Data Centre Energy Demand and New Generation Capacity, Assessment of Overseas Data Processing via Optical Fibre, and Options for Regional Network Financing

Mr Kenneth Tiong Boon Kiat asked the Minister for Digital Development and Information (a) what proportion of new generation capacity sought by the Energy Market Authority (EMA) is attributable to projected data centre demand; (b) whether processing data overseas and returning the results via optical-fibre has been assessed as an alternative and what was concluded; and (c) if so, whether a regional optical-fibre network with financing arrangements equivalent to the ASEAN Power Grid will be advanced to enable this.

Mrs Josephine Teo: The compute capacity provided by data centres in Singapore is crucial for supporting Singapore's digital economy and artificial intelligence developments. Our data connectivity to many countries, including through subsea cables running on optical fibre, enables cross-border data flows in and around the Association of Southeast Asian Nations region. This allows companies to tap on compute capacity beyond Singapore.

To support Singapore's growth, the Energy Market Authority (EMA) plans for sufficient generation capacity to meet Singapore's overall projected electricity demand. 1 From 2025 to 2032, Singapore's peak electricity demand is projected to grow from 8.2 gigawatt up to 11.9 gigawatt. This accounts for growth in energy-intensive sectors, such as semi-conductors and data centres.

Note(s) to Question No(s) 34:

1 EMA’s latest Request for Proposal called for up to two new Combined Cycle Gas Turbine (CCGT) generating units in 2032 to meet projected electricity demand growth.