Speech by SMS Low Yen Ling at ST Engineering Data Centre Groundbreaking Ceremony

Mr Teo Ming Kian, Chairman, ST Engineering,

Mr Vincent Chong, Chief Executive Officer, ST Engineering,

Distinguished guests,

Ladies and gentlemen,

Introduction

1. Good afternoon. Thank you for inviting me to celebrate the groundbreaking of ST Engineering’s newest data centre (DC), which is its fourth in Singapore.

2. Digitalisation has transformed our economy and society. Today, the digital economy contributes about 17% to Singapore’s gross domestic product (GDP) and is well-positioned to grow even more. Data centres are crucial enablers of the digital economy. They form the backbone to power up and support the data-driven needs of our enterprises and the broader economy.

3. I am heartened to see ST Engineering, our home-grown technology and engineering enterprise, invest in this facility. The company is leading the way in paving a path towards a greener digital future while bolstering our AI aspirations.

4. This seven-story, 6,000-square-foot (sqft) facility will increase ST Engineering’s total data centre portfolio to 30 megawatts (MW) across three strategic zones in Singapore. When operational by 2026, this DC will further bolster our local infrastructure and expand our digital economy.

An AI-ready DC to host more complex and valuable AI workloads

5. Last year, our then-DPM and now PM Lawrence Wong launched Singapore’s National Artificial Intelligence Strategy (NAIS) 2.0. The pace of AI development has been relentless, with significant advancements in AI technology and its adoption. Generative AI holds great potential. Hence, we must invest now to seize the vast opportunities it will bring and harness AI for the good of our economy.

6. The NAIS 2.0 outlines our refreshed approach to positioning Singapore as a leader in AI. We are making ambitious investments, committing up to $500 million to support our local enterprises' access to computational resources for AI innovation. To enable this, we require robust, next-generation digital infrastructure, such as advanced networks and DCs, to support AI activity and foster value creation.

7. I commend ST Engineering’s proactive investments in building an AI-ready DC. This DC will, in particular, accommodate high-power density AI and Graphics Processing Unit-based workloads with capacities over 20KW per rack.

Leading-edge design for Sustainability

8. As Singapore’s data centres grow to house greater computing power, the government is keenly aware of the resource-intensive nature of data centres. Singapore has made international climate commitments to achieve peak carbon dioxide (CO2) equivalent emissions by 2030 and net zero by 2050. We will balance the growth of the sector with our sustainability commitments by facilitating DC operators to utilise from low-carbon energy sources and accelerate energy efficiency through new and innovative methods. To stay at the forefront of data centre sustainability, we need collective commitment and action to manage the impact DCs have on our environment:

a. DCs are collectively our biggest indirect carbon emitters, contributing up to 82% of Singapore’s I&C sector emissions and 7% of our total electricity consumption.

b. DCs are also heavy users of water and power, a challenge shared by users worldwide.

9. I am glad to hear that ST Engineering has implemented several measures to enhance this facility's sustainability and energy efficiency. These innovative solutions are vital to the sustainable development of DCs in our digital economy.

a. This facility will use advanced cooling technologies, such as immersive and liquid cooling. These technologies are crucial in managing the high heat and power requirements as DCs deploy more GPUs to cope with AI workloads.

b. STE’s fourth DC will operate with a power usage effectiveness (PUE) below 1.3. This meets the rigorous Platinum Standards of the BCA-IMDA Green Mark for Data Centres Scheme.

c. Additionally, the front façade of this data centre is equipped with solar panels that will power up the lighting for the entire building. This is a first in Singapore.

10.  I commend these significant steps taken by ST Engineering towards building a robust and sustainable data infrastructure.

Encourage stronger industry-academia-government collaboration

11. Moving forward, the government has set plans to grow the DC sector. We introduced the Green Data Centre Roadmap for sustainable growth earlier at Asia Tech x Singapore in May 2024. This roadmap charts a pathway for the continued and sustainable growth of data centres in Singapore.

12. As the DC sector expands, we must continue innovating and pushing the boundaries to accelerate energy efficiency. Exploring new green energy sources to power data centres will support Singapore’s transition to sustainable energy.

13. Companies are not in this alone. The Government is committed to supporting greater industry-academia-government collaboration to accelerate innovations.

a. For example, the Sustainable Tropical Data Centre Testbed facility, established in November 2023, advances cutting-edge research in data centre innovation. Industry partners actively support ongoing projects led jointly by NUS and NTU. Through the National Research Foundation (NRF), the Singapore government has committed about S$10 million in funding for these projects.

14. Our goal is to partner with industry to push boundaries on two fronts – accelerating energy efficiency at both the hardware and software levels and scaling the deployment of green energy to expand capacity and maximise opportunities.

Conclusion

15. I am honoured to be part of this significant occasion to mark the groundbreaking of ST Engineering’s fourth DC. This facility is a fine example of powering a greener digital future that supports our AI ambitions.

16. Congratulations, ST Engineering. I am confident that this DC will further sustainably bolster the growth of our digital services and enhance our capabilities as a smart nation.

17. Thank you.