IT, Datacenters and cloud computing in Singapore

IT, Datacenters and cloud computing in Singapore

IT, Datacenters and cloud computing in Singapore

Singapore which is one of the most developed IT markets in the Asia Pacific region, is rapidly emerging as a major data center with a strong hold in the cloud computing industry.

The Singapore government is actively promoting the country as a data services hub. It is predicted that in the next couple of years Singapore will surge way ahead of its peers like Taiwan, South Korean, Hong Kong and Australia in data analytics and cloud based services.

New trends and developments

  1. As the regional IT hub, Singapore is witnessing major investments from cloud computing service providers and data center operators.
  2. Singapore has overtaken Hong Kong in pulling investments. Continued support from its government has rightly leveraged the country’s geographical position, legal framework and telecommunications infrastructure to rope in investments and expertise.
  3. Regional opportunities have been instrumental in making companies like Pacnet and Digital Ocean set up new data center facilities in Singapore.
  4. With a view to attract MNCs, banks, telecoms carriers, internet and media companies to host their content and services in Singapore, the government has constructed a Data Centre Park providing huge data center space.

Singapore’s IT SWOT

If you intend to participate in the Singaporean IT, Datacentre and Cloud Computing sector, here is an analysis to help you weigh the pros and cons:


  • Strong support from the government for ICT programmes.
  • Geographical advantage with wider growth across the region.
  • IT literate population with high incomes.
  • High quality, low cost telecommunications infrastructure.


  • Unstable growth rates in the emerging markets in the region.
  • High sensitivity to volatile global economy due to its integrated economy structure.
  • Exorbitant land prices are an obstacle to Singapore becoming a major data center.


  • Singapore’s status as a developed IT market in the Asia Pacific region is very promising with strong domestic demand, a healthy economic outlook and an environment conducive to introduction of next generation services.
  • Singapore’s growing image as a regional cloud computing hub and a big data hub will continue to boost investment in IT market.
  • Flexible government policy and affordable telecommunication infrastructure will ensure growth in the cloud computing sector and business software.
  • Construction of a Data Centre Park to attract MNCs to base their data centers facilities in Singapore.


  • Growing competition from neighboring countries which are keen to attract data center investments into their country.
  • Hindrances in service adoption due to cyber security issues and regional tensions.
  • The likelihood of a slowdown in the US economy may adversely affect Singapore’s economic growth.

What the future holds

Singapore will retain its position as a regional IT hub even as it continues to lose some market share in certain areas due to lower cost solutions offered by China. Leveraging its growth in regional markets of India, Indonesia and China and driven by a government dedicated to develop its business process outsourcing capabilities , Singapore is geared up for fast paced developmental growth in the IT market.

For detailed information on specific business prospects in this sector, engaging the services of a market research agency would be beneficial.


This entry was posted in Asia on April 19, 2016 by specialist.