PUBLISHED ONOctober 06, 2026 9:25 AMBYSean LerThe Republic's digital economy grew to $144.1 billion — 19.3 per cent of Singapore's Gross Domestic Product (GDP) in 2025. As digital services increasingly rely on data centres and cloud service providers, disruptions can have a systemic impact on the economy and society, Senior Minister of State for Digital Development and Information Tan Kiat How said on Tuesday (Oct 6).
"When it is disrupted, the impact is not confined to one digital service. Many services can be affected at once, and the impact can quickly ripple across our economy and society," the senior minister of state said at the Second Reading of the Digital Infrastructure Bill in Parliament.
Beyond security and resilience concerns, growing demand for computing power, driven largely by artificial intelligence (AI), is also placing pressure on Singapore's limited land, power and water resources, Tan noted.
Singapore therefore aims to plan ahead and make difficult trade-offs before resource constraints become more acute, creating as much room as possible for the digital economy and the country's AI ambitions while remaining within environmental limits, he said.
"We have done this by working closely with industry, progressively raising standards, testing new approaches, and allocating scarce DC capacity carefully to support our national and digital economy needs."
The senior minister of state described the Bill as "an important next step" in Singapore's efforts to address challenges relating to security, resilience and sustainability.
He pointed out the Infocomm Media and Development Authority's (IMDA) Advisory Guidelines for Cloud services and Data Centres (DCs) release in February 2025 were developed in consultation with the industry.
It draws on international and industry best practices and standards, and also build on the Multi-Tier Cloud Security Singapore Standard introduced in 2013.
On sustainability, Tan noted that Singapore has been working with the industry to develop various standards, best practices and benchmarks, including tropical DCs, IT energy efficiency, and liquid cooling over years.
Most recently, Singapore had set out its long-term plans in the Green Data Centre Roadmap released in May 2024.
But while these measures have raised standards and and improved industry practice, they are ultimately voluntary, and cannot ensure consistent outcomes across the sector, Tan highlighted.
If passed, and when it comes into force, the Digital Infrastructure Act can give IMDA the statutory tools it needs, he said.
"First, as a gatekeeper, IMDA can require the major digital infrastructure providers and commercial-scale DCs covered by the Act to be licensed and to meet a common baseline of standards.
"Second, as the sector regulator and standards-setter, IMDA can progressively update those baseline requirements as risks, technology and industry practices evolve."
Under the Bill, two new licensing regimes will be introduced to strengthen the security and resilience of major cloud services and data centres, while improving the environmental sustainability of data centre operations in Singapore.
The first regime covers major co-location DCs — where businesses share a space to hold their DCs — and cloud DCs with a critical IT load of at least 10 megawatts (MW).
Critical IT load refers to the amount of power used by a data centre's IT equipment during operations.
Major cloud service providers (CSP) that generate at least $100 million in average annual revenue from users in Singapore over the three preceding years are also included in this regime.
Under the Bill, cybersecurity requirements are expected of these DCs and CSPs, and subsequent risk management measures, business continuity and disaster recovery plans must be reported to IMDA along with any disruptions that may occur.
Next, DCs with a critical IT load of at least 3MW will be licensed and be required to meet energy-efficiency requirements.
Both new and existing DCs will need to adhere to these requirements and may further need to improve their IT equipment or water efficiency based on MDDI's consultation with the industry.
The Bill will also allow commitments made by operators when securing new data centre capacity, including green energy commitments, to be enforced as licence conditions. This reflects the fact that data centre capacity relies on scarce resources such as land and electricity.
Setting out the considerations that guided the design of the Act, Tan said that policymakers had sought to ensure proportionality — regulating on where there is a clear policy need.
Setting out the principles behind the Bill, Tan said policymakers sought to ensure proportionate regulation by intervening only where there is a clear policy need.
They also adapted international standards and global best practices to Singapore's unique circumstances, while avoiding requirements that could outpace technological developments.
Policymakers also sought to fit the Act within the wider Government framework due to the wider implications on land use, energy and resources, he added.
"We therefore want clear principles and a robust framework that can progressively adapt with technological and industry changes," the senior minister of state said.
In an earlier statement after the Bill's first reading on Sept 8, the Ministry of Digital Development and Information stated that predictable and credible rules are part of Singapore's value proposition, especially for capital-intensive digital infrastructure investments with a multi-decade lifespan.
"The Bill will give our businesses, organisations, and citizens assurance that the infrastructure they depend on is secure and resilient — and give businesses the clarity and predictability they need to invest in Singapore's digital infrastructure for the long term."
The ministry added that the Act will also ensure that Singapore's data centre sector continues to grow in a sustainable manner.
Rounding up his opening speech, Senior Minister of State Tan Kiat How said: “Our ambition is not maximum compute. It is maximum value from compute – for Singapore, our businesses and our people, and not just for now, but well into the future.”
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