S’pore to expand beyond 1.4GW data centre capacity amidst AI boom: Teo

Push targets sectors powering over 40% of GDP.

Singapore will expand beyond its existing 1.4 gigawatts of data centre capacity to support demand for artificial intelligence (AI) and cloud workloads, Minister for Digital Development and Information Josephine Teo said.

Speaking at the Nomura Investment Forum Asia, Teo said Singapore needs reliable access to high-performance computing to support its AI plans.

A separate CBRE report revealed that the country's data centre market is operating at almost full occupancy levels, pushing demand to other markets like Malaysia and Thailand.

The government is prioritising the use of AI in four sectors — connectivity, advanced manufacturing, healthcare and finance. “Together, they contribute over 40% of our GDP,” Teo said.

Singapore is also seeking more investment in submarine cables, with new cable projects expected to catalyse at least $10b in overall investment.

In finance, Teo said AI agents are already beginning to automate complex compliance workflows or transact on behalf of users.

The government also plans to train 100,000 workers who combine industry knowledge with practical AI skills. It will also support 10,000 firms in adopting the solution.

“The target audience is not just large multinationals, but the small and medium-sized enterprises that make up 99% of our enterprises and employ 70% of our workforce,” she added.

Meanwhile, Teo positioned Singapore as a ‘gateway’ for companies and investors seeking access to ASEAN, which has a population of over 650 million and a digital economy projected to reach $1.3t (US$1t) by 2030.

“AI solutions tested and deployed here may well find good uses in other parts of our region,” she added.

$1 = US$0.78

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