KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Key Takeaway: Singapore remains a leading data centre hub in Asia-Pacific, but rising costs, scarce land, and limited power supply are straining growth, pushing operators to look toward Johor and regional alternatives.
Market Overview
According to the TDICA Global Data Center Report 2025, Singapore’s live data centre capacity reached 1,002 MW in 2025, yet vacancy rates are just 2%, underscoring a supply crunch. The development pipeline remains limited, with only 246 MW slated — 20 MW under construction and 226 MW in planning.
Pricing Pressures
Colocation costs in Singapore rank among the highest in Asia-Pacific, ranging from US$300–450+ per kW per monthfor wholesale blocks (250–500 kW). In contrast, Johor, Malaysia offers far cheaper pricing starting at US$130 per kW.
Power costs: US$0.281 per kWh
Construction cost index: 142 (Amsterdam baseline = 100)
These factors contribute to Singapore’s premium cost environment compared with neighbouring markets.
Policy and Efficiency Initiatives
Singapore has shifted from its 2019 moratorium on new builds toward a selective, efficiency-driven policy. The Tropical Data Centre Standard (SS 697:2023) promotes higher operating temperatures above 26°C, which can improve cooling efficiency by 2–5% per degree.
National goals over the next decade include:
Power Usage Effectiveness (PUE): ≤ 1.3
Water Usage Effectiveness (WUE): ≤ 2.0 cubic meters per MWh
Despite these measures, Singapore is flagged as a slower market in terms of build speed, hindered by power allocation issues, land scarcity, and complex permitting. In comparison, Malaysia, Thailand, and India typically deliver projects within 12–24 months.
Cross-Border Energy and AI Corridor
The report highlights momentum in cross-border renewable sourcing. For example, DayOne signed a Clean Renewable Energy Supply (CRESS) agreement with Tenaga Nasional Berhad (TNB) in Malaysia for up to 500 MWof green power.
A key development is the emergence of the Singapore–Johor corridor as an “AI PowerHub.” The upcoming Johor–Singapore Special Economic Zone (JS-SEZ), set for 2025, is expected to deepen cooperation in digital infrastructure, renewable energy, and advanced manufacturing.
This model enables operators to retain latency-sensitive and mission-critical workloads in Singapore, while relocating large-scale AI and compute deployments to Johor, where costs and timelines are more favourable.
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