Singapore data centers look to Malaysia, Indonesia to satisfy demand

Less space, more environment issues push operators into neighbor nations

Singapore-based Princeton Digital Group is building new data centers in Malaysia and Indonesia. (Image courtesy of PDG)

TSUBASA SURUGA, Nikkei staff writer

August 31, 2023 10:29 JST

SINGAPORE -- Data center operators in Singapore are increasingly exploring alternative locations like Malaysia and Indonesia, as the city-state limits construction of new facilities due to space constraints and environmental concerns.

Princeton Digital Group (PDG) is seeking to offer more capacity for Singapore-based companies from facilities in neighboring markets. Major foreign operators are also building new data centers in the region, as demand from big tech companies remains strong with new technology like generative AI.