Singapore hits pause on building new data centres; short-term rents up

Singapore

SINGAPORE authorities have nudged data centre players to stop building new ones on this land-scarce island, triggering a rise in short-term rental rates.

A moratorium on constructing new data centres was "implicitly imposed" since early last year during a closed-door session with government agencies and industry players, The Business Times understands.

The regulatory nudge was done so that the government could find a more sustainable way to support the growth of the multibillion-dollar data centre market.

The government is aiming to keep the business growing at a steady pace while ensuring that data centres become more energy efficient.

It remains unclear when the moratorium will be lifted, although some speculate it could end in 2021. With rising demand for storing this "new oil" in the digi…