Data centre operators seek adequate time to meet green targets under proposed Bill

: Get ST's newsletters delivered to your inbox Providing adequate time for the transition was among several issues raised during a public consultation on the draft Digital Infrastructure Bill from July 1 to 22. PHOTO: ST FILE Lee Li Ying Updated Sep 08, 2026, PM Set as preferred source Listen Summarise Data centre operators in Singapore seek sufficient time to comply with new energy-efficiency rules under the upcoming Digital Infrastructure Bill. The Bill introduces two licensing regimes focusing on energy efficiency and security for data centres using over 3MW power and large cloud providers. Authorities plan to streamline reporting and licensing processes. AI generated live coverage here. SINGAPORE - Data centre operators have asked for sufficient time to meet new energy-efficiency requirements under proposed new laws to ensure that critical digital infrastructure remains sustainable and resilient. Providing adequate time for the transition was among several issues raised during a public consultation on the draft Digital Infrastructure Bill from July 1 to 22, which drew 25 responses from data centre operators, cloud service providers and industry associations. Overall, respondents supported the new Bill, which they said was important given the role of digital infrastructure in supporting Singapore’s digital way of life. Data centre capacity increase must also come sustainably to conserve Singapore’s scarce natural resources. The new legislation was tabled in Parliament on Sept 8. If passed, major data centre operators and cloud service providers would have to obtain a license to operate by mid-2027. They would also need to meet power efficiency, incident reporting and security requirements, which will be finalised from next year and updated as technology evolves. Licenced data centre and cloud service operators could be fined up to $1 million, or up to 10 per cent of their annual turnover in Singapore, whichever is higher, if they fail to meet cybersecurity, business continuity and incident reporting requirements under the proposed new legislation. The move comes as Singapore is increasingly digitalised, and services offered e-commerce. At the same time, demand for data centre capacity is growing with the push to adopt artificial intelligence. In a closing note on the public consultation, the Ministry of Digital Development and Information (MDDI) and Infocomm Media Development Authority (IMDA) said that resource-constrained Singapore needs to grow its compute and data centre capacity in a disciplined manner as such facilities are intensive users of land, power and water. “Scarce resources must be managed carefully as compute demand grows, so that we make the best use of the resources we have to build the infrastructure Singapore needs, while improving resource efficiency and ensuring that scarce resources generate lasting value,” said MDDI and IMDA.