Data centre operators seek adequate time to meet green targets under proposed Bill

Data centre operators in Singapore have called for more time to comply with proposed energy efficiency requirements under a new Digital Infrastructure Bill, ensuring the sustainability and resilience of critical digital infrastructure. During a public consultation period from July 1 to 22, 25 responses were received from data centre operators, cloud service providers, and industry associations.

Most respondents supported the Bill, highlighting the importance of digital infrastructure for Singapore's digital lifestyle. The Bill, introduced in Parliament on September 8, requires major operators and cloud service providers to obtain a licence by mid-2027 and meet power efficiency, incident reporting, and security standards.

Non-compliance could result in penalties of up to $1 million or 10% of annual turnover. The move coincides with Singapore's growing digitalisation and increasing demand for data centre capacity due to artificial intelligence adoption. The Ministry of Digital Development and Information (MDDI) and Infocomm Media Development Authority (IMDA) emphasized the need for disciplined growth in data centre capacity, as these facilities consume significant land, power, and water resources.

Licensed data centres with 10MW of electrical power will require an FDI licence, while those generating over $100 million in annual revenue will also need an FDI licence. DC licensees will need to meet power usage effectiveness (PUE) requirements, which measure energy efficiency, though the specific requirement has yet to be determined.

Data centre operators like Digital Realty requested a transition period to assess sites and implement upgrades without disruption. Industry representatives have called for streamlined licence applications, reporting, and auditing processes, as well as streamlining reporting requirements for cybersecurity incidents.