Tech Stories

Issue #64

Hello Reader,

If you've signed up for Clearly Tech on Substack, thank you. I'll be unpacking complex issues and framing big developments for the wider tech ecosystem. This newsletter will continue to go out every Sunday with my opinions on key issues and links to my latest stories.

This week, let's dig into how three Southeast Asian nations are charting distinctly different paths in the data centre race: Singapore, Malaysia, and Thailand.

Singapore's unwavering mandate

Without fanfare, Singapore last Friday launched a new standard for energy-efficient IT equipment, part of its drive towards sustainable data centres.

According to IMDA, the new "SS 715:2025: Energy Efficiency of Data Centre IT Equipment" standard is geared towards helping data centre users improve their energy efficiency.

I'll leave you to read about it, but broadly speaking, it focuses on encouraging organisations to deploy energy-efficient systems, deployment best practices for IT systems, and running their data halls at a higher temperature to save energy.

This comes 6 months after the latest Green Mark for Data Centre 2024 (GMDC:2024) took effect in March, imposing tighter requirements on PUE measurements and adding new considerations such as WUE, or Water Usage Efficiency, into consideration.

My point is this: Singapore has an unwavering green mandate. Despite extreme pressure to soften its stance over data centre growth, it fully believes sustainable data centres will eventually matter to everyone. And the groundwork being laid today positions Singapore to lead when sustainability shifts from differentiator to baseline requirement.

Is Singapore onto something here? Setting data centre standards today that everyone will scramble to mirror tomorrow? Or is this rigid commitment to sustainability a strategic miscalculation that will cost Singapore its hard-won position as Southeast Asia's premier data centre hub?

Bubbling anxiety in Johor

A DC operator-run water reclamation plant in Johor.

This week has been an anxious one for those with stakes in Johor's data centres. At the time of writing, there have been six quakes of varying intensity. All have registered at 4.0-magnitude or lower - noticeable with minor indoor shaking, but unlikely to cause significant damage.

Here's the thing though: Johor isn't classified as an earthquake zone. Which means that the huge data centre hub in Johor will not be built with seismic activity in mind. Given that it's too late to retrofit, the only option is to wait and see what develops.

This comes on top of recent challenges - new electricity tariffs that kicked in this July, upcoming water tariff hikes, other price increases, and regulations prohibiting data centres from using 100% potable water in their cooling operations.

Taken together, that's quite a lot to absorb. And there's before adding earthquakes to the mix. I'm hearing unhappy murmurings on the ground, and the question becomes: will these mounting pressures dampen Johor's data centre boom? Drop me a note if you have thoughts to share.

Thailand's incipient opportunity

Finally, is Thailand the next Johor? According to DC Byte, Thailand is entering a breakout phase with off-the-charts growth. Bangkok's 2,587MW of IT capacity in the pipeline now outpaces regional heavyweights, trailing only Malaysia in Southeast Asia.

Of course, 2,072MW of this pipeline consists of "early stage" builds - preliminary constructions that might never materialise. But here's the parallel: we said the same about Johor a year ago. Those "speculative" projects? Many are now under active construction or already operational.

I've watched multiple waves of data centre optimism crash against Thailand's shores over the years, which kept me sceptical as recently as late last year. But this round feels different. The momentum, the players involved, the scale of facilities - it's all pointing to something more substantial. What do you think?

As usual, you can reach me by hitting reply.

Regards,
Paul Mah.

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