MPs back tighter data centre regulations but raise questions on competitiveness, sustainability

Members of Parliament (MPs) backed stricter regulations for data centers operating in Singapore, but expressed concerns about the sector's competitiveness and sustainability. The Digital Infrastructure Bill, passed in parliament on October 7, introduced licensing regimes for data centers with a critical IT load of at least 3 megawatts (MW) and major cloud service providers.

During the debate, MPs questioned how the regulations would impact Singapore's competitiveness, sustainability, and the availability of scarce resources like land, power, and water. Senior Minister of State for Digital Development and Information Tan Kiat How emphasized that the government plans to grow data center capacity in a disciplined manner, ensuring that every megawatt of capacity provides the highest economic and strategic value.

MPs like Sharael Taha (PAP-Pasir Ris-Changi) and Edward Chia (PAP-Holland-Bukit Timah) argued that higher standards could be a competitive advantage for Singapore, provided that the regulations do not make the country uncompetitive. Tan Kiat How agreed, stating that good regulation is about having the right rules applied predictably, rather than having the most rules.

The licensing regime will apply to operators of data centers with a critical IT load of at least 3 MW and major co-location and cloud data centers with a critical IT load of at least 10 MW. Compliance with energy-efficiency requirements, including power usage effectiveness, will be mandatory for all data centers. The government aims to minimize administrative burdens on service providers and operators by streamlining operational processes for those covered under the Bill.