The next phase of artificial intelligence (AI) focuses on putting AI models to work through inference, requiring systems closer to users for minimal delays. To meet this demand, Digital Realty is investing over S$4.3 billion in new data center developments in Singapore, with a total potential investment reaching nearly S$7 billion. The company also plans to expand its local workforce to 400 by 2030.
Singapore is emerging as a leading AI hub, offering robust connectivity and a supportive regulatory environment essential for data sovereignty and trusted AI deployments. The city-state's policy landscape is evolving, with initiatives like the Model AI Governance Framework for Agentic AI guiding responsible enterprise AI use.
Growing AI adoption is prompting companies to re-evaluate their IT infrastructure. Digital Realty is addressing this by planning the launch of its Digital Realty Innovation Lab (DRIL) in Singapore in Q3 2026. This lab will provide a controlled environment for developing, testing, and running AI and hybrid cloud solutions before large-scale deployment.
Sustainability is also a focus, with Digital Realty achieving 100% renewable energy coverage for its Singapore operations. Discussions are underway with government and industry to improve efficiency and increase the use of cleaner power, potentially leading to a more distributed model while keeping Singapore central for latency-sensitive AI and cloud connectivity.