4 Reasons Why Singapore is Leading APAC’s Cloud, Digitalization and Global HQ Revolution

As Digital Growth Soars, Singapore Is the New Home of BDx’s New Headquarters Amid a Soaring Data Center Market and MNC HQ Shift

Singapore continues to dominate as a global leader in technology and digitalization. As cloud adoption increases at a rapid pace and investments in new technologies soar, Singapore is experiencing explosive tech growth, bolstering its commitment to digitalization and further securing its status as a “Smart Nation.”

The impact of this growth has spurred multinational and regional companies to establish headquarters here. This influx of HQs is fueling economic development while driving the critical need for best-in-class data centers to support them and their future growth.

So, why is this small city-state in Southeast Asia leading the pack in digitalization, cloud adoption, MNC headquarters and world-class data centers? Let’s take a closer look.

1. Singapore Is the Smartest City In the World

Singapore’s Smart Nation initiative is propelling its vision for a “digital-first” culture, where digital and smart technologies are fully integrated into all aspects of daily life with the goal of improving government operations, economic growth and the quality of life as a society. In fact, Singapore was named the smartest city in the world, according to the 2021 Smart City Index developed by the International Institute for Management Development (IMD), topping the charts as ‘an urban setting that applies technology to enhance the benefits and diminish the shortcomings of urbanization for its citizens.’

2. The Lion City Roars With the Highest Cloud Adoption

It makes sense the smartest city in the world also ranks highest when it comes to the adoption of cloud-based services. Across Southeast Asia, nearly nine in ten IT decision makers state they are using cloud-based services, according to a recent Alibaba Cloud survey. Survey findings also reveal the digital growth in this region has contributed to the rate of cloud adoption, with more than 70% of respondents saying their company is using more cloud services than ever before.  

Cloud adoption in Singapore shows no signs of slowing down any time soon as companies across a wide variety of industries, including financial services, retail, media, healthcare and manufacturing, are using the cloud to streamline processes and improve customer engagement. Investment in the public cloud is expected to reach US$3.6 billion in 2023 in Singapore, according to the Singapore Market Report from Boston Consulting Group (BCG).

Cloud services continue to take hold across the area as investments in emerging technologies and services powered by the cloud skyrocket:

●  Artificial Intelligence (AI): Last November, Singapore announced the launch of two new initiatives dedicated to AI research, the National AI Program in Government and the National AI Program in Finance. The city-state also announced it will dedicate an additional US$129 million on top of the US$360 million already earmarked for AI research, furthering its goal to make a positive impact on the economy and society overall.

●  Internet of Things (IoT): The Singapore IoT market size is expected to reach nearly US$3 billion by 2025 as hundreds of IoT startups raise millions to further the advancement of their tech platforms. Plus, the Singapore government has established the Sensors and Internet of Things (SIOT) division to help develop industry standards around security and design.

●  Cybersecurity: With IoT adoption on the rise, it is important to remember these “connected” devices also pose security risks, opening potential entry points for hackers. As a result, a focus on cybersecurity is essential. Last month, Singapore announced the development of the National Integrated Centre for Evaluation (NICE). This US$14 million cybersecurity assessment and security center will allow manufacturers and developers to test and certify their products. Furthermore, according to Infocomm Development Media Authority (IMDA), a Singapore government agency, the cybersecurity market in Singapore is estimated to reach US$889 million in revenue this year.

3. Singapore Is the Ideal Spot for MNC and Regional Headquarters

Strategically located in the heart of Asia, this global hub for tech and digitalization touts a highly qualified workforce pool, a stable political environment and a strong financial framework, making it an ideal location for multinational and regional companies to lay down roots and set up shop. According to Singapore’s Economic Development Board (EDB), Singapore is the world’s top transhipment seaport, conveniently located within a seven-hour flight radius to half the world’s population.

Companies across the globe are taking notice of the many benefits this city-state has to offer. More than 37,000 international companies, including 7,000 multinational companies, have headquarters here, including icons like Apple, Microsoft, General Electric and UPS. In other words, Singapore is the place to be for business growth across a wide range of industries.

4.  APAC’s Top Data Center Market Is Equipped with Robust Digital Infrastructure

With the massive digital transformation taking place in Singapore comes the need for best-in-class data centers to support it. With that said, it’s no surprise that Singapore was recently ranked second place, alongside the United States’ Silicon Valley region, for top data center markets. Critical to supporting connectivity and digitalization on a broad scale, Singapore’s robust data center infrastructure ties in perfectly to support the country’s digitalization initiatives and rapid growth.

Boasting high broadband speeds and a global network of undersea cables, Singapore is attracting major multinational corporations to build their data centers here. Google has three data centers in Singapore, with investments totaling about US$850 million since 2011. Later this year, Facebook’s Meta Platform is expected to open a US$1 billion data center in Singapore — its first in Asia.

An Exciting Time for Singapore and BDx

As Singapore tops the charts as a leader in cloud adoption, the smartest nation in the world, and a key location for multinational companies’ headquarters, it’s clear to see why this city-state is at the top of its game. And there is a great need for world-class, sustainable data centers to help keep that momentum going.

My company, BDx, is well on its way to meeting that need. As a leading data center, colocation and hybrid cloud solutions provider in Asia-Pacific, we operate several facilities throughout the region, meeting the growing digital requirements of hyperscalers, multinational corporations and financial services enterprises. In April, we relocated our global headquarters to Singapore, and over the next year, we will triple our investments in this thriving market. With decades of experience and expertise managing the effective operations of data centers and an unwavering commitment to sustainability, the BDx team is excited to play a part in taking Singapore’s digital advancements to the next level.

We are laser-focused on efficiency and sustainability and have been hard at work addressing challenges and exploring ways to improve. For instance, we recently launched 360°View, a groundbreaking data center agnostic platform delivering critical carbon tracking and hybrid environment monitoring. We are also partnering with Sembcorp Marine and the National University of Singapore to further the development of offshore data centers.

To learn more about BDx or to schedule a tour of our Singapore facility, please reach out to marketing@bdxworld.com.