Keynote Address by SMS Tan Kiat How at the Launch of Equinix’s Data Centre SG6

Ms Adaire Fox-Martin, CEO and President, Equinix,

Mr Cyrus Adaggra, President, Asia-Pacific,

Ms Leong Yee May, Managing Director, Singapore,

Distinguished guests, ladies and gentlemen.

1. A very good afternoon.

2. Let me first congratulate Equinix on the opening of SG6.

3. You have already heard about the journey behind this facility, its capabilities, and the importance of connectivity in the AI era, so let me zoom out.

4. Because SG6 is not just another data centre. It is one node in a much larger infrastructure system taking shape across Southeast Asia. In the age of AI, that system will matter more than ever.

5. When we talk about AI infrastructure, it is tempting to focus on one number: megawatts.

6. How much compute can we build? Where will the next data centre go? Those questions matter.

7. But they are no longer enough. AI infrastructure is increasingly a systems story.

   1. Compute needs power;

   2. Power needs grids;

   3. Data centres need networks;

   4. Networks need trusted connectivity; and

   5. All of these need capital, businesses and clear rules.

8. So, the bigger question is not simply: “Where will ASEAN build more data centres?” It is: “How do we build a regional infrastructure system that connects compute, energy, networks, capital and businesses, and does so in a way that is resilient, sustainable and investable?” That is the real opportunity.

9. The scale is significant. Data centres could account for about one-fifth of ASEAN’s growth in electricity demand between 2025 and 2030. So increasingly, digital infrastructure and energy infrastructure must be planned together.

10. The good news is that ASEAN does not need every country to do everything. Different markets bring different strengths. Some have more abundant land and energy. Others have large domestic markets, industrial ecosystems or talent.

11. Singapore brings connectivity, capital, trusted institutions, a strong business ecosystem, and infrastructure suited for high-value workloads where reliability, security and proximity to enterprises matter. These are complementary strengths and this is familiar territory for Singapore.

12. In the traditional economy, we grew not because we produced everything ourselves. We succeeded because we helped connect:

    1. Goods to markets;

    2. Capital to projects;

    3. Businesses to opportunities; and

    4. Southeast Asia to the world.

13. In the digital economy, we can play a similar role. We can help connect:

    1. Compute to power;

    2. Infrastructure to capital;

    3. Businesses to cloud platforms; and

    4. ASEAN to global markets.

14. That is how I see Singapore’s contribution – not to pull every workload here in Singapore, not to compete for every megawatt, but to help make the regional system work better.

15. This is where facilities like SG6 come in. SG6 provides trusted, highly connected infrastructure for workloads that benefit from being in Singapore. It plugs into Equinix’s wider regional network and pushes the frontier on efficiency and sustainability.

16. You have heard about the technologies already. What matters to me is the principle behind them.

17. When resources are scarce, efficiency creates capacity – every improvement in cooling, every unit of energy saved, and every increase in compute density.

18. These give us more room to support useful digital activities.

19. That is why Singapore’s ambition is not maximum compute. It is maximum value from compute, and value should not be measured only in megawatts or server racks.

20. A good data centre creates value through what it enables:

    1. The businesses it connects;

    2. The high-value workloads it supports;

    3. The capabilities it anchors; and

    4. The innovation that grows around it.

21. Equinix Singapore supports customers across AI, financial services, professional services, cloud and technology.

22. An independent study commissioned by Equinix estimates that the digital activities of more than 1,000 companies supported through its Singapore platform contribute around S$45 billion to Singapore’s economy.

23. That is why the economic value of a data centre lies not only inside the building. It lies in the ecosystem around it.

24. I am also pleased that SG6 will host a Co-Innovation Facility with NUS. That facility will provide a live environment to test new approaches in cooling, energy storage, fuel cells and digital twins.

25. Regulation can set the baseline, but innovation must raise the ceiling. If solutions tested here can later be deployed across Singapore and the region, the value extends well beyond Singapore.

26. There is another lesson here. Around the world, data centres are becoming more politically salient. Communities and governments are asking legitimate questions about electricity, water, land, grid capacity and what they receive in return.

27. The problem comes when these questions are addressed only after pressures become acute. Then debates become polarised:

    1. Growth versus communities;

    2. Industry versus Government; and

    3. Investment versus sustainability.

28. Singapore has tried to avoid that false choice.

29. We started early. In 2019, we paused new data-centre capacity and reconsidered how best to grow. That led to the Data Centre Call for Application. We asked operators to compete not simply on speed or scale, but on sustainability, strategic contribution and economic value.

30. SG6 is the first facility to open under that framework.

31. Last month, Parliament passed the Digital Infrastructure Act (DIA).

32. But the regulations themselves are only part of the story. How we got here is just as important. We chose to plan early rather than regulate late. Because we started before the pressures became acute, we had the space to work closely with industry. That gave us room to develop rules that are practical, balanced and forward-looking.

33. The DIA reflects that philosophy. It strengthens security and resilience requirements for major data centres and cloud providers.

34. It establishes a common sustainability baseline across the sector. Where operators make material commitments to secure scarce capacity, those commitments should remain meaningful.

35. These rules do not hold the digital economy back. They are part of what enables it to grow.

36. A digital economy cannot scale if businesses cannot trust the infrastructure beneath it. So, resilience protects growth.

37. In a country with limited land, power and water, we cannot keep adding compute unless we use those resources more efficiently.

38. Resilience protects growth. Sustainability creates room for growth. Predictability supports investment.

39. For investments measured in decades, investors do not expect an absence of rules. They want rules that are clear, transparent, even-handed and predictable.

40. They want Government to signal direction early, to engage industry, and to apply rules consistently and fair.

41. That is how we have approached the DIA. We consulted extensively. We will recognise existing standards where possible, provide appropriate transition periods, and avoid unnecessary duplication.

42. As technology evolves, detailed requirements can evolve through continued engagement rather than abrupt policy shifts.

43. Predictability is not just about what the rules say. It is also about confidence in how the Government makes and applies them, and engages the industry in developing them.

44. For long-lived infrastructure, that matters. Certainty is itself a form of infrastructure.

45. So, I’d like to thank Equinix for its continued confidence in Singapore, and for its partnership with NUS and our government agencies that has made SG6 possible.

46. My heartiest congratulations to the Equinix team. Thank you.