Singapore Data Center Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2030) | 3.04 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Singapore Data Center Construction Market Analysis
The Singapore Data Center Construction Market is expected 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.
Singapore Data Center Construction Market Trends
Tier 3 is the Largest Tier Type
- The tier 3 and 4 segments are expected to hold the highest market share during the forecast period. The tier 3 segment is expected to hold the highest market share of 71.5% in 2023. However, its share may decrease marginally to 61.4% in 2029 due to the upcoming tier 4 data centers.
- The tier 3 segment is expected to record a CAGR of 0.43% during the forecast period, majorly due to the upcoming data centers from Keppel Data Center and STT GDC Pte Ltd, which plan to launch three facilities with a cumulative IT load capacity of 90 MW.
- The tier 1 & 2 segment is expected to record a CAGR of 1.88% during the forecast period, with a market share of 12.1% by 2029. The growth trend is majorly due to the upcoming data centers from NTT Ltd, which plans to launch one facility with an IT load capacity of 5 MW.
- Both the tier 1 & 2 and tier 3 segments may witness a dip in their market share due to the growth of the tier 4 segment, with a CAGR of 12.69% and an IT load capacity of 269.65 MW during the forecast period.
- In Singapore, 7% of total electricity consumption goes to data centers, which may grow to more than 12% by 2030. As a result, the country aims to efficiently use data centers by equipping them with modern infrastructure and cooling techniques. Operators are considering investing in more efficient cooling solutions, such as district cooling, and greener options for powering data centers, such as engaging in Power Purchase Agreements (PPAs). Tier 4-certified facilities may help operators achieve these standards, thus boosting the segment's growth.
Increased Migration to Cloud-based Business Operations
- The data center industry has begun to gain momentum with attractive investments from hyperscale cloud providers such as Google, Alibaba, and Amazon. Due to the pandemic, Google announced its third data center in the country, representing a long-term investment of about USD 850 million.
- Furthermore, Chinese cloud service provider Alibaba Cloud has launched its cloud computer in Singapore, eliminating the need for powerful desktop hardware to perform compute-intensive tasks.
- All connectivity and storage will be managed by Alibaba Cloud, which targets organizations involved in medical research, financial modeling, and oil and gas simulations, among other use cases. Such instances are expected to increase the demand for the cloud industry in the market and drive opportunities for the vendors studied in the market.
- Moreover, many businesses are opting for cloud computing services in Singapore as it provides access to multiple devices and locations via the Internet, resulting in efficient business.
Singapore Data Center Construction Industry Overview
The Singapore data center market is moderately consolidated, with the top five companies occupying the majority share. Fortis Construction, ABB Ltd, Precomp Singapore, AECOM, and TNS Asia Pacific PTE Ltd are the top five players.
In July 2023, Singapore Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA) announced the development of 80 MW capacity data centers with four operators named Equinix, GDS, Microsoft, and a consortium of AirTrunk, and ByteDance to expand international connectivity. Such investments are driving opportunities for the vendors in the market.
In March 2023, Megawide Construction Corporation signed an agreement with a Singapore-based group to build a data center worth USD 300 million to support the pivoting digital infrastructure in the country. The project involves the long-term development of a 69 MW colocation data center, resulting in opportunities for the vendors studied in the market.
Singapore Data Center Construction Market Leaders
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Fortis Construction
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ABB Ltd
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Precomp Singapore
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AECOM
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TNS Asia Pacific PTE Ltd
*Disclaimer: Major Players sorted in no particular order
Singapore Data Center Construction Market News
- November 2022: AirTrunk completed the final phase of SGP1 data center expanding the total capacity of the data center to more than 78 MW.
- September 2022: Equinix, Inc. announced a partnership with the Centre for Energy Research & Technology (CERT) under the National University of Singapore's (NUS) College of Design and Engineering to explore technologies that enable the use of hydrogen as a green fuel source for mission-critical data center infrastructure.
Singapore Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumption & Market Definition
- 1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
- 4.1 Market Overview
-
4.2 Market Drivers
- 4.2.1 Increased Migration to Cloud-based Business Operations
- 4.2.2 Rise of Green Data Centers
- 4.2.3 Government Support in the Form of Tax Incentives for Development of Data Centers
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4.3 Market Restraints
- 4.3.1 Higher Initial Investments and Low Availability of Resources
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assessment of COVID-19 Impact
5. Key Industry Statistics
- 5.1 Planned/Under Construction IT Load Capacity
- 5.2 Planned/Under Construction Raised Floor Space
- 5.3 Planned/Under Construction Submarine Cable
6. MARKET SEGMENTATION
-
6.1 Tier Type
- 6.1.1 Tier 1 and 2
- 6.1.2 Tier 3
- 6.1.3 Tier 4
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6.2 Data Center Size
- 6.2.1 Small
- 6.2.2 Medium
- 6.2.3 Large
- 6.2.4 Mega
- 6.2.5 Massive
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6.3 Infrastructure
- 6.3.1 Cooling Infrastructure
- 6.3.1.1 Air-based Cooling
- 6.3.1.2 Liquid-based Cooling
- 6.3.1.3 Evaporative Cooling
- 6.3.2 Power Infrastructure
- 6.3.2.1 UPS Systems
- 6.3.2.2 Generators
- 6.3.2.3 Power Distribution Unit (PDU)
- 6.3.3 Racks and Cabinets
- 6.3.4 Servers
- 6.3.5 Networking Equipment
- 6.3.6 Physical Security Infrastructure
- 6.3.7 Design and Consulting Services
- 6.3.8 Other Infrastructure
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6.4 End-User
- 6.4.1 IT & Telecommunication
- 6.4.2 BFSI
- 6.4.3 Government
- 6.4.4 Healthcare
- 6.4.5 Other End User
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 AECOM
- 7.1.2 NTT Ltd.
- 7.1.3 Fortis Construction
- 7.1.4 IBM Corporation
- 7.1.5 SAS Institute Inc.
- 7.1.6 Schneider Electric SE
- 7.1.7 Turner Construction Co.
- 7.1.8 ABB Ltd
- 7.1.9 Delta Power Solutions
- 7.1.10 Precomp Singapore
- 7.1.11 Iris Global
- 7.1.12 TNS Asia Pacific PTE Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySingapore 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.
| Tier Type | Tier 1 and 2 | |
| Tier 3 | ||
| Tier 4 | ||
| Data Center Size | Small | |
| Medium | ||
| Large | ||
| Mega | ||
| Massive | ||
| Infrastructure | Cooling Infrastructure | Air-based Cooling |
| Liquid-based Cooling | ||
| Evaporative Cooling | ||
| Infrastructure | Power Infrastructure | UPS Systems |
| Generators | ||
| Power Distribution Unit (PDU) | ||
| Infrastructure | Racks and Cabinets | |
| Servers | ||
| Networking Equipment | ||
| Physical Security Infrastructure | ||
| Design and Consulting Services | ||
| Other Infrastructure | ||
| End-User | IT & Telecommunication | |
| BFSI | ||
| Government | ||
| Healthcare | ||
| Other End User |
Singapore Data Center Construction Market Research Faqs
What is the current Singapore Data Center Construction Market size?
The Singapore Data Center Construction Market is projected to register a CAGR of 3.04% during the forecast period (2024-2029)
Who are the key players in Singapore Data Center Construction Market?
Fortis Construction, ABB Ltd, Precomp Singapore, AECOM and TNS Asia Pacific PTE Ltd are the major companies operating in the Singapore Data Center Construction Market.
What years does this Singapore Data Center Construction Market cover?
The report covers the Singapore Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Singapore Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Singapore Data Center Construction Industry Report
Statistics for the 2024 Singapore Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Singapore Data Center Construction analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
