Every time you stream a show, pay with PayNow or save a photo to the cloud, the data is stored and processed somewhere in a data centre. Singapore is one of the busiest places in the region for these buildings. Here is what they do, and what is being done to make them greener.

What is a data centre?

Think of it as a very secure, very cool warehouse for computers. Inside are racks of servers that store information and run online services, with backup power, strong connectivity and cooling systems to keep everything running around the clock.

How big is the sector here?

According to the Infocomm Media Development Authority (IMDA), Singapore has more than 1.4 gigawatts of data centre capacity and over 70 cloud, enterprise and co-location data centres. They host cloud platforms and digital services used by businesses in Singapore and across the region.

Why Singapore?

IMDA says data centres here benefit from Singapore's position as a business and digital hub. Strong connectivity and a stable business environment are the usual reasons companies give.

The challenge: power and space

Data centres use a lot of electricity, and Singapore is small. Independent market reports say the same pressure is felt across Asia Pacific. Cushman & Wakefield's H1 2026 update says electricity availability has become the main bottleneck for the industry, and CBRE notes that power is a major challenge for operators.

The green push

IMDA's Green Data Centre Roadmap, launched in 2024, aims to provide at least 300 megawatts of additional capacity in the near term, with more through green energy deployments. Other measures include:

  • A call for applications for at least 200MW of further capacity, with proposals assessed on factors such as sustainability
  • A Tropical Data Centre standard and a liquid cooling standard, designed for warm climates like ours
  • Funding to encourage more energy-efficient software and computing

What it means for you

Most of us never see a data centre, but fast apps, online banking and cloud services depend on them. The aim of the green push is to keep that digital infrastructure growing without wasting energy.

Interested in working in the sector?

See our separate guide on cloud and AI careers and the training support available.