Singapore’s Spillover Markets
As Singapore’s data centre activity grew, it grappled with concomitant challenges such as managing carbon emission against its commitment to the Paris Agreement; seeing high electricity consumption making up approximately 7% (3.40 TWh) of Singapore’s total electricity consumption in 2020; and the potential strain on land and local infrastructure.
Located within close proximity of Singapore, Johor Bahru and Batam are ideal for organisations looking for a base close to Singapore for business services and technological development while avoiding the high costs associated with operating within the city. As Singapore’s spillover market, the trend is harmonious with Singapore Economic Development Board’s twinning model “SG+” strategy, where organisations combine the business advantages of Singapore with neighbouring cities – Johor Bahru in Malaysia, and the Batam, Bintan and Karimun (BBK) islands in Indonesia. Johor Bahru and Batam hold different advantages and disadvantages. These cities have available land to offer in contrast to space-constrained Singapore, and saw significant investment in power infrastructure to support the growth of the data centre industry. However, it is also important to note that the quality and reliability of power supply may vary depending on the location and the power infrastructure available in the area.
