1. Introduction
ASEAN’s data centre boom
A surge in demand for data storage, cloud computing, and artificial intelligence has driven rapid growth in ASEAN’s data centre sector in recent years. Malaysia, Indonesia, and Thailand are leading this growth, with Johor, Batam, Bangkok, and the Eastern Economic Corridor emerging as new key data centre hubs offering favourable investment conditions, land availability, and expanding energy capacity.
Singapore’s measured, sustainability-focused growth
In contrast, growth in Singapore’s data centre sector has been considerably more measured, reflecting the country’s land, power, and water constraints. No new capacity has been allocated since the award of approximately 80 MW to four operators under the pilot Data Centre – Call for Application scheme (DC-CFA) in 2023. New projects will be subject to stringent regulatory approval processes and must meet high standards of energy and carbon efficiency, land-use optimisation, and technological innovation. Existing data centres are similarly expected to align with national sustainability goals and evolving industry standards.
Looking ahead – DC-CFA 2 and regional integration
Despite the highly selective and competitive application and evaluation process for new data centres, the second phase launch of the DC-CFA (commonly referred to as the DC-CFA 2) remains widely anticipated (along with the building of Singapore’s largest green data centre park on Jurong Island – see our earlier alert, as Singapore remains an attractive destination for green data centre investment, supported by robust digital infrastructure, extensive subsea cable connectivity, political stability, and a strong commitment to sustainable growth.
At the regional level, the acceleration of energy and digital integration is a key theme at ASEAN-level meetings, highlighting the importance of closer collaboration amongst member states in these key areas. Notable initiatives in focus include (i) the ASEAN Power Grid (APG), which promotes renewable energy sharing, grid stability, and cross-border electricity trade amongst members states, and (ii) the ASEAN Digital Economy Framework Agreement, which seeks to facilitate cross-border data flows and harmonise digital trade rules. Singapore stands to benefit from improved integration and collaboration, particularly through greater access to (and clearer governance of) low-carbon electricity imports and cross-border digital services.
Against this backdrop, this article provides an overview of the primary roles and responsibilities of the key regulators shaping Singapore’s data centre industry.
2. Main regulators; primary roles
a. Infocomm Media Development Authority (IMDA)
Roles: Jointly overseeing approval of new data centre projects under the DC-CFA with the Economic Development Board (EDB); leading implementation of the GDCR
The IMDA plays a key role in driving green and energy-efficient data centre development, as well as in regulating operators that provide network and telecommunication services, amongst others.
The IMDA has recently announced further industry standards and initiatives, including:
- Green Data Centre Roadmap (GDCR) – A “living document” that charts the continued growth of green data centres and aims to add 300 MW of additional capacity in the near term with greater emphasis on deploying green energy, energy-efficient, and tailored cooling systems and equipment.
- Refreshed Green Mark for Data Centres 2024 (GDMC:2024) – A certification scheme jointly developed with the Building and Construction Authority to recognise, rate, and benchmark operators that have adopted green practices and demonstrated superior sustainability and environmental performance.
- Energy-efficiency grants – Data centre end-users may be entitled to monetary support for the adoption of energy-efficient equipment that is either pre-approved (for the base tier) or demonstrates energy savings above 350 tonnes lifetime carbon abatement (for the advanced tier).
- Singapore Standard on Energy Efficiency of Data Centre IT Equipment (SS 715:2025) – An industry standard aimed at supporting data centre users in utilising IT equipment that meets international energy efficiency standards and to save energy consumption by at least 30%.
- Tropical Data Centre Standard (SS 697:2023) – A standard developed by an expert working group to help data centres gradually increase operating temperatures to 26°C and above, and to achieve 2% to 5% cooling energy savings with every 1°C increase in operating temperature.
Further, the IMDA has statutory powers to issue and monitor compliance with codes of practice, standards of performance, and advisory guidelines in support of the performance of its functions. The most recent advisory guidelines published include the Advisory Guidelines for Cloud Service Providers and Data Centres (for details, please see our earlier client alert.
b. Energy Market Authority (EMA)
Roles: Overseeing management of Singapore’s power grid; managing import of power and connection with regional power grids
The EMA is responsible for the creation of a market framework in respect of electricity, gas, and other energy utilities, as well as the development of the electricity and gas industries.
In anticipation of the expected increase in demand for power (including from data centres), the EMA announced on 27 October 2025 several initiatives to future-proof Singapore’s power grid. These include:
- Virtual power plant1 (VPP) regulatory sandbox – Following a proposal to set up a regulatory sandbox for VPPs in 2024, the EMA has now launched a pilot VPP regulatory sandbox comprising Blue Whale Energy, Nanyang Technological University, and SP Group to test the technical and operational capabilities of VPPs in providing (consolidated) energy and ancillary services to Singapore’s electricity grid over a period of two years.
- Energy Grid 3.0 grant call – The EMA has launched a grant call for proposals (to be submitted by 8 December 2025) to enhance grid planning and operations capabilities, manage an increasingly complex grid with greater renewable penetration and distributed energy resources, and develop solutions to manage new needs of the power system, such as inertia (resistance of the electrical grid to sudden changes in frequency).
- SP Technology Laboratory – The EMA and SP Group are exploring the establishment of the SP Technology Laboratory to develop solutions to address focus areas under the Future Grid Capabilities Roadmap, which was jointly launched in April 2025.
The EMA has also been a key driver in advancing regional power grid initiatives (including the APG) and has set a target to import around 6 GW of low-carbon energy by 2035. To date, the EMA has issued conditional approvals to several projects to import renewable power from ASEAN member states such as Vietnam and Indonesia and also appointed Singapore Energy Interconnections Pte Ltd to assess regional power infrastructure projects.
c. EDB
Roles: Jointly overseeing approval of new data centre projects under the DC-CFA with IMDA; ensuring alignment with broader economic and sustainability goals
The EDB oversees the strengthening of Singapore’s position as a green data centre and AI infrastructure hub.
In addition to leading the pilot DC-CFA process with the IMDA, the EDB administers the Resource Efficiency Grant for Emissions, a funding scheme that provides support to data centres in partially offsetting costs of adopting emissions reduction projects.
d. Urban Redevelopment Authority (URA)
Roles: Designating and zoning land for data centres
The URA plays a strategic role in Singapore in overseeing land allocation and zoning for new facilities. The URA ensures that data centres are developed in areas with sufficient power, connectivity, and infrastructure capacity, while optimising the use of land.
Under the URA’s published guidelines and as part of Singapore’s draft master plan, data centres are considered e-business activities classified as industrial uses that can be developed in areas zoned “Business Park”, “Business 1”, and “Business 2”. Prior planning permission for an assessment (in certain instances – such as the floating data centre at Loyang – an environmental impact assessment) must be made in consultation with the relevant technical agencies on the suitability of the premises for such uses would be required.
e. Public Utilities Board (PUB)
Roles: Managing water resources and water usage efficiency as the national water agency
The PUB plays a key role in managing water resources for data centres. Under the PUB’s Mandatory Water Efficiency Management Practices, large water users (such as data centres) must submit details of their water consumption, business activity indicators, and water efficiency plans to the PUB annually. The PUB then uses the collected data to develop sectoral water efficiency benchmarks. As of December 2024, median water usage efficiency of data centres (as published by the PUB) was 2.2 m3/MWh.
Under the GDCR, the IMDA will work with the PUB to help new and existing data centres achieve a water usage efficiency of 2.0 m3/MWh or lower over the next 10 years, through:
- Optimising cooling towers’ water consumption
- Implementing best practices and water efficiency initiatives
f. National Environment Agency (NEA)
Roles: Ensuring a clean and sustainable environment for Singapore
As a key driver of the Singapore Green Plan 2030, the NEA plays a leading role in collaborating with other regulators to monitor and promote energy efficiency and ensure adherence to emissions and waste management standards.
At the macro level, the GDCR and the various sustainability-linked initiatives led by the above-mentioned regulators are expected to align with national targets outlined in the Singapore Green Plan 2030.
Conclusion
As illustrated above, Singapore’s data centre sector is guided by an integrated regulatory framework that holistically considers Singapore’s land, energy, and water constraints, environmental sustainability, and economic development objectives. By encouraging innovation, operational efficiency, and environmentally responsible practices, the framework fosters selective and sustainable growth, reinforcing Singapore’s status as a hub for cutting-edge data centre operations.
1. The EMA defines a virtual power plant as a digital platform capable of controlling, optimising, and aggregating a network of distributed energy resources (DERs – small power generation units installed by consumers to produce, store, or use electricity) across various locations, so that they can operate collectively as a single power generator to provide services to the grid. VPPs have the potential to respond to grid signals and optimise the utilisation of existing DERs by enabling these assets to generate revenue streams beyond their primary functions.
In-depth 2025-280
