Things to consider before setting up a data centre in Singapore

By Updated On January 2, 2023 - 6:42 PM No comments

There is a significant focus on using data centers to store and process large amounts of information in today’s corporate world. This major shift in the way businesses manage their data has helped Singapore emerge as one of the key destinations for setting up large-scale data centers. With a blossoming business landscape in recent years, a burgeoning economy, rich natural resources, and a pro-business environment have made it easy for IT developers to conveniently launch data centers in Singapore.

However, this piece aims at shedding light on some critical aspects that need to be considered before going ahead with setting up a data center in Singapore. Here are several things you should know:

1) The temperature factor:

Data center developers should note that Singapore’s humid and tropical climate is the major factor associated with its year-round high average temperatures. Therefore, to prevent overheating, data centres in Singapore operators have to take appropriate measures, such as quickly removing heat from the equipment to avoid getting too hot.

2) The space constraint:

With land being at a premium in Singapore, developers must consider the fact that there are only limited plots of land available for setting up a data centre in Singapore. This effectively means there are fewer options regarding where exactly these facilities can be set up. However, this should not hamper their plans since other areas close to the country’s heartlands can also be considered.

3) Strong competition:

To remain competitive in the marketplace, data centre developers in Singapore need to keep an eye on their competitors and must be able to provide a unique value proposition. Not only that, but they should also be armed with the right insights about the latest technologies, innovation trends, and client preferences to design data centres that can meet client requirements.

4) The stricter rules:

Being a less expensive place to set up a data centre in Singapore

is definitely one of Singapore’s key advantages; however, it can also prove to be something of a double-edged sword since the government has now imposed more stringent guidelines for setting them up. This includes complying with regulatory frameworks like CSA 8000 (which lays down ground rules for safeguarding customer information), ISO 27001 (which establishes information security management standards), etc. Since these are still evolving, developers may need to undertake a trial and error process to find out which of these can help them deliver cost-effective data centres.

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5) The taxation factor:

There is no denying the fact that there are huge savings involved in setting up data centre facilities in Singapore since the government offers significant tax benefits along with other incentives such as rebates on refined petroleum products, lower corporate income tax rates, and exemption from withholding tax for overseas companies. This makes it an attractive destination for many companies looking to set up their operations here.

6) Securing tenants:

One of the biggest challenges data center developers face in Singapore is securing clients or tenants since they need to find out what kind of incentives will be most appealing before they come on board. Additionally, they should keep an eye out for developments in the market to ensure there is no lull before prospective tenants can be found.

7) The talent crunch:

With developers setting up data centres in Singapore

There is a growing demand for highly-skilled professionals who are proficient in various disciplines such as facility management, networking, and security. Developers must then take steps to hire employees who have all these skills and the right motivation to handle sensitive information responsibly.


Singapore’s position as a regional hub for business and finance has made it one of the preferred destinations within Southeast Asia for data centres. That said, developers must keep the points mentioned above in mind to ensure their plans are properly executed.

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