Singapore has opened public consultation on a draft law that would, for the first time, place binding sustainability requirements on the country’s major data centre operators, as the government moves to tighten oversight of the digital infrastructure underpinning its economy.
To continue reading, subscribe to Eco‑Business.
There's something for everyone. We offer a range of subscription plans.
- Access our stories and receive our Insights Weekly newsletter with the free EB Member plan.
- Unlock unlimited access to our content and archive with EB Circle.
- Publish your content with EB Premium.
The Ministry of Digital Development and Information (MDDI) and the Infocomm Media Development Authority (IMDA) released the draft Digital Infrastructure Bill on 1 July, seeking feedback from industry and the public before submissions close on 22 July.
The Bill would create two new licensing regimes: one to tighten security and business continuity for “major foundational digital infrastructure” (FDI) services, and another to raise and enforce energy- and resource-efficiency standards for data centre operations.
It signals a decisive shift for the country from voluntary guidelines and industry-led roadmaps to statutory requirements that will shape capital allocation, technology choices and compliance reporting for one of the country’s most energy‑intensive digital sectors.
While Singapore has already introduced the Green Data Centre Roadmap, and refreshed Green Mark standards — Singapore’s official green building rating system — for data centres, MDDI and IMDA say voluntary measures “cannot ensure consistent sustainability outcomes across the sector”.
New licensing regimes
Under the proposed legislation, all data centres with a critical load of 3 megawatts (MW) or more will need a new DC licence, and IMDA will consider energy efficiency, water efficiency and the characteristics of energy sources such as the use of renewables or extent of greenhouse gas emissions when assessing licence applications.
The Bill will also require providers of major FDI services — defined as data centre facility services with a critical load of at least 10 MW, or cloud computing services earning at least S$100 million (US$77.2 million) a year from Singapore users — to obtain a major FDI licence.
These providers will have to implement security measures, business continuity plans, and notify IMDA of cybersecurity incidents or service disruptions.
The Bill would complement, not replace, cybersecurity rules for data centres and cloud services introduced under 2024 amendments to the Cybersecurity Act, which the government said addressed cyber risk but left a gap in oversight of broader operational resilience, such as physical security and business continuity.
Related amendments to the Cybersecurity Act 2018 and its 2024 amendment are also proposed to align definitions between the two frameworks.
Data centres are among the most energy- and water-intensive types of infrastructure, and their footprint has become a growing concern in Singapore, a small, land-scarce nation that hosts one of Asia’s largest data centre markets.
According to a recent Nikkei report, Singapore is projected to draw close to 20 per cent of its national grid capacity for data centers in 2026 — a higher share than any other country — as its AI-driven digital infrastructure boom accelerates.
The city-state paused new data centre developments between 2019 and 2022 over sustainability concerns before resuming under conditions tied to green performance through its ‘call for application’ exercises.
IMDA would administer the new Act, with powers to grant, suspend or revoke licences, issue codes of practice and directions, impose financial penalties for non-compliance, and carry out enforcement and investigation actions.
Detailed technical requirements, including the specific power usage effectiveness (PUE) thresholds, will be worked out through separate regulations and codes of practice after the Bill is passed, following further consultation with operators.
MDDI and IMDA said the draft Bill was shaped by studying overseas regulatory approaches, aligning with existing domestic legislation, and engaging extensively with companies and professionals in the digital infrastructure sector.
