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In today's rapidly developing digital and network economy, data centers have become the core infrastructure supporting global data circulation and cloud computing. As technology continues to advance and businesses' demands for data storage and processing grow, the scale and number of data centers are expanding continuously. This article will delve into the current status of data centers in Singapore and Taiwan, analyzing the similarities and differences between the two locations in terms of market size, technological applications, policy support, and future trends. By comparing the development of data centers in Singapore and Taiwan, we aim to understand how these Asian data center hubs compete and maintain their leading positions in the global market while also looking ahead to the future direction of the data center industry.

Current Status of Data Centers in Singapore
As a crucial data center hub in Asia, Singapore holds a significant position in the global data center market. By 2023, Singapore had built over 70 data centers, accounting for 60% of Southeast Asia's total data center capacity. According to a global data center survey report published by Cushman & Wakefield, Singapore ranks third among more than 60 data center cities worldwide and first in the Asia-Pacific region. This is largely due to its vast market size, advanced fiber optic networks, and efficient cloud services, underscoring its dominance in the Asian data center market.

Singapore's data centers are primarily concentrated in a few well-planned industrial areas, such as Jurong East, which is close to international network connection points; Tanjong Kling, a park designed specifically for data centers that offers optimized energy supply and cooling systems; the emerging commercial district of Paya Lebar; Changi, near Singapore Changi International Airport; and Woodlands, located in the northern part of Singapore near the Malaysian border. These areas have favorable geographical locations and comprehensive infrastructure, making them ideal choices for data center construction.

Under Singapore's advantageous infrastructure, efficient energy management systems, and attractive tax incentives, many renowned international companies, including Google, Amazon Web Services (AWS), Microsoft, Facebook, and Equinix, have been drawn to establish their data centers there. Global data center operators such as Digital Realty and ST Telemedia Global Data Centres (STT GDC) have also set up their Asian hubs in Singapore.

Current Status of Data Centers in Taiwan
With the widespread adoption of 5G technology and the increasing demand for cloud computing, Taiwan has attracted investment from numerous international and local companies. According to relevant reports, the market size of data centers in Taiwan is continuously expanding, and it is expected that more new data centers will be operational in the coming years to meet the growing needs for data storage and processing.

Since the establishment of a large data center by Google in Taiwan’s Changhua Coastal Industrial Park in 2013, other international cloud giants have also been gradually investing in the construction of data centers in Taiwan. As of 2024, Microsoft and Amazon Web Services (AWS) have announced plans to launch data centers in Taiwan. Under its "Reimagine Taiwan" initiative, Microsoft has established its first cloud data center region in Taiwan and plans to train over 200,000 individuals in digital skills. Meanwhile, AWS is expected to invest $100 million USD (approximately NT$3 billion) in the first phase of its data center project in Taiwan. In addition to large cloud service providers (CSPs), many international data center operators, such as Vantage, Actis and its subsidiary Epoch Digital, have also entered the Taiwanese market, positioning themselves to secure major corporate orders (refer to the attached table).

Data Center Operators Status in Taiwan

Table 1: Status of Other Data Center Operators in Taiwan

Data Center Operator                    | DC Specifications Status

Empyrion (Singapore)                    | Not Yet Announced
(Investment increased by NT$2.999 billion in 2021 for additional investment in Empyrion)

Actis                                               | 23 MW Capacity, luanch at 2026 Q2, Taipei

Vantage                                          | 16 MW; IT Capacity 25 MW, luanch at 2024 Q3, Taoyuan

(Source: Compiled by III, 2024)

 

Taiwan's data centers are also making continuous advancements in technology and innovation. Efficient cooling technologies are widely applied to address Taiwan's hot and humid climate, including liquid cooling systems and advanced air conditioning designs. Additionally, many data centers are exploring the use of renewable energy sources, such as solar and wind power, to reduce carbon emissions and achieve sustainable development. The introduction of energy management systems has also become a crucial means of improving operational efficiency. By monitoring and optimizing energy usage in real-time, Taiwan's data centers have made significant progress in reducing operating costs and increasing energy efficiency.

Policy Directions
The Singapore government has implemented green data center standards, offering tax incentives and funding for the application of innovative technologies. Due to the limitations of land and resources, the Singapore government imposed a temporary ban on the establishment of data centers from 2019 to 2022. After lifting the ban, the government adopted a more proactive approach and launched the "SG+" initiative in the same year, encouraging international operators to set up data centers in neighboring regions such as Malaysia, forming a regional ecosystem. As a result, data center operators began to cluster in Malaysia, which has since become a significant power source for Singapore. The Johor region, in particular, with its abundant water, electricity, and land resources, has become a crucial economic hinterland for Singapore’s development. Recently, the two sides signed a "Johor-Singapore Special Economic Zone" memorandum, and many new data centers are planned to be built in Johor, especially in the town of Johor Bahru, which is seeing a continuous influx of foreign investments.

On May 30th of this year, the Singapore government further announced the "Green Data Centre Roadmap." This policy aims to increase Singapore's total data center capacity by 35% from the current 1.4 GW, including at least 300 MW of IT capacity and over 200 MW of green energy generation. The overall planning of data center facilities is also aligned with the tropical data center standards announced by IMDA, gradually increasing the maximum server tolerance from 35°C to 40°C, moving towards raising overall room temperatures to reduce energy consumption.

Conclusion
After President Lai Ching-te took office, he proposed the "Asia-Pacific Operations Center" plan, which aims for balanced development across Taiwan's north and south and the enhancement of infrastructure to position Taiwan as an operational base for multinational corporations' data centers or regional headquarters. To achieve this goal, it is crucial to improve Taiwan's infrastructure, strengthen energy management systems, and promote the use of renewable energy. As global warming accelerates in recent years, the energy efficiency management of data centers has become increasingly important. Drawing on Singapore's successful experience, Taiwan, where most data centers are still in the construction phase, should develop relevant standards and policies to reduce energy consumption, improve operational efficiency, and further consolidate its competitiveness in the global data center market. This will not only promote Taiwan's economic development but also help achieve sustainable development goals.

 

Cover Image Source: Canva Pro Library

References:

1. 美通社 Blog

2. Economic News Taiwan

3. Empyrion Digital Website

4. Environmental Information Center, Taiwan

5. Reccessary - Singapore Aims to Expand Data Center Capacity with Green Strategies

6. Taiwan Ministry of Economic Affairs

7. Taiwan News

8. National Taiwan University Risk Society and Policy Research Center