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Singapore: Pilot call for application to build “green” data centres

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Three permits will be approved during this pilot phase, expected to launch by the second quarter of 2022

In brief

The Infocomm Media Development Authority (IMDA) and the Economic Development Board (EDB) will pilot a Call for Application to construct three new data centres, after lifting a moratorium on new data centre projects in place since 2019. In line with Singapore’s climate change commitments, permits will only be granted for proposed data centres that meet a stringent set of energy efficiency criteria.

Recommended action

As the application period draws near, data centre developers and service providers should monitor the evaluation criteria and plan their application strategies accordingly to meet these criteria.

In more detail

Introduction

A moratorium on new data centre developments in Singapore was imposed in 2019 as the Singapore government reviewed ways to manage the growth of data centres in a sustainable manner, consistent with its climate change commitments.

In the second quarter of 2022, the IMDA and the EDB are expected to launch a pilot Call for Application to build data centres that possess “best-in-class techniques, technologies and practices for energy efficiency and decarbonisation”.

Criteria

A maximum of three applications will be approved during this pilot phase. Only applications that meet the following proposed criteria will be considered:

  • Have a data centre capacity that is between 10 megawatt (MW) and 30 MW;
  • Have a power usage effectiveness (PUE) ratio of 1.3 or lower, and include innovation and sustainability solutions; and
  • Obtain a Platinum rating under the Green Mark Scheme for New Data Centres established by the IMDA and the Building and Construction Authority (BCA).

However, the above evaluating criteria remain tentative. The government will provide clearer guidelines on how applications will be evaluated in due course. Several land parcels have been set aside for data centre construction by government agencies such as JTC Corporation, but applications to develop other sites will also be considered.

Applicants that incorporate innovative sustainability solutions into their operations and have a record in building and operating data centres in Singapore will be considered favourably.

Conclusion

The results of the application process are expected to be announced during the fourth quarter of 2022.

The government will continue to evaluate its policies towards data centres in the next 12 to 18 months after this initial pilot phase.

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Andy Leck is the managing principal of Baker McKenzie.Wong & Leow. Mr. Leck is recognised by the world’s leading industry and legal publications as a leader in his field. Asian Legal Business notes that he “always gives good, quick advice, [is] client-focused and has strong technical knowledge for his areas of practice”. Alongside his current role as managing principal, Mr. Leck has held several leadership positions in the Firm and externally as a leading IP practitioner. He currently serves on the International Trademark Association's Board of Directors and is a member of the Singapore Copyright Tribunal.

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Ken Chia is a member of the Firm’s IP Tech, International Commercial & Trade and Competition Practice Groups. He is regularly ranked as a leading TMT and competition lawyer by top legal directories, including Chambers Asia Pacific and Legal 500 Asia Pacific. Ken is an IAPP Certified International Privacy Professional (FIP, CIPP(A), CIPT, CIPM) and a fellow of the Chartered Institute of Arbitrators and the Singapore Institute of Arbitrators.

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Ren Jun is an associate principal of Baker & McKenzie.Wong & Leow. Ren Jun extensively represents local and international intellectual property-intensive clients in both contentious and non-contentious IP matters, such as anti-counterfeiting; civil and criminal litigation; commercial issues; regulatory clearance; and advertising laws. Ren Jun also advises on a wide range of issues relating to the healthcare industries. These include regulatory compliance in respect of drugs, medical devices, clinical trials, health supplements and cosmetics; product liability and recall; and anti-corruption. Ren Jun is currently a member of the Firm's Asia Pacific Healthcare ASEAN Economic Community; Product Liability and Regulatory Sub-Committees.

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Arwen is a local principal in the Firm's Intellectual Property and Technology (IPTech) Practice Group in Singapore. She is a member of the Law Society of Scotland, and has been admitted to practice in Scotland since 2004. Arwen worked as an intellectual property and technology lawyer in the UK and Europe before relocating to Asia in 2014 and has since worked in both Singapore and Hong Kong, advising on matters across both Asia Pacific and Europe. Arwen is recognised in Legal 500 (2020) as "commercial, pragmatic and personable" for the TMT sector.

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Abe is a principal in our Singapore office. His main areas of practice include patents, trade secrets, copyright, and transactional IP for international and domestic clients. With over eleven years of legal experience as a lawyer and over ten years of technical experience as an engineer in the US and Canada, Abe is able to provide commercially oriented legal and technology-specific advice on a wide range of IP issues. Before joining our Singapore office in 2016, Abe was a lawyer in our Baker McKenzie offices in the US (where he passed the US patent bar examination and qualified as a US Registered Patent Attorney (limited recognition)) and Thailand.

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