. The potential transaction was valued at more than USD 5 billion. New operators and expanding regional platforms are expected to increase competition for suitable sites, power allocations, customers and technical talent.
Sustainability and Energy Efficiency Shape Market Development
Singapore's data center growth strategy is closely aligned with the Singapore Green Plan 2030 and the country's long-term decarbonization objectives. Singapore aims to reduce greenhouse gas emissions to approximately 60 million tons of carbon dioxide equivalent by 2030 and achieve net-zero emissions by 2050.
National sustainability targets include deploying at least 2 gigawatt-peak of solar energy and transforming 80% of buildings into green buildings by 2030. These priorities are accelerating demand for energy-efficient cooling, advanced power management, renewable energy procurement, prefabricated construction and data center infrastructure management platforms.
Market Segmentation and Research Coverage
The Singapore data center market research evaluates existing and upcoming facilities by floor area and power capacity. It provides market sizing and forecasts for investment, colocation revenue, IT load capacity and infrastructure deployment across the country.
Infrastructure analysis covers servers, storage systems and network equipment, along with UPS systems, generators, transfer switches, switchgear and power distribution units. Mechanical infrastructure coverage includes rack cabinets, chiller units, cooling towers, condensers, dry coolers, CRAC and CRAH units, and other high-density cooling technologies.
The report also examines core and shell construction, installation and commissioning, engineering and building design, fire detection and suppression, physical security and data center infrastructure management. Facilities are assessed across Tier I and Tier II, Tier III and Tier IV standards.
Colocation market analysis includes revenue forecasts from 2022 through 2031, retail and wholesale colocation pricing, and the changing revenue contribution of each service category. The research further evaluates investments by colocation, hyperscale and enterprise operators while examining market trends, opportunities, constraints, supply conditions and demand fundamentals.
Competitive Landscape
Singapore's data center operator landscape includes AirTrunk, BDx Data Centers, China Mobile, Digital Realty, Empyrion Digital, Equinix, Global Switch, Goodman, Iron Mountain, Keppel Data Centres, Mapletree, NTT DATA, Princeton Digital Group, Singtel, ST Telemedia Global Data Centres, ST Engineering, Telin Singapore and Telehouse. DayOne is among the newer entrants increasing its presence in the market.
Leading IT infrastructure providers include Arista Networks, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo, NetApp, NVIDIA, Quanta Cloud Technology and Wiwynn. Demand for AI-optimized servers, high-performance networking and rack-scale systems is expected to strengthen as operators prepare facilities for compute-intensive workloads.
Prominent support infrastructure suppliers include ABB, Caterpillar, Cummins, Eaton, Legrand, Mitsubishi Electric, Rolls-Royce, Schneider Electric, STULZ and Vertiv. These companies support the market through power, cooling, backup generation, electrical distribution and long-term maintenance capabilities.
Construction contractors and engineering consultants operating in the sector include AECOM, Arup, AtkinsRealis, Aurecon, Cundall, DSCO Group, Fortis Construction, Gammon Construction, NTT Facilities and PM Group. Market participants are increasingly adopting modular construction and prefabrication to shorten development schedules while maintaining compliance with environmental, planning and power-allocation requirements.
Strategic Value of the Research
The report provides an in-depth assessment of the Singapore data center market size, investment outlook, facility pipeline, power capacity additions and colocation revenue through 2031. It also identifies the primary factors driving market growth and evaluates how much additional power capacity is expected to be added from 2026 to 2031.
With Singapore balancing digital infrastructure demand against land, energy and sustainability constraints, the market is expected to prioritize efficient capacity expansion, advanced cooling, resilient power systems and lower-carbon development. These trends will create opportunities for data center investors, cloud providers, construction companies and infrastructure technology vendors throughout the forecast period.
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