Why is Singapore a hub for data centers in the Asia-Pacific region?

On August 23, 2022, Google officially opened its third data center in Singapore after 15 years of establishment. At present, Google has spent about 1.10 billion 88 million Singapore dollars and plans to invest in the data center in Singapore for a long time. The new data center is located near the two existing data centers in Jurong West (picture from the Internet) At the same time, the Singapore Smart Nation and Digital Government Group (SNDGG) and Google Cloud signed a memorandum to jointly strengthen cooperation in artificial intelligence. Google has created many job opportunities in Singapore, and Google has repeatedly topped the list of best employers in Singapore. For example, during the epidemic, Google Singapore, the employer of the year, offered employees many opportunities for virtual learning and development programs, such as manager and leadership training. After being able to return to the office, Google also promoted a hybrid work model, where employees can work from home two days a week and come to the office three days a week. The international status of Singapore data centers Singapore is the third largest international financial center after New York and London, and it is also one of the important service and shipping centers in Asia. Not only that, Singapore is also a leader in global data centers. According to the “Arcadis Data Centre Location Index 2021” (Arcadis Data Centre Location Index 2021), Singapore is second only to the United States. It is the most competitive country in the world with many data centers, and it is also the largest data center location country in the Asia-Pacific region. Major Internet Tech Giants have established their own data centers in Singapore. According to the statistics of research companies, there are about 60 data centers in Singapore, and many centers are still under construction. Why choose Singapore? First, Singapore is politically stable and has no major natural disasters. Singapore’s political and national operation stability ranks first in the world. It is located in the equatorial windless zone, without typhoons and tornadoes. It is not at the junction of the earth’s plates, and there are no earthquakes and tsunamis. Second, Singapore’s well-developed digital infrastructure, with the most stable power supply in the world. Singapore has the largest digital infrastructure in Asia, a top-notch submarine cable hub, and the fastest broadband speed in the world, with a latency of only 30.7 milliseconds in the world. In an analysis by Arcadis, Singapore’s electricity consumption scored 76.86 points (up to 100 points) – just behind the United States (77.86 points), allowing data centers with large power users to have a continuous and stable power supply. Third, multinational companies gather together, and Singapore has an absolute advantage in talent. At present, there are about 26,000 international companies in Singapore, and one-third of the “Global 500” companies choose to set up their Asian headquarters in Singapore, including Apple, Microsoft, Google, Facebook, Amazon, BMW, Procter & Gamble, Unilever, etc. Enterprises can quickly mobilize resources throughout the Asia-Pacific region, which greatly reduces the time and capital cost of business decisions. Singapore has the resource advantage of a large number of regional headquarters, as well as top talents in global professional fields. Fourth, the policy and business environment are friendly. The Singapore government’s supervision of data is relatively fair and open. Some South East Asia countries (such as Malaysia and Indonesia) may require that certain data cannot be exported abroad. In addition, the construction cycle of data centers is very tight. Generally speaking, it takes no more than 2 years from commercial demand to server launch, and it must be completed in 12 to 18 months from the site selection. Previously, the Singapore government has given a special green light for data center projects, and generally approval does not take more than one month. For many companies, Singapore’s strong submarine cable network and low risk of natural disasters make it the most attractive data center hub in the Asia-Pacific region. Industry giant Equinix will open its fifth data center in Singapore. Digital Realty has launched its third and largest data center in Singapore, which is currently one of the greenest data centers in Singapore. Tencent Cloud hopes to add at least one more data center to the current two. Companies such as Facebook and Amazon have also announced that they will use renewable energy to power their data centers in Singapore. In recent years, not only world-renowned companies have settled in Singapore, but also high net worth individuals from different fields have come to live and live in Singapore. I believe that Singapore’s future will be better.