THE FUTURE OF DATA CENTRES IN THE FACE OF CLIMATE CHANGE - Research - SUPPORTED BY
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Research
THE FUTURE OF
DATA CENTRES IN THE FACE
OF CLIMATE CHANGE
SUPPORTED BY:
The ongoing global pandemic has shone a light on how dependent our economies have become on digital technology. With rapid digitalisation and the surge in demand for cloud-based services across the region, Southeast Asia is set to be the fastest growing region for the co-location of data centres over the next five years. Yet, the industry has among the highest carbon footprints in the business world today. How can we decarbonise even while building better cloud solutions? This white paper explores the viable solutions available to help data centre operators fight the rising tide of environmental challenges. “The future of data centres in the face of climate change” is a white paper written and produced by Eco-Business Research, the research arm of Eco-Business, and supported by Digital Realty. Eco-Business is the leading media and business intelligence company serving Asia Pacific’s sustainable development community. Our platforms include the award-winning Eco-Business.com site, custom publications, research and high-impact bespoke events catered to deepen discussions on sustainability. Credits: Author: Parita Chitakasem Editors: Neo Chai Chin and Junice Yeo Advisor: Jessica Cheam Designer: Philip Amiote Image Credit: DepositPhotos ©2020 Eco-Business. All rights reserved. Contains Eco-Business’ Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Eco-Business. For more information about our products and services, please contact us at: Eco-Business Pte Ltd The SDG Collaborative @ Bridge+, 2 Science Park Drive, #01-08, Ascent, Singapore 118222 +65 6250 2488 partners@eco-business.com http://www.eco-business.com
TABLE OF CONTENTS Foreword by Digital Realty and Eco-Business 5 Key takeaways 9 Executive summary 11 All eyes on Southeast Asia 11 Spotlight on Singapore 12 Key challenges 14 Viable solutions to sustainable growth 20 Impact of Covid-19 32 Spotlight on Malaysia and Indonesia 34 Attitudes towards more sustainable data centres 38 Future outlook and conclusion 41 APPENDIX 1: Detailed summary of online survey 44 APPENDIX 2: Research sources 50
FOREWORDS
The onset of Covid-19 has triggered the acceleration of digital transformation.
It has also highlighted the invaluable role of data centres as the central FOREWORD BY
nervous system of the digital economy. Asia Pacific is set to be the biggest
market for data centers by next year, with a total market size to be around DIGITAL REALTY
US$28 billion by 2024 for colocation data centres. Southeast Asia (SEA) is one
of the fastest growing regions globally and will be a key driver of the APAC’s
data centre market, representing around 13% of the region’s total market size.
The region’s data centre market continues to grow rapidly but we also need to
be cognisant of the high energy required to power them. The importance of
sustainable data centres is further exemplified by their high cooling needs,
especially in SEA’s tropical climate. Cooling needs account for 35 to 40% of total
data centre energy demand, making energy efficient cooling technologies a key
solution for data centre operators to reduce energy consumption. Consumers
are also increasingly environmentally conscious. Even companies which have
been putting sustainability on the back end are now making it a priority.
More companies are looking to invest in data centres that meet their goals as
sustainability targets become more ambitious. This has cast a spotlight on
green data centres. We value the importance of sustainability at Digital Realty
and ensure our data centres are green, energy efficient, while meeting the
demands of digital expansion at the same time.
Digital Realty’s upcoming facility in Singapore (SIN12) reflects our strong
commitment to industry-leading design standards while also being sustain-
able. The facility will be equipped with efficient cooling system design and
controls, which aim to minimise evaporation losses and achieve the most
competitive power usage effectiveness (PUE) for a commercial data centre in
Singapore. We’re also ramping up our sustainable efforts in other APAC facili-
ties as we expand our regional presence, having recently announced new
facilities in Korea, Hong Kong and Australia. As a company, we are dedicated
to bring our emissions in-line with a significantly below two-degree climate
change scenario by 2030. Mark Smith
Looking ahead, I believe it’s best for all members of the data centre communi- Managing Director
ty to work closely together, share their expertise, and leverage each other's Asia Pacific at Digital Realty
strengths to strive towards being more sustainable. Data centre players
should also move away from conservative approaches and embrace modern
technologies, such as liquid cooling solutions and Artificial Intelligence,
which can radically help improve energy efficiency.
We’re proud to work with Eco-Business on this whitepaper amidst rising
awareness of sustainability in the industry. The whitepaper explored viable
solutions which can help data centre operators achieve sustainable growth
within Southeast Asia. I hope this report will provide you with valuable
insights as we work towards reducing our carbon footprint.
5
Sustainable practices and environmental stewardship have evolved to become
a priority in the global economy. Businesses have shifted their focus on sustain- FOREWORD BY
ability, integrating it as a core aspect of their enterprise business strategy.
DIGITAL REALTY
With the rapid growth of the digital economy, the demand for purpose-built
data centres is growing in lock step. When taken as a class of building, data
centres are among the highest consumers of power. It’s more critical than
ever for enterprises to maximize efficiency and seek clean energy solutions for
their data centre infrastructure.
While efforts to improve the energy efficiency of data centres—such as cooling
system upgrades, expanding the operating parameters of data halls, and
optimising air flow by using smart sensors and controls—will remain an
important area of focus, organisations are also capturing significant sustain-
ability gains by switching to clean energy. With consumers becoming increas-
ingly aware and interested in social and environmental issues, it is all the
more imperative that organisations look to renewable and carbon-free
energy as a sustainable resource for the long term.
Implementing green practices in data centres not only benefits the planet but
is also good for business. The use of renewable energy resources can go a long
way in helping businesses attract and retain customers while helping them
achieve sustainable objectives.
As a company, we are committed to bring our emissions in-line with a signifi-
cantly below two-degree climate change scenario by 2030. Some of our
notable sustainability initiatives include our Global Renewable Energy
programme which aims to make 100% renewable energy available to custom-
ers. Additionally, Digital Realty became the first data centre operator of our
size and global reach to commit to setting a target with the Science-Based
Targets Initiative (SBTi).
We are excited to share the findings of our joint study with Eco-Business in
Southeast Asia (SEA). It is encouraging to see that most customers in the
Aaron Binkley
region view sustainability as a key consideration when choosing a data centre Senior Director
provider. We believe business success and environmental stewardship go Sustainability Programme
hand-in-hand and sustainable innovation will play a critical role in the growth at Digital Realty
of the data centre industry in Southeast Asia.
6
If there is one thing that Covid-19 has proven, it is that data has become an
indispensable part of modern life and business operations. FOREWORD BY
Every day, millions of digital transactions happen behind the scenes without ECOBUSINESS
us noticing. But as we continue to grow products and services in this digital
economy and rely on it to feed our human connections, we cannot ignore the
growing energy footprint and planetary impact that goes along with it.
This new white paper, produced in partnership with Digital Realty, breaks new
ground in highlighting the pressing challenges faced by the data centre indus-
try as it expands to meet the rising global need for data. This is especially
challenging in a region such as Southeast Asia where the tropical climate and
policy environment does not necessarily provide the easiest of conditions.
But Southeast Asia is home to the fastest-growing economies in the world,
and its rapid development will accelerate its demand for data services. Set
amid this context, it is crucial that data centre providers find a way to meet
this need while ensuring that they are playing a part in helping countries meet
their climate targets.
To this end, the white paper outlines the significant opportunities and
pathways available for the sustainable growth of the industry. Our findings
reveal a key message: Technology that can reduce the carbon footprint and
energy intensity of data centres is already available, or fast emerging.
Governments need to provide policy environments that allow the industry to
step up and accelerate solutions such as the wider adoption of renewable
energy, the use of hydrogen as a clean fuel source, and other efficient
cooling methods.
Regulators need to create the right set of incentives to get operators and their
clients to adopt best-available technologies, while data centre players must
work with researchers to test-bed and scale up low-carbon solutions. Jessica Cheam
We hope this white paper will spark conversations in the region and spur Managing Director
further action among business, government and wider society to achieve the Eco-Business
common goal of creating thriving digital economies while ensuring a resilient
and sustainable future.
7
KEY TAKEAWAYS
1 The acceleration
of digital transfor-
mation and exponen-
2 Solar energy is
the stand-out
source of clean energy
3 Major technologi-
cal, research and
innovation milestones
tial growth in data in Southeast Asia open up opportunities
demand in Southeast to significantly reduce
Asia show no signs of The region is witnessing several energy consumption
promising developments in
abating renewable energy. Solar
New developments, most
energy stands out in terms of
The Covid-19 pandemic has notably in cooling technologies
its sizeable potential supply.
intensified the appetite for and smart innovations,
data and underscored the present viable solutions to
This trend is seen in Indonesia
importance of digital tech- radically improve energy
and Malaysia, which exhibit
nology and data centres. efficiency across the data
enormous future capabilities
This presents the industry centre industry.
in generating solar energy, as
with a growing challenge as well as in Singapore, which
it finds ways to balance More funding for research
although is land-constrained
growth with the urgency to and development is needed,
can find ways to increase its
tackle climate change and and greater uptake in these
solar energy supply through
reduce its environmental new technologies is required
both domestic production
impact. on a wider scale across the
and imports.
region.
4 Tech companies and multinational third
party data centre service providers lead
the way in sustainable growth
5 All members of
the data centre
ecosystem need to
work together
Global tech giants Microsoft, Google, Amazon and
Facebook, and other multinational data centre service With all parties in the region
providers,are setting ambitious targets to reduce their collaborating and sharing
carbon emissions and help the industry meet the United expertise, the industry will be
Nations Sustainable Development Goals. in an ideal position to achieve
sustainable data centre
These set a positive example for the rest of the industry, growth and consolidate its
which should be encouraged to set their own sustainabil- strength in the global data
ity targets. This will not only contribute towards climate centre market.
action, but also significantly reduce costs in the long
term, and build greater credibility among customers.
9
EXECUTIVE SUMMARY
The Covid-19 pandemic has triggered an The use of seawater for cooling, as well
unparalleled acceleration in digital as underground spaces for data centre
transformation and underscored the
invaluable role of data centres in the
development in the region, are also
being assessed. In addition, experts are ALL EYES ON
face of global disruptions. At the same
time, there is rising global awareness of
mulling the possibilities of running data
centres efficiently using primarily SOUTHEAST ASIA
the urgency to address climate change natural cooling in Southeast Asia's
and decarbonise our economies. tropical climate. Southeast Asia is one of the
fastest-growing markets for data
Southeast Asia is a prime market for For continued industry growth, govern- centres in the world. According to
data centre development and Singa- ment authorities need to provide a report by Cushman & Wakefield,
pore, in particular, continues to drive its regulatory certainty and set out a the overall Asia Pacific co-location
growth. However, the country’s thriving long-term roadmap for data centre data centre market size will be
technology industry and high data development that takes into account its worth US$28 billion in 2024,
centre demand has contributed to its climate impact. Government support for overtaking regions such as North
energy consumption per capita being technological innovations such as America to become the largest
one of the highest in the world. hydrogen will help data centre develop- worldwide.
ers and operators integrate these
Singapore needs to address several sustainable features into the design and Southeast Asia is a key driver,
challenges if it is to remain a competi- siting of their data centres. accounting for an estimated 13 per
tive and sustainable market for data cent of the region’s total market
centres. Its limited land size, tropical Emerging markets Malaysia and size in value terms. The region is
climate, lack of cost-effective renewable Indonesia also show huge potential. If home to many fast-moving
energy supply, and shifting policies for investors are provided with political dynamic cities undergoing rapid
data centre development — in particu- stability and the right policies, we can transformation. Its economies are
lar, a moratorium on new data centres expect to see strong and sustainable heavily characterised by social
,which has been put in place until 2021 growth in data centres. media, TV and video content
— are key challenges impeding the streaming, e-commerce and bank-
development of data centres. Experts interviewed emphasised that ing, which all require robust IT
industry players need to be bolder in infrastructure and data networks
But there are solutions today which can testing and integrating new technologies to support its growth.
help achieve greener, more sustainable to raise the efficiencies of data centres.
data centre operations. These include Lastly, observers note that greater Businesses continue to rapidly
measures to increase renewable energy collaboration across the entire system — expand into and within Southeast
supply, as well as using viable cleaner from consultancies to research houses, Asia, further driving demand for
fuel alternatives such as hydrogen. data centre providers to academic — will digital services. Data centres are
be key in raising awareness and seizing at the heart of this growth, and
Cooling needs represent 35 to 40 per opportunities to achieve sustainable this region represents a key
cent of total data centre energy growth in the long term. market for local and multinational
demand, making energy efficient UPS data centre providers and tech
(uninterruptible power supply) systems This will also help the industry to build giants to seize opportunities to
and cooling technologies—including resilience and ensure it is prepared for feed the growing appetite for all
variants of liquid cooling—a key area other global disruptions going forward. things digital.
where data centre operators can reduce
energy usage as well as costs.
11SPOTLIGHT ON
SINGAPORE
The growing energy consumption of community recognises the central role many reasons why the country trumps
data centres — and its accompanying that data centres play and support its other well-developed data centre
carbon emissions — have gained much sustainable growth to ensure its progress markets in the region including Hong
attention locally and beyond. is not detrimental to the climate. Kong, Shanghai, Sydney and Tokyo.
According to major local telecommuni- Singapore is the most sought-after Singapore continues to be unbeatable
cations and data centre service provider market for data centre operators in the when it comes to undersea cable
Singtel, almost 7 per cent of the total Southeast Asian region. On a global connectivity, which is one of the core
energy used in the country was from scale, it is also one of the top-ranked considerations for data centres. As
data centres, significantly higher than data centre locations. According to the observed by Director, Business Develop-
the average of 1 to 2 per cent in the rest Cushman & Wakefield “Data Centre ment, Data Centre Service Operations at
of the world. Furthermore, analysts Competitiveness Index” report of ENGIE Southeast Asia, Joycelyn Longue,
estimate that by 2030, data centres will August 2019, Singapore was the third “Singapore has grown to be the data
consume as much as 12 per cent of most desirable place for operators to set centre hub in Southeast Asia”.
Singapore’s total energy demand, up data centres, behind only Iceland
highlighting the need to alleviate the and Norway, having also leapfrogged As of May 2020, Singapore boasts a
industry’s contribution to the country’s four spots and overtaken key markets comprehensive network of 24 undersea
overall carbon footprint. such as Sweden, Switzerland, Finland cables linking it to a multitude of key
and the US since the previous ranking locations worldwide. This makes it the
On the other hand, global disruptions was published in 2017. prime location to connect the region to
such as the Covid-19 pandemic have the rest of the world, and through to the
underscored the crucial role that data As of 2020, the country dominates the rest of Asia. When assessing cost versus
centres play in ensuring business Southeast Asian market, accounting for risk, Singapore is attractive due to its
continuity and economic growth. It is an estimated 60 per cent of the region’s extremely low country risk. In terms of
therefore important that the wider total data centre supply. There are geographic attributes, its low vulnerability
12Fig 1: Data Centre growth and Colocation Market Size by Region: 2024
North America EMEA
CAGR: 6.4% CAGR: 11.1%
Market Size: US$23.4 billion Market Size: US$17.2 billion
South East Asia
CAGR: 12.9%
Market Size:
US$3.5 billion
APAC
Asia Pacific including
South East Asia
CAGR: 12.2%
Market Size: US$28 billion
North America
Europe, Middle East, Africa
Source: Cushman & Wakefield,
Structure Research
to natural disasters such as earth- resilient networks and infrastructure,
quakes, volcanic eruptions and fires, making it the gateway for critical data
makes it a safer bet compared to other and premium content companies to the
markets such as Japan, with its risk of
earthquakes, or Australia, where the
Southeast Asia region”. “Singapore has
weather is unpredictable and more
extreme.
From 2014, Singapore’s journey towards
becoming a Smart Nation led to high grown to be the
growth in businesses related to IT and
Singapore’s stable, pro-business
environment is also conducive for
e-commerce, helping to cement its
position as the region’s hub for digital
data centre hub
international investment and it offers a
plethora of economic incentives and
and cloud services. It has also resulted in
Singapore being home to a highly skilled in Southeast
low corporate tax rates, a major plus for and well-trained data centre labour force,
data centre players. making it more favourable from a person-
nel and talent operations perspective.
Asia.”
Furthermore, Singapore boasts around
20 years of experience in developing According to the data centre colocation
Joycelyn Longue
data centres – the industry emerged directory Cloudscene, as of May 2020, Director, Business
back in the 2000’s when it boosted Singapore hosts 50 data centre service Development, Data
investments in its telecommunications providers at 93 data centre sites, with Centre Service
infrastructure. Longue points out that, multiple data centre players boasting Operations at
“This didn't happen by chance; it was new developments in the pipeline.
part of Singapore's Smart Nation plan to Singapore will continue to be a magnet
ENGIE Southeast Asia
be a “Digital Harbour” that looked at for data centres, and demand is expected
delivering excellent connectivity, to remain high.
13KEY CHALLENGES
Despite Singapore’s success in attracting tech
companies and hosting data centres, it faces some
key market and environmental challenges which need
to be addressed if it wants to remain competitive in
the longer term.
The challenges can be grouped into three key areas:
the country’s land constraints,
its tropical climate, and its policies.
Land constraints in than 10 times the average monthly net centres on Singapore’s limited land. One
wage of an Indonesian working in the resultant characteristic of data centres in
Singapore infocomm sector, considered a Singapore are that they are high-rise
higher-than-average occupation in the buildings of between five and seven
Singapore’s tiny land area of 724sq km country1. This adds to high initial capital storeys, a stark contrast to the expansive
means there is limited space for data expenditure required, and longer-term data centres in the US and Europe which
centres. This has resulted in increasing operating costs. occupy sizeable land space and are rarely
competition among data centre players taller than two storeys. For data centres,
vying for sites on which to build their When it comes to data centre construc- building upwards entails extra measures
large-scale operations. Land is at a premi- tion, operators have to contend with to ensure air flow and cooling.
um and, accordingly, real estate prices are zoning controls which come with neces-
amongst the highest in the world. sary but restrictive obligations. B2 zoning Industry experts also highlighted limita-
rules under the Urban Redevelopment tions when it comes to back-ups or
Due to Singapore’s relatively high Authority (URA) property guidelines, redundancy. Data centres would typically
manpower costs, data centres need to which data centres are subject to, include a secondary site, in addition to
set aside significant budgets for staff include a nuisance and health and safety the primary site, for disaster recovery
salaries, as well as outsourcing mainte- buffer of more than 50 metres, and a and business continuity planning.
nance fees and IT systems upkeep. requirement for sufficient distance
Latest figures from the Ministry of between the site and residential estates. Data centres may build one location in
Manpower show Singapore’s median the east of Singapore and one in the
gross monthly income at SG$4,563 per Such regulations, whilst necessary, add west, but the island stretches a mere
month (US$3,285) in 2019. This is more to the challenge of developing data 50km when measured from east to west.
141.2%
Coal
2.9%
0.7% Others
Petroleum Products
Figure 2: Singapore’s
Fuel Mix for Electricity
Generation: Q1 2019
95.3%
Natural Gas
Source: Energy Market Authority (EMA)
Note: numbers may not add up to the total due to rounding
Operators may consider other options, est-burning fossil fuel, but nonetheless puts Singapore at a disadvantage, and
including building their secondary site in a source of carbon emissions. As of 2019, whilst efforts are being made to procure
neighbouring Malaysia. However, this less than 1 per cent2 of the country’s renewable energy, it is clear that clean
brings about other cross-border energy came from solar power. energy cannot be relied upon as the only
challenges. Singapore’s space constraints solution to drive the sustainability of
also result in difficulties in providing The country also lacks space to build data centres.
renewable energy supply for data centres. wind turbines. Its lack of rivers means it is
In other parts of the world, the industry not able to accommodate hydropower. As stressed by Regional Sales Manager,
has made significant steps in generating As such, well-known approaches such as East Asia Japan, Schneider Electric
and using renewable energy to fuel its wind power and hydroelectricity, which Energy and Sustainability Services,
operations. are key drivers of sustainable data centre Valerie Choy, “The biggest challenge
development in other markets, cannot here [in Singapore], and for any corpo-
In April 2020, leading global data centre be readily applied to Singapore. The rate buyer who is serious about hitting
provider, Digital Realty, broke new ground government has suggested that the their commitments, is being able to get
when it signed a seven-and-a-half- year dominance of natural gas is also unlikely [renewable energy] at the scale and the
credit agreement with Citi to procure to change in the future. price that is required.
energy from a wind project in Texas to
power a portion of its 13 data centres in Experts interviewed observed that while In the future it is going to be a challenge
Dallas, US. the industry is aware of the technologies because we are very limited in
needed to generate renewable energy, Singapore by space to have renewables
In Singapore, 95 per cent of its energy is the environmental constraint is very capacity to satisfy the demand by all
generated from natural gas – the clean- real. The lack of clean energy sources these data centre customers.”
15Southeast Asia’s tropical for the equipment to be stored at an energy usage which does not even go
towards the running of core data centre
climate - a thorn in the ambient temperature of between 22 to
24 degrees Celsius and 45 to 55 per cent facilities. This, alongside other energy
region’s data centre relative humidity (RH). inefficiencies, has meant that the Power
energy efficiency Usage Effectiveness (PUE) ratio — the
Singapore’s average temperature and international measurement used to
A key characteristic of the Southeast relative humidity is much higher, reflect the total power supplied to the
Asian region is its hot tropical climate averaging 24 to 32 degrees Celsius, and data centre versus the amount of power
and high humidity, which present a 70 to 80 per cent respectively. This has consumed by the core IT equipment —
far-from-ideal environment for data led to a huge reliance on air cooling is generally between 1.5-1.6 in Singa-
centre operations. Servers and IT compared to other regions. Industry pore. This ratio is above 1.0, which
equipment which are housed in data experts share that between 35 to 40 per presents a perfect score.
centres typically need to function within cent of total energy usage goes towards
specific recommended temperature cooling a typical data centre in Although this has improved significantly
and humidity ranges, otherwise they are Southeast Asia, whilst the global from 5 to 6 years ago when the PUE was
prone to degradation and are at higher average is 30 to 35 per cent. While many between 1.8 to 2.0, it is still a far cry from
risk of breaking down. countries are increasingly deploying the PUE levels achieved in other
“free” or natural cooling by using markets like the US and Europe, which
The global industry consensus on outside air to cool data centres, this is can be as low as 1.1 to1.2. Key opinion
optimum conditions for the longest something which Singapore and the rest leaders share that in the region,
equipment lifespan, which uses of Southeast Asia has so far rarely done. temperature and humidity are arguably
recommendations from the American some of the biggest challenges to
Society of Heating, Refrigerating and The heavy use of air conditioners means improving the operational efficiency of
Air-Conditioning Engineers (ASHRAE), is higher carbon emissions, as well as data centres.
16Data centre service their proposed factory design assessed carbon tax on facilities which emit
rigorously using a specific methodology, 25,000 or more tonnes of greenhouse
providers feel the heat and then approved for energy efficiency gases annually. The rate is set at SG$5
from local policies by the National Environment Agency (US$3.6) per tonne of GHG emissions
(NEA)3. They will need to regularly moni- (tCO2e) and fixed until 2023, although
Tackling climate change is high on the tor and report energy performance of by 2030, it could rise to SG$10-15
Singapore government’s agenda – the their systems which account for (US$7.20 to 10.79) per tonne. In a 2018
island may be at low risk of natural four-fifths of their facility’s total energy speech, Finance Minister Heng Swee
hazards such as earthquakes and hurri- consumption. Existing data centre facili- Keat announced that the government
ties must also now appoint an energy expects to raise SG$1 billion over five
canes but it is increasingly vulnerable to
manager, and report energy use and years from this tax, which will in turn be
the rise in sea levels, as well as rising
GHG emissions on an annual basis, and used to fund the Productivity Grant and
average temperatures and erratic
follow strict reporting guidelines. They Energy Efficiency Fund, both which
rainfall. One of the government’s key
are also required to submit an energy support measures to help businesses in
long-term goals is to improve energy
efficiency improvement plan to be adopting low-carbon technologies and
efficiency and sustainability of business
reviewed annually. solutions.
practices. It ratified the Paris Climate
Agreement in 2016 and pledged to
While the intention is to ensure data While the initiative is strategically
reduce carbon emissions by 36 per cent
centres run sustainably, any potential important for climate action, the rate is
by 2030 from 2005 levels, as well as
data centre development is currently very low compared to other markets –
stabilise emissions with the aim of peak-
dictated heavily by this legislation, and the highest carbon tax in the world is in
ing around 2030.
some experts say the government Sweden at SEK 1,180 (US$123) per
would benefit from easing its policies to tonne of fossil CO2 emitted. As such, the
The Energy Conservation Act (ECA)
safeguard its competitive edge within tax is expected to have minimal impact
mandates energy efficiency requirements
the region. on lowering carbon emissions.
and energy management practices to
promote energy conservation, improve
Carbon taxes need to be raised signifi-
energy efficiency and reduce environ- Carbon tax is neither cantly to serve as a more effective tool in
mental impact. First introduced in 2012,
it was revised multiple times, most
here nor there mitigating carbon emissions and
promoting the industry’s sustainable
notably in 2017 when a clause containing Another challenge is Singapore’s intro- growth. Industry players which place a
a set of strict Energy Management duction of a carbon tax, which although priority on sustainable growth in the
Practices were introduced to oversee is a step in the right direction, is insuffi- region will need to support this move.
the development of data centres cient to drive a significant shift towards
(Subdivision 3, clause 26A – 31). reduced carbon emissions. As seen in countries such as Sweden,
high carbon taxes can help reduce the
Data centres wanting to build new facili- In January 2019, the country became carbon impact of industries and achieve
ties or expand operations need to have the first in Southeast Asia to impose a sustainable economic growth.
17Fig 3: Annual mean temperature in Singapore, 1948 - 2019
29.0
Strong El Niño
28.5
Annual Average Temparature (deg C)
28.0
27.5
27.0
26.5
26.0
25.5
1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
Year
Source: Meteorological Service Singapore
Moratorium may lead to development, even those which may tunities. Data centres are also looking to
offer a high level of energy efficiency. increase their footprint within local
investors looking markets so they are physically closer to
elsewhere As seen in other markets such as the their customers and can serve them
Netherlands, applying a moratorium better through reduced latency.
long-term has proven to be disadvanta-
In 2019, the Singapore government geous in the long run, as data centre Closer physical proximity is also under-
imposed a moratorium on new data providers will be driven to search for stood to be more beneficial to the
centres due to concerns over the indus- alternative locations in the region. With environment as it also lowers the
try’s carbon footprint. According to the other markets such as Indonesia and carbon footprint of a data centre.
news site Data Centre Dynamics, the Malaysia investing heavily in improving
moratorium could last until 20214. This their infrastructure and welcoming data As pointed out by International Business
move is understood to buy time for the centre service providers, Singapore may Development director for RED (A trading
government to reassess the market, as lose out in the data centre race. brand of Engie Impact), Simon Young,
well as allow the industry to come up “The location of DCs can have a funda-
with new and more energy efficient With the above in mind, Singapore mental effect on their carbon footprint.
power solutions. remains competitive but ongoing For example: locating DCs as close [as
challenges, combined with significant possible] to their primary source of
While the completion of several projects developments in other markets, means power cuts down transmission losses
already underway will ensure strong there is increasing spill-over in invest- which can be up to 30 per cent in some
supply of data centres in the short term, ments region-wide. In other parts of networks around the world. When this is
experts estimate that by late 2021 and Southeast Asia, rapidly emerging IT applied to a 100MW DC you are in effect
beyond, the moratorium will cause a infrastructure, a fast-growing and saving 30MW before you have started
slowdown in supply, potentially affect- potentially huge consumer base of your DC design.” The anticipated expan-
ing Singapore’s attractiveness as a data digital-savvy users, and more abundant sion of data centre operations at a more
centre hub for the region. The moratorium land will drive investors to look beyond local level will drive growth throughout
prevents any potential data centre Singapore to identify investment oppor- the region sustainably.
18Figure 4: Singapore's Energy Efficiency Fund
Up to 50% or capped at
Up to 50% for investing in Energy
Energy SG$200,000 for carrying out
energy efficient equipment Efficient
Assessment detailed energy audits in
or technologies Technologies
existing facilities
ENERGY
EFFICIENCY
FUND Up to 50% or capped at
Energy
SG$600,000 for conducting
Up to 50%* for Management Resource
design workshops for new
implementing an EMIS Information Efficient Design
facilities and major
System
expansions
Source: National Environment Agency
*capped at SG$250,000 for energy-intensive facilities
(annual energy consumption) and SG$125,000 for other companies
BCA-IMDA Green Mark additional budget to obtain the Green
Mark may play a role in deciding which
Government incen- could be even greener of the four tiers the building designers
tives are beneficial decide to adhere to. If costs are prohib-
itive, designers may opt to achieve the
but more are needed The government has taken steps to lowest Green Mark rating.
enforce the greening of data centres
through two mandatory accreditation To encourage companies to obtain a
To foster greater sustainability and
schemes — the SS564:2013 and higher tier Green Mark rating, the
energy efficient business practices,
BCA-IMDA Green Mark scheme, which government could introduce additional
some incentives and financial
advocate “green high-rise” data centres. incentive schemes to reward players
support are available in Singapore.
Such certifications work well in helping which achieve the highest accreditation.
These include the Energy Efficiency
to achieve greater sustainability
Fund (E2F), established in 2017,
which supports efforts of businesses amongst new data centre ventures This would incentivise businesses which
with industrial facilities to improve setting up in Singapore. are already facing high costs. Some data
energy efficiency (EE). centres that do not place a priority on
Furthermore, users searching for data greening may also be incentivised to do
However, key opinion leaders, centre service providers which are so. It will also put greener equipment
particularly in research and aligned with their own sustainability makers and innovators of cleaner
academia, stress that much more goals will be able to leverage the Green technology in a stronger and more
support is needed in this region than Mark to assess how green the data attractive position, as data centres will
is currently available, to encourage centre is. In 2018, the BCA launched an prioritise these players over those which
interest and relevant innovations for additional data centre accreditation – are less efficient.
sustainable data centre solutions. the Super Low Energy (SLE) data centre,
Greater investments in research and to encourage even greater energy Those players who are not providing
test bedding of solutions would efficiency levels. sustainable solutions will be squeezed
send a strong signal of the govern- out. It will also benefit data centre
ment’s determination to support However, as with all industries, and clients, who are increasingly placing
sustainable data centre growth for particularly with data centres which sustainable business practices as part of
the long term. have very high investment costs, an their corporate goals.
19VIABLE SOLUTIONS TO
SUSTAINABLE GROWTH
Singapore needs to address challenges within its already well-es-
tablished industry which includes nudging along players who are
resistant to change.
So far, several positive developments are emerging in Singapore
which support sustainable data centre growth. However, more can
be done, particularly around cooling technologies and new innova-
tions such as Artificial Intelligence (AI).
Maximising efforts for the Housing and Development Board solar energy installation on Singtel’s
(HDB) and the Economic Development Bedok Data Centre rooftop, which
Singapore’s limited Board (EDB), the number of solar photo- contributes to 10 per cent of the
renewable energy voltaic (PV) systems across the country company’s total data centre energy
has continued to grow, rising from 2 needs. Data centre operators can
megawatt peak (2MWp) in 2009 to over support the governments’ ambitions by
Despite the country’s limitations in 350 MWp in 2020. In October 2017, the collaborating closely with building
producing its own renewable energy, government also invested SG$6.2 designers to maximise the surface area of
Singapore still plans on increasing its solar million (US$4.57 million) to fund their buildings to deploy solar energy as
power deployment, setting ambitious research on solar energy output and much as possible, as well as procuring
targets in both domestic production and support its target to expand solar from local solar developers. With the
commercially, through importing from energy capacity to 2 gigawatt peak increasing number of options to procure
overseas. Whilst this may still not be (GWp) by 2030 - the equivalent of 4 per solar energy over the next several years,
sufficient to meet enough of the country’s cent of the country’s electricity demand. solar could become a solution to part of
energy demand, these efforts reflect the the data centre industry’s energy needs.
interest in environmental sustainability, High profile projects currently
and will still go towards reducing the underway or already completed include Global tech giants have been the most
country’s overall carbon footprint. the SolarLand (installation of solar active in deploying solar power and have
panels on vacant land) and SolarRoof achieved 100 per cent renewable energy
Under the government’s “SolarNova” (installation of solar panels on rooftops) for their data centre operations, or close
programme, an initiative jointly run by projects by JTC Corp, and a 1.65 MWp to it. Their accomplishments in Singapore
20are driven by their global corporate farm at Tengeh Reservoir near Tuas, the already widely deployed in several
sustainability targets, which prioritise the largest and highest profile project, which European countries such as
use of renewables globally. Apple and is expected to be completed by 2021. Switzerland, Germany and the
Microsoft run their data centre Also expected to revolutionise Singa- Netherlands is also on the cards.
operations purely on solar power, with pore’s solar energy is an even larger
both players procuring it from local floating solar panel system along the The March 2020 Updated Solar Photo-
developer Sunseap Group. Facebook’s Straits of Johor, near the Woodlands voltaic Roadmap for Singapore report
upcoming data centre at Tanjong Kling Waterfront Park, designed and by SERIS also identified two local
will also be powered by solar energy, via constructed by local sustainable energy islands, Jurong Island and Pulau
major solar energy player, Sembcorp. provider, Sunseap Group. At 5 ha, it is Semakau as potential locations to
expected to be one of the world’s largest expand solar energy capacity. With such
floating solar panel systems, generating research underway, a handful of options
Getting creative with 6,388 MW annually. in solar energy is expected to become
available to data centres in the mid-to
new solar panel surfaces Besides leveraging water surfaces, other long-term future, boosting efforts on
areas around Singapore’s city are also clean energy usage.
While the bulk of solar panel deploy-
being assessed, and are being funded
ment for data centres in Singapore is on for feasibility by research consortiums, On a potentially larger scale is the
rooftops and some vertical surfaces of Solar Energy Research Institute of opportunity for Singapore to import
buildings, there are also pockets of Singapore (SERIS) NUS and the Energy solar electricity from Australia. The Sun
supply emerging in other locations, Research Institute @ Nanyang Techno- Cable project by Sun Cable Pte Ltd,
including on water surfaces such as logical University (ERI@N). Other linking a giant solar farm in Australia to
reservoirs and offshore. existing land areas, such as over-build- Singapore via a 3,800km subsea cable is
ing PV systems above flood canals, being planned and targeted to be
Data centres would benefit from highways and other “hard surfaces” like commercially operational by 2027.
procuring solar energy from these un-shaded parking lots are amongst the
locations as part of their sustainability considerations to install solar power. If successful, the project could reportedly
goals. Singapore’s 17 reservoirs collect supply 20 per cent of Singapore’s nation-
and store rainwater and have begun Mobile PV systems which can be set up al energy needs. Data centres such as
hosting solar installations. As of 2020, easily and then dismantled and relocated Singtel have already indicated an interest
“floating” solar panel systems at Bedok at no significant cost in case the land is in tapping solar energy from Australia.
Reservoir and Lower Seletar Reservoir needed for other uses, are also being More players are expected to be keen on
are being built. In February 2020, Semb- studied as a viable solution to generate this option, underpinning its potential to
corp was successfully appointed to solar energy. Installing PV systems on be a viable option in helping Singapore
design and construct a 60MWp solar noise barriers, an exercise which is become a green data centre hub.
21Figure 5: Installed Capacity of Grid-Connected Solar Photovoltaic (PV) Systems by User Type, 2014 - 2019
MWp 2014 2015 2016 2017 2018 2019
Residential 2.0 3.6 5.2 6.9 9.3 12.1
Non-Residential 30.9 55.7 120.3 146.2 198.9 337.2
Public Service Agencies 3.1 4.0 5.3 6.6 10.0 18.8
Town Councils & Grassroots Units 9.5 15.1 57.0 62.4 82.8 131.7
Private Sector 18.3 36.7 58.0 77.2 106.1 186.7
TOTAL 32.9 59.3 125.5 153.1 208.2 349.3
Source: Singapore Power PowerGrid Ltd (SPPG)
Hydrogen presents utilise hydrogen as a low-carbon energy New technologies will
source.
huge potential drive Southeast Asia’s
They will work to develop a business sustainable data centre
case for the feasibility of importing and
Hydrogen is expected to emerge rapidly using hydrogen in Singapore. It is also growth
in the next few years and could become supported by the National Research
a viable alternative fuel option for Foundation (NRF) and the Maritime and With renewable energy sources still
sustainable data centre development in Port Authority of Singapore, signalling accounting for a small share of South-
Southeast Asia. Engie Impact, a leading huge interest and intent in this area. east Asia’s energy mix, finding ways to
energy company which specialises in improve energy efficiency in other areas
low carbon data centre solutions, is one In April 2020, local data centre player will be key to reducing the carbon
of the players exploring the potential of Keppel also signed an MoU with Dutch footprint of data centres in the immedi-
hydrogen as a sustainable fuel source, player, Royal Vopak, to study the ate term. Three ways of doing so in
particularly as backup power for data commercial viability of hydrogen in data Southeast Asia are:
centres. centres. It is understood that both
hydrogen and LNG will be the fuel 1. Deploying better technologies to
Director, Business Development Data generators for Keppel’s latest venture, improve cooling – data centres’ biggest
Centre Service Operations at ENGIE its Floating Data Centre Park (FDCP)6. energy guzzler.
Southeast Asia, Joycelyn Longue, 2. Improving the energy use of facilities
explains: “Addressing the exponential Efforts by both the government and and IT systems.
energy consumption problem in data major local players means hydrogen will 3. Adopting new technologies which
centres, hydrogen and fuel cell technol- most likely become available for data allow for more energy efficient cooling
ogies have the potential in meeting the centres to incorporate as part of such as liquid cooling, and adopting
energy reliability and sustainability sustainable solutions. Currently, the “smart” approaches and AI to identify
power needs of data centres. Fuel cells availability of hydrogen is limited, as the where energy can be reduced.
can be used to support critical loads for infrastructure is still lacking.
their ability to generate high quality and
reliable power.” A distribution network in Singapore and Cooling needs to be more
the rest of Southeast Asia needs to be
Considering the high energy needs set up to fully support the import, efficient
required by Uninterrupted Power storage and supply of hydrogen. Hydro-
Supply (UPS) in data centres, hydrogen gen pipelines need to be established Between 35 to 40 per cent of total energy
can reduce costs significantly, as well as and agreements to procure hydrogen consumed by data centres in Southeast
offer a cleaner fuel source than natural need to be developed for this to become Asia does not go towards the running of
gas. In March 2020, five local businesses, a viable option for large-scale use. the servers and IT equipment. Rather, it is
PSA Corp, Jurong Port, City Gas, Semb- used to run energy-intensive cooling
corp Industries and Singapore LNG However, industry experts agree that this equipment that maintain the controlled
Corp, together with Japanese compa- is one of the promising ways in which to environment of the servers and IT
nies, Chiyoda Corp and Mitsubishi Corp, lower the carbon emissions of data facilities. This energy wastage is not
signed an MoU5 to develop ways to centres and reliance on the national grid. viable if the industry wants to achieve
22Fig 6: Singapore’s Push for Solar Power
1MWp
amount of energy generated
1.5MWp
amount of energy generated
1.3kt CO2
amount of carbon savings,
from floating solar PV at from floating solar PV at equivalent to taking 270 cars
Lower Seletar Reservoir Bedok Reservoir off the road annually
Lower Seletar
Reservoir
Upper Peirce
Reservoir
Bedok
Waterworks
Choa Chu Kang WaterHub
Waterworks Changi Water
Reclamation Plant
Tengeh
Reservoir
Tuas Marina Bedok
Desalination Barrage Reservoir
Plant
Deployed Upcoming Studies ongoing
Source: Public Utilities Board (PUB)
sustainable growth in the long term. cooling, a highly inefficient system. conditioning, as it leverages Singa-
Results from a jointly-led survey by Some initiatives have emerged to make pore’s naturally sunny climate, result-
Eco-Business and Digital Realty7 for this existing processes more efficient, such ing in a reduced need for energy and a
report indicate that among those as the 2020 joint project between the lower amount of dissipated heat into
respondents involved in supplying and Faculty of Engineering at the National the environment.
building data centres for their company, University of Singapore (NUS) and local
58 per cent considered cooling infrastruc- specialist of solar thermal hybrid air These systems are expected to reduce
ture and technology to be important in conditioning, Ecoline Solar, which utility bills by 30 to 55 per cent, and have
making data centres more energy produced the “hybrid solar-thermal air been well-received in the local market.
efficient. Only when data centres can conditioner”8 using “thermal hybrid air They have been installed in several
reduce the amount of energy used for technology” – a process which makes commercial and residential buildings,
cooling will we see more sizeable reduc- use of solar as an energy source to including the NCS (National Computer
tions in carbon emissions and costs. power the cooling refrigerant in the air Systems), Starhub and Singtel buildings,
conditioner. Although the process still as well as at vertical farms, condomini-
Over 95 per cent of data centres in partially uses air cooling, the system is ums and hotels.
Southeast Asia still use air-based an improvement from standard air
23“Addressing the exponential energy consumption
problem in data centres hydrogen and fuel cell
technologies have the potential in meeting the
energy reliability and sustainability power needs
of data centres. Fuel cells can be used to support
critical loads for their ability to generate high
quality and reliable power.”
Joycelyn Longue
Director, Business Development, Data Centre Service
Operations at ENGIE Southeast Asia
water usage by up to 50 per cent. Perfor- to tropical climates. Facebook’s
Liquid cooling – the best mance- wise, liquid cooling is also Tanjong Kling data centre, slated to
option to achieve sizeable highly effective at cooling intense heat open in 2022, is also expected to deploy
loads, making it more suited to the indirect evaporative cooling via State-
energy reduction increasingly large volumes of data being Point Liquid Cooling Technology (SPLC)
generated from the rapid growth in through its partnership with US-based
One of the most talked about develop- data-driven technologies such as AI, Nortek Air Solutions.
ments for the future will be the advance- machine learning, IoT and 5G. It will be
ment and incorporation of liquid necessary for players to modernise their As of May 2020, SPLC is recognised as
cooling in data centres. Liquid cooling cooling processes with liquid cooling to the most sustainable data centre
technology is already widely used in keep up with the ongoing wave of digital cooling technology globally, as it can
high- performance, energy-intensive developments. reduce liquid cooling’s water and power
sectors such as computing and gaming, consumption by up to 50 per cent and
and is long considered the preferred 2019 and 2020 witnessed some players 20 per cent respectively, translating into
solution to effectively cool down heat-in- taking liquid cooling technology serious- both the lowest and most efficient
tensive CPUs and SSDs. ly and integrating them into their newest Water Usage Effectiveness (WUE) and
projects. Energy and automation digital Power Usage Effectiveness (PUE) of all
Liquid cooling has numerous advantages solutions company Schneider Electric indirect evaporative cooling methods.
over air-based cooling, most notably refreshed a research project it had More players may follow suit, but the
since liquid conducts heat better than started earlier with cooling technology adoption is expected to be slower than
air. Liquid cooling, if placed at heat-in- specialist, Iceotope, and technology what is needed.
tensive spots, can rapidly reduce company Avnet in late 2019.
temperature in a targeted manner, Industry players need to make the
requiring less energy to do so than air Digital Realty’s third data centre in switch faster and consider the benefits,
while generating less noise. It also uses Singapore at Digital Loyang II (SIN12), both in terms of costs and environment,
less water. Industry experts observe set to open in Q1 2021, is understood to that liquid cooling can bring to their
that liquid cooling can reduce power feature indirect evaporative cooling, a data centre operations. Once set up, it is
consumption by 20 to 30 per cent, and form of liquid cooling that is well-suited easier to maintain than air cooling. If
24sealed properly, liquid cooling systems The system uses a two-pronged will continue to be, Singapore’s go-to
remain self-contained and shielded approach, where components with high energy source. Close to 30 per cent of it
from outdoor hazards such as dust, heat heat dissipation are cooled using liquid is acquired in liquified form and brought
and air pollution, which air-cooling cooling, whilst components emitting in via the country’s 6 million tonne-per-
systems are exposed to. less heat are air-cooled. This eliminates annum capacity LNG terminal on
the need for a cooled water supply via a Jurong Island, before being distributed
The main challenge in adoption is chiller, as well as computer room air to users.
expected to lie with existing and older conditioning (CRAC) – two of the biggest
data centres. Players reluctant to invest sources of energy consumption in data In late 2019, a research team at NUS
in liquid cooling cite high upfront costs, centres – subsequently reducing overall Engineering, together with local data
complications and time involved to energy use. The system is flexible
centre player Keppel and Singapore
redesign and potentially overhaul data enough to be incorporated into existing
LNG Corporation (SLNG) joined forces to
centre infrastructure. Joshua Au, Head, building infrastructure, making it highly
develop a cooling medium which would
Data Centres, IT Shared Services (ITSS), attractive for existing data centres.
at Agency for Science, Technology and make use of the cold energy from the
Research (A*STAR), a statutory board In summary, data centres in Southeast LNG regasification terminals10. The
under the Ministry of Trade and Industry, Asia must rethink their cooling systems. process would involve transporting cold
states, “The customers have to agree to If they are to keep up with cooling needs energy from the terminal into the data
use the likes of liquid cooling - if custom- in an energy efficient manner, operators centres, to be circulated within the
ers don't agree, it's not going to happen.” must be receptive to some form of liquid cooling loop in each data centre. The
cooling. If air cooling is replaced by technology, “Semiclathrate Thermal
Data centre players that do not embrace liquid cooling on a large scale, it will Energy Carrier System” (ScTECS), could
more efficient cooling technologies face bring down PUE, but also Water Usage improve data centres’ PUE by 20 per
greater cost and operational problems Efficiency (WUE) and overall energy cent and reduce the space needed for
in the longer term. Industry experts efficiency and costs. Data centres will be cooling infrastructure. Such a milestone
have highlighted that given the rate of in a stronger position to drive ongoing would represent a breakthrough in
growth in data usage and the newest growth in power densities that will enhancing the industry’s environmental
digital technology, air-based cooling come with the new generation servers. impact, particularly as it draws energy
will not be sufficient to serve the needs from an existing energy source.
of data centres due to the growing Furthermore, with a second LNG
power density demand from servers in Singapore is leveraging terminal anticipated in Singapore, the
the long term. At the minimum, older technology could be replicated and help
data centres could consider solutions its LNG domestic to cool more data centres.
which do not require a complete distribution network
infrastructure overhaul, but that can be
A prototype is expected to be available
integrated with or added to existing
Liquified natural gas (LNG) could by 2022, and if the technology comes
infrastructure. One such solution is the
chiller- less hybrid cooling solution by represent another viable way of cooling into fruition, could help reduce the
local player, CoolestDC9, which during data centres, especially in Singapore. If energy demand of data centres in
testing, managed to achieve a partial made available on a wider scale, it could Singapore. Both existing and new data
power usage effectiveness (pPUE) score be another game changer in the centres in the region could potentially
of 1.2, with the potential of dropping to sustainable growth of data centres tap into this efficient cooling method.
1.1 (with the ideal score being 1). across the region. Natural gas is, and
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