The demand for data center space is rising rapidly in Singapore as companies realize the importance of having a reliable data center that can support their business operations. This has led to increased competition among providers in the region, which is good news for businesses looking to expand their operations. However, some issues still need to be addressed before companies can take full advantage of this opportunity.

Data Center Expansion Issues in Singapore

The first issue is the lack of physical space available for expansion. Companies already have difficulty finding suitable space for their existing operations and, as a result, may not have time to plan for future needs. This means they will continue facing problems when trying to expand their current operations or move into new ones.

Another issue concerns cost management and control. While many options available today make it possible for companies to find affordable prices for their infrastructure needs, most companies still lack the resources to properly manage their costs when negotiating with vendors or service providers.

This means that they may end up paying more than necessary or not saving money where they could have kept it had they been able to negotiate better terms with vendors or service providers earlier.

Singapore Data Center Moratorium

The first issue haunting Singapore data center operators are “Data Center Moratorium.” This moratorium was put in place by the government to prevent the over-consumption of electricity by data centers, potentially leading to an energy shortage. 

The moratorium states that all new projects will not be entitled to any utility services until 2022. The government aims to ensure that there is enough supply for existing and future projects as well as for residents.

Singapore data centers are power provisioning.

There are times when there is an insufficient supply of electricity during peak hours which can lead to blackouts or brownouts (a reduction in voltage). 

One could solve this problem if more options were available regarding power sources, such as solar panels or wind turbines, to generate enough electricity for their operations during these peak hours or even after hours when there is no supply from other sources.

Companies that have already established themselves need to consider this factor when looking at potential locations for their expansion plans. It would be bad for operations to be affected by high energy costs or other environmental issues due to excessive power sources such as coal-fired plants.

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Gas Supply Shortage

Another issue for Singapore data centers is the lack of natural gas supply. This has led to several operators switching to energy sources, such as diesel, or renewable sources, such as solar power. 

Based on the announcement on the official website of the Indonesian Ministry of Energy and Mineral Resources, they will stop supplying gas via pipelines to Singapore in 2023 to meet their domestic needs.

Indonesia is the perfect location for data center expansion

It has a population of 250 million and a gross domestic product of $1.2 trillion, making it one of the largest economies in Southeast Asia.

Indonesia’s robust economy and growing digital economy make it an attractive location for IT companies to expand their operations to meet market demands

You will have many options if you want to expand your existing data center or build a new one. One of these options is Indonesia as a strategic location for data center expansion. If you are considering this option, here are some things you should know:

Indonesia has an abundant energy source

One of the most significant issues businesses face when building new facilities is finding an area where they can get enough power supply. You need an adequate amount of power so that your facility can run smoothly without any interruptions. Indonesia offers abundant power supply options, so you will never have problems keeping up with your energy needs.

Indonesia has excellent internet connectivity rates.

Another critical aspect of any business is its internet connection speed and bandwidth capacity. If your company does not have adequate bandwidth, it may suffer from poor performance issues or even downtime in case of network congestion or outage due to a natural disaster.


Many data center expansion issues are haunting Singapore. There is a high demand for data center expansion, medium-term scenarios’ effect and impact, and rising data center construction costs.

Data center providers in Singapore and data center investors can overcome the problem of data center expansion in Singapore by expanding to Indonesia. This is good momentum; the Indonesian government supports green data center investment. So, don’t let yourself miss this golden opportunity.

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