New Digital Infrastructure Bill puts data centres under licensing regime

Draft law allows future rules on IT equipment and water efficiency.

The Singapore government is seeking public feedback on the draft Digital Infrastructure Bill, which will require key data centre and cloud service providers to meet new licensing, security, resilience, and sustainability requirements.

Under the proposal, providers of major foundational digital infrastructure services will have to apply to the Infocomm Media Development Authority (IMDA) for a licence, according to the Ministry of Digital Development and Information.

This will cover data centre facility services with a critical IT load of at least 10 megawatts (MW), where the facility serves third-party customers.

A separate licensing regime will also be introduced for data centre operators with a critical IT load of at least 3MW. Operators that qualify under both regimes will need both licences.

Cloud computing services will be covered if they generate at least $100m in annual revenue from Singapore users on average over the preceding three years.

Licensed service providers will be required to implement physical and cybersecurity measures, as well as business continuity and disaster recovery plans.

They will also have to notify IMDA of cybersecurity incidents or service delivery disruptions.

In addition, the proposed reform will allow the authority to introduce future requirements on IT equipment energy efficiency and facility-level water efficiency.

It will also amend the Cybersecurity Act 2018 and the Cybersecurity (Amendment) Act 2024 to align the definitions of the foundational digital infrastructure service and the data centre facility service.

Public submissions on the draft bill are open until 22 July at 10 am.

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