ARTICLE
22 August 2024

Singapore's Green Data Centre Roadmap – Representing A Necessary Intersection Between Digital Infrastructure And Sustainability

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The demand for digital infrastructure has seen exponential growth in the recent years, largely driven by the larger economic trend of digitalisation and artificial intelligence (AI) being harnessed and integrated into many industries.
Singapore Environment
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Other Author Marianne Yeo, associate director of PKWN

1. Introduction

The demand for digital infrastructure has seen exponential growth in the recent years, largely driven by the larger economic trend of digitalisation and artificial intelligence (AI) being harnessed and integrated into many industries. This has manifested in Singapore being a regional data centre hub with a total capacity exceeding 1.4 gigawatts1.

Notwithstanding strong competition from its neighbours, Singapore remains a preferred choice for data centre investments, owing to Singapore's economic stability and well-developed infrastructure.

At the same time, there is the rise in global awareness on the importance of sustainability. Singapore has in place the Singapore Green Plan 20302, a whole-of-nation effort to build a sustainable future, with the goal of achieving net-zero emissions by the year 2050. Glaringly in contrast to this, it is well-known that data centres are heavy consumers of energy and water.

Hence the birth of the concept of "green data centres", representing a very necessary intersection between the growth of digital infrastructure and sustainability.

Singapore's Green Data Centre Roadmap (GDCR) was launched on 30 May 2024 by the Singapore Infocomm Media Development Authority (IMDA), along with the announcement that Singapore aims to provide at least 300 megawatts of additional capacity for data centres and further additional capacity if green energy is used.

The GDCR is a much-awaited follow-up from Singapore's Digital Connectivity Blueprint3, launched by the IMDA in June 2023 which sets out Singapore's ambition to ensure its digital infrastructure is world-class and future-ready.

2. Key Parameters of a "Green Data Centre"

2.1 Data Centre – Call for Application Exercise in 2023

It may be noted that prior to the issuance of the GDCR, the IMDA and the Singapore Economic Development Board (EDB) had announced on 14 July 2023 that under the pilot Data Centre – Call for Application exercise, they would provisionally award about 80 megawatts of new capacity to four data centres – namely AirTrunk-ByteDance (Consortium), Equinix, GDS and Microsoft – that were able to meet EDB and IMDA's desired outcomes, with competitive propositions to strengthen Singapore's position as a regional hub, as well as contribute to broader economic objectives.

Examples given by the EDB and IMDA include: (a) delivering best-in-class energy efficient performance, including meeting the Green Mark DC Platinum Certification (see note 6 below on the BCA-IMDA Green Mark for Data Centres); (b) expanding international connectivity, including through facilitating an increase in submarine cable capacity and setting up new carrier neutral exchanges; (c) anchoring key compute capacities while linking with offshore data centres; and (d) significant economic commitments to Singapore beyond the direct data centre investments.4

2.2 Key Parameters under the GDCR

Under the new GDCR, the IMDA and the EDB will allocate the new data centre capacity to operators who prioritise "both sustainability and economic value".5 The GDCR further emphasises supporting data centres which adopt best-in-class technologies.

The GDCR sets out key parameters on what a "green data centre" would look like:

  1. energy efficiency at both facility and compute/IT equipment levels;
  2. leveraging of green energy, i.e. low carbon energy, to power the data centre; and
  3. water efficiency.

2.3 Energy Efficiency

The GDCR sets out two ways in which the energy efficiency of data centres may be improved: (a) at the hardware (facility level); and (b) at the software (compute/IT equipment) level.

Facility-level energy efficiency refers to the energy efficiency of Mechanical and Electrical (M&E) systems. The IMDA has set a target for data centres to achieve a Power Usage Effectiveness (PUE) of less than or equal to 1.3 at 100% IT load over the next 10 years.

The IMDA has indicated that facility-level energy efficiency can be improved by way of upgrading M&E equipment, applying tropical data centre methodology, tailoring cooling solutions, configuring data centres to support diverse cooling solutions, and deploying smart energy optimisation tools.

Compute/IT equipment energy efficiency refers to the energy efficiency of equipment such as servers (chips and memory) and networking that run the compute, as well as the software that runs on the equipment. This optimises the overall energy consumption, with more compute delivered for the same amount of power consumed.

The IMDA has set a target for only energy-efficient compute/IT infrastructure to be used in data centres over the next 10 years which end-users should note:

End-users should aim to operate compute/IT equipment efficiently by (a) adopting appropriate power settings, (b) optimising server utilisation through virtualisation techniques and workload consolidation, (c) maximising compute utilisation using green computing, and (d) applying carbon-efficient software design.

To achieve the aforementioned energy efficiency targets, the IMDA will co-develop enhanced standards and certifications with the industry.

This will include refreshing the BCA-IMDA Green Mark for Data Centres (a certification rating scheme awarding operators that have deployed Green Data Centre best practices and demonstrated superior energy and environmental performance6) in relation to facility-level energy efficiency by end-2024; as well as introducing standards for IT equipment energy efficiency and liquid cooling by 2025 to facilitate and encourage wider adoption of these technologies in Singapore.7

2.4 Green Energy

In addition to improving the energy efficiency of data centres, the GDCR also highlights the need to leverage green energy (i.e. low-carbon energy) to meet the significant power intake required for data centre operations.

The IMDA has stated that, for a start, recognised green energy sources will comprise bioenergy, fuel cells with carbon capture, low-carbon hydrogen and ammonia, and vertical building integrated photovoltaics/building applied photovoltaics.

Data centre operators and green energy suppliers are encouraged to forge partnerships to create a cycle of demand and supply for green energy.

The IMDA has also stated that it will provide the operating parameters for such green energy sources in partnership with other Singapore agencies such as the Ministry of Trade and Industry and the Energy Market Authority. Data centre operators can also collaborate with academia in driving innovation in areas such as cooling technologies, green energy computing and low-carbon energy.

2.5 Water Efficiency

Apart from energy, water is another significant resource used by data centres, largely to remove heat generated by the IT equipment. The GDCR therefore highlights the importance of managing water efficiency.

The IMDA earlier identified a median Water Usage Effectiveness (WUE) of 2.2 m3/MWh for Singapore data centres in 2021, which it intends to reduce to 2.0 m3/MWh or lower over the next 10 years. The focus will be on optimising water consumption in cooling towers (which account for up to 97% of a data centre's water consumption).

Data centres with water consumption of at least 60,000 m3 per year are also required to comply with the Mandatory Water Efficiency Management Practices of the Public Utilities Board (PUB), which includes installing water meters at key areas to track water usage, as well as submitting a Water Efficiency Plan to the PUB.

3. Government Incentives to Achieve Energy Efficiency

The Singapore Government will support both data centre operators and end-users to achieve energy efficiency by enhancing existing incentive schemes and introducing new incentive schemes.

Some of these include:

  1. enhancing the existing EDB Resource Efficiency Grant for Emissions, which currently provides co-funding support corresponding to the level of reduction in emissions from non-carbon dioxide greenhouse gases;8
  2. enhancing the existing EDB Investment Allowance for Emissions Reduction, which currently grants tax exemption on qualifying capital expenditure incurred resulting in measurable and verifiable carbon abatement;9 and
  3. implementing a new Energy Efficiency Grant for data centres, to be introduced by end-2024, to facilitate the adoption of energy-efficient compute/IT equipment.10

The PUB has in place an existing Water Efficiency Fund which supports companies aiming to achieve and improve water efficiency.

This funding programme involves (I) a water efficiency assessment to identify opportunity for improvement in water efficiency; (ii) a pilot study to determine the feasibility of implementing the project/technology; (iii) recycling/use of alternate water sources for realisation of water savings; (iv) adoption of water efficient equipment; and (v) a full-scale recycling plant with innovative solutions or emerging/recently developed technologies.11

4. Conclusion – A Green Data Centre Ecosystem for the Future

The GDCR ought to be viewed as a "living document", as highlighted by the IMDA, which welcomes the industry to partner with them to pioneer the journey to achieve sustainable growth.

These industry partnerships must be fostered at every level of the data centre ecosystem – not only including data centre operators and end users, but also extending to suppliers of systems and equipment, sustainability solutions providers, energy suppliers and academia.

There must be an industry-wide change in mindset in order for the GDCR to meaningfully achieve integrating sustainability into the digital infrastructure industry. How "green data centres" will look in the future very much depends on how key players drive innovation and push boundaries.

Footnotes

1. Charting green growth pathways at scale for data centres in Singapore, Infocomm Media Development Authority (30 May 2024). https://www.imda.gov.sg/resources/press-releases-factsheets-and-speeches/factsheets/2024/charting-green-growth-for-data-centres-in-sg.

2. Our vision, Singapore Green Plan. https://www.greenplan.gov.sg/vision/.

3. Singapore's Digital Connectivity Blueprint, Infocomm Media Development Authority (5 June 2023). https://www.imda.gov.sg/-/media/imda/files/programme/digital-connectivity-blueprint/digital-connectivity-blueprint-report.pdf.

4. 4 Proposals Selected from Data Centre Application, Infocomm Media Development Authority (14 July 2023). https://www.imda.gov.sg/resources/press-releases-factsheets-and-speeches/press- releases/2023/four-data-centre-proposals-selected-as-part-of-pilot-data-centre-call-for-application.

5. Speech by Deputy Prime Minister Heng Swee Keat at the Asia Tech x Singapore (ATxSG) 2024 opening ceremony on 30 May 2024, Prime Minister's Office Singapore (30 May 2024). https://www.pmo.gov.sg/Newsroom/DPM-Heng-Swee-Keat-at-the-Asia-Tech-x-Singapore-2024-Opening-Ceremony.

6. BCA-IMDA Green Mark for Data Centres Scheme, Infocomm Media Development Authority (10 July 2024). https://www.imda.gov.sg/how-we-can-help/bca-imda-green-mark-for-data-centres-scheme.

7. Charting green growth pathways at scale for data centres in Singapore, Infocomm Media Development Authority (30 May 2024). https://www.imda.gov.sg/resources/press-releases-factsheets-and-speeches/factsheets/2024/charting-green-growth-for-data-centres-in-sg.

8. Resource Efficiency Grant for Emissions (REG(E)), (no date). https://www.edb.gov.sg/content/dam/edb-en/how-we-help/incentive-and-schemes/Information%20-%20Resource%20Efficiency%20Grant%20for%20Emissions.pdf.

9. Speech by MOS Low Yen Ling at the Second Reading of the Economic Expansion Incentives (Relief from Income Tax)(Amendment) Bill 2022, Ministry of Trade and Industry Singapore (14 February 2022). https://www.mti.gov.sg/Newsroom/Speeches/2022/02/Speech-by-MOS-Low-Yen-Ling-at-the-Second-Reading-of-the-Economic-Expansion-Incentives-Bill.

10. Request for Information (RFI) – Energy-Efficient Data Centre IT Equipment, Infocomm Media Development Authority (12 June 2024). https://www.imda.gov.sg/proposal-submission/request-for-info-energy-efficient-data-centre-it-equipment.

11. Water Efficiency Fund, Public Utilities Board, Singapore's National Water Agency (no date). https://www.pub.gov.sg/Public/WaterLoop/Water-Conservation/Incentives-and-Grants/Water-Efficiency-Fund.

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