Data centres expected to add pressure on Singapore’s energy supply: survey

Singapore's data center expansion is anticipated to strain the country's energy supply while stimulating demand for energy storage and grid enhancements, according to a recent industry survey. Out of 100 energy sector experts surveyed across Southeast Asia, about 45% indicated that data center growth would pose the greatest challenge to energy supply and infrastructure in Singapore by 2030. Additionally, 31% predicted increased need for energy storage and grid upgrades as the most significant consequences.

The Sustainable Energy Association of Singapore (Seas) conducted this year's State of the Energy Transition survey, which revealed that the energy industry remains cautiously optimistic about the adoption of Artificial Intelligence (AI) in Singapore's energy transition. While 57% of respondents believed AI would significantly accelerate the transition within the next five years, over 35% were currently running AI pilot projects or exploring implementation opportunities. However, data quality and cost were cited as the primary barriers by nearly 60% of respondents.

Seas' Executive Director Kavita Gandhi noted that data centers' energy demand could potentially impact electricity prices and infrastructure development. She highlighted that the supply of clean energy is not keeping pace with the rapid construction of data centers. Only 13% of respondents cited renewable energy deployment as the key impact of data center growth, despite Singapore's efforts to promote green energy in data centers.

The survey also revealed that Singapore mandates at least 50% of allocated data center capacity to be powered by green energy sources.