Singapore Mandates New Licences for Major Data Centres
The Digital Infrastructure Bill, passed today, affects two-thirds of the nation's 70 facilities, targeting those with S$100 million revenue or 10MW capacity.
New Regulatory Framework for Digital Infrastructure
Singapore's Parliament passed the Digital Infrastructure Bill on October 7, 2026, introducing new licensing requirements for large data centres. This legislation aims to bolster energy efficiency and operational resilience for facilities critical to the nation's digital services.
The new framework establishes two licence categories: Foundational Digital Infrastructure (FDI) and Data Centre (DC) licences. The Infocomm Media Development Authority (IMDA) will oversee these new permits.
Stricter Rules for Resilience and Cybersecurity
Data centres generating over S$100 million in average annual revenue from Singaporean users or operating with at least 10 megawatts (MW) of electrical capacity will need an FDI licence. These licensees must implement processes for physical and cyber security, alongside business continuity and disaster recovery plans.
They will also notify IMDA of any prescribed cybersecurity incidents or service disruptions. Separately, amendments to the Cybersecurity Act will extend incident reporting requirements to most major data centres, similar to rules for critical information infrastructure.
Data centres using at least 3MW will require a DC licence, with specific power usage effectiveness (PUE) standards to be determined.
Broad Impact on Operators
The new regulations will apply to approximately two-thirds of Singapore's 70 data centres, according to the Bill's provisions. While authorities did not name specific companies, major cloud service providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform operate facilities in Singapore that match these thresholds.
Senior Minister of State for Digital Development and Information, Tan Kiat How, noted during parliamentary debate that disruptions in such facilities could widely affect the economy.
Shaping Singapore's Digital Economy
The legislation reflects Singapore's proactive planning amidst rising demand for computing power, particularly for artificial intelligence applications. Tan Kiat How stated that the Bill provides regulatory certainty for businesses, while allowing the government flexibility to adjust security and sustainability requirements.
Singapore currently has over 1.6 gigawatts of data centre capacity, including 200MW awarded to four operators in August 2026. This framework seeks to balance digital economy ambitions with resource constraints.
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