Digital Realty, a prominent US-based colocation and data center giant, has unveiled plans for a sweeping investment in Singapore, committing nearly S$7 billion (US$5.48 billion) to its operations in the country. This ambitious initiative includes over S$4.3 billion (US$3.37 billion) earmarked for the development of new data centers, further solidifying Singapore’s role as a key hub in the company’s Asia Pacific strategy.
"Singapore is emerging as a critical hub for AI inference in Asia Pacific", said Serene Nah, managing director and head of Asia Pacific at Digital Realty. "As organizations deploy AI in real-world environments, they need secure, highly connected infrastructure close to where data is created and consumed. This S$7 billion investment target demonstrates our confidence in Singapore's role as the region's AI infrastructure anchor. We're not just expanding capacity - we're building the operational capabilities, innovation facilities, and local talent base needed to support customers as AI enters production at scale."
Digital Realty’s current portfolio in Singapore includes three data centers: SIN10, SIN11, and SIN12. Together, these facilities span 925,000 square feet (85,900 square meters) of colocation space and offer a power capacity of 70 megawatts. SIN12, also known as Digital Loyang II, is the newest of the three, having launched in 2021 after being first announced in 2019. SIN11, its predecessor, opened in 2016 and was redeveloped from a former paper storage facility.
The company’s expansion plans come as Singapore gradually relaxes its moratorium on new data center developments, a restriction that has been in place since 2019 to address concerns about environmental sustainability. Recent efforts by the government to manage data center growth include allocating 80 megawatts of capacity in 2023 to other major players like Equinix, GDS, Microsoft, and a consortium involving AirTrunk and ByteDance. Although Digital Realty reportedly missed out on this allocation, it remains committed to strengthening its footprint in the region.
Currently, Singapore is accepting applications for new data center projects, with plans to approve up to 200 megawatts of additional capacity. Digital Realty’s significant financial commitment underscores its confidence in Singapore’s position as a leading digital hub and its readiness to support the growing demand for AI and data-driven applications.
Digital Realty’s investment aligns with the rising prominence of artificial intelligence and its infrastructure needs. The company’s focus extends beyond merely increasing capacity - it aims to enhance operational capabilities, foster innovation, and cultivate local talent. This comprehensive approach reflects the growing importance of Singapore as a central hub for AI inference across the Asia Pacific region.
With this substantial commitment, Digital Realty is not only signaling its long-term confidence in Singapore’s data center market but also positioning itself to play a critical role in supporting the region’s digital transformation. As the demand for AI-enabled services continues to grow, the company’s efforts to establish secure and highly connected infrastructure may prove pivotal in shaping the future of technological innovation in Asia.
