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ASEAN

Singapore's new data centres must use renewables: can they overcome the hurdles?

The upcoming facilities on Jurong Island may be small in capacity, but have a chance to test new frontiers

Source: The Business Times Singapore · August 26, 2026 at 11:01 PM · AI-assisted report

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Singapore's new data centres must use renewables: can they overcome the hurdles?
Photo: Phalinn Ooi via flickr (BY)

SINGAPORE, JURONG ISLAND, MALAYSIA, ASEAN, 27 AUGUST 2026 —

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Singapore Mandates Renewable Energy for New Data Centres as Malaysia Monitors Impact

Market Impact

SINGAPORE, Aug 26 — Singapore has awarded 200 megawatts (MW) of data-centre capacity to four operators—Equinix, Digital Realty, Keppel Data Centres and ST Telemedia Global Data Centres—each receiving 50 MW for new facilities on Jurong Island. The move, part of Singapore’s second Data Centre-Call For Application tender (DC-CFA2), requires that these facilities be powered by at least 50% eligible green energy pathways, setting a new benchmark for sustainability in the region’s data-centre industry.

Malaysian market observers say the development could influence regional trends, particularly as Malaysia’s own data-centre sector weighs sustainability pressures. Industry players in Malaysia are monitoring Singapore’s approach, which introduces stricter renewable energy requirements that may shape future regulatory expectations across ASEAN. While Malaysia has not announced similar mandates, the shift in Singapore could accelerate discussions on green energy adoption among Malaysian operators.

Under the DC-CFA2 tender, awarded on Aug 21, operators must demonstrate compliance with renewable energy targets, addressing challenges such as price volatility and supply constraints. The facilities, though smaller in capacity compared to existing data centres in the region, are seen as a test case for integrating clean energy into high-demand infrastructure. Details on specific green energy sources or procurement timelines were not disclosed.

Analysts suggest that if successful, Singapore’s model could serve as a reference for other ASEAN markets, including Malaysia, in balancing data-centre growth with sustainability goals. The outcome of these projects may influence future policy directions, though no immediate regulatory changes have been signalled in Malaysia. Further developments are expected as operators finalise plans for the Jurong Island facilities.

Reporting based on The Business Times Singapore. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.