Singapore Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)

Singapore Data Center Construction Market Analysis

The Singapore data center market is projected to register a CAGR of 3.04% during the forecast period. One of the critical sources of growth in the region is its increasing internet economy. The rapid adoption of cloud-based business operations has encouraged businesses to acquire data management capacities to handle vast volumes of data that are being generated. Increased proliferation of online shopping due to the availability of user-friendly interfaces, high-speed internet, and smart devices such as smartphones, tablets, laptops, etc., is expected to drive the market in the future.

• Singapore holds a significant share of the Asia-Pacific data center market owing to its strong network infrastructure, pro-business environment, economic and political stability, low corporate tax rate, and low risk of natural disasters relative to other countries. Many data center operators, such as SpaceDC, have been building green data centers to support sustainability requirements. Space DC is based in Jakarta over a 1.8-hectare campus to house two data centers. In order to power the facility, the company uses natural gas to produce electricity and is focused on local natural resources in order to create green energy and reduce its carbon footprint.
• Moreover, the government of Singapore offers free Trade Zones or economic areas that provide firms with beneficial customs and tax incentives. Some of the Free Trade Zones present in Singapore include Tanjong Pagar Terminal and Keppel Terminal, Sembawang Wharves, and more. Such initiatives are driving opportunities for more construction in the country.
• Further, many of the larger deals have also brought more multi-story construction, particularly in property-constrained markets. Building vertically allows developers to maximize the square footage on each acre of property. The most prominent example is Facebook's 1.8 million SF project in Singapore, which features an 11-story purpose-built data center structure. Such investment activities and the growth trends of the real estate and construction sector across the country are expected to stimulate the growth of data center construction over the forecast period.
• Environmental, cost and workforce-related challenges could restrain the Singapore data center construction market. The environmental impacts are wide-reaching, impacting climate change, pollution, biodiversity, and natural resources. Though the challenges are broad, they present many opportunities for improvement and long-lasting positive impact. The cost of constructing the data center is also high, which could restrain small and medium enterprises from setting up a new center. The vendor's focus is on the regions that have lower costs for construction.
• Furthermore, the COVID-19 pandemic struck when demand for data center capacity was expanding rapidly, and it applied restrictions to constructing new facilities. There was a specific impact on the market, such as data network traffic increased the traffic by increasing usage of applications such as Zoom and Microsoft Office, among others. Moreover, the pandemic caused challenges in constructing a data center due to disruption in the supply chain, which slowed down the market's growth. However, post-pandemic, the demand for data capacity has more than tripled, and companies are shifting toward a hybrid cloud environment. Hence, the market has seen a resurgence in data center construction.

Singapore Data Center Construction Market Trends

Tier 3 is the Largest Tier Type

Singapore Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The Singapore Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.