Singtel and Hitachi aim for sustainable data centres
As demand for AI and cloud services rapidly increases, Japan has become one of the largest and fastest-growing data centre markets in the Asia–Pacific region. The market is expected to achieve a compound annual growth rate of 9.8% and reach US$5 billion by 2028.1
To help meet this need, Singtel and Hitachi have signed a memorandum of understanding (MOU) to collaborate on next-generation data centres and GPU Cloud in Japan and potentially the wider Asia Pacific region under the umbrella of Singtel’s Digital InfraCo unit.
The partnership will combine Singtel’s data centre and connectivity expertise and technology platforms with Hitachi’s differentiating capability that enables end-to-end data centre integration including green power solutions, cooling systems, storage infrastructure and data management.
Together, the companies intend to sustainably enhance data centre performance and capabilities, thereby accelerating AI adoption and digital transformation of enterprises.
Bill Chang, CEO of Digital InfraCo, said, “Our strategic partnership with Hitachi, a leader in digital systems and services fields, opens up new opportunities in a strategically important and expanding Japanese market.
“Building a strong ecosystem of partners has always been a priority at Singtel to better serve our customers and broaden our global reach.”
Singtel created Digital InfraCo in mid-2023 to further innovation and economic growth in the Asia–Pacific’s digital economies. Digital InfraCo’s portfolio includes Nxera, which encompasses its regional data centre arm, subsea cable and satellite businesses, and the Paragon platform — all of which are important to advancing AI in the region. Digital InfraCo plans to launch GPU-as-a-Service (GPUaaS) later this year to better support enterprise AI adoption.
Toshiaki Tokunaga, Executive Vice President and Executive Officer at Hitachi, said that since its inception, Hitachi’s corporate philosophy had centred on addressing the challenges faced by customers and society.
“As generative AI continues to drive new innovations, the issues of environmental impact due to rising electricity demand is becoming more prominent. Striking a balance between these two factors is a significant mission for Hitachi’s Social Innovation Business,” Tokunaga said. “We are delighted to embark on this mission through our strategic alliance with Singtel.
“By combining Singtel’s expertise in the development and operation of sustainable data centres with the comprehensive capabilities of the Hitachi Group, ranging from green power solutions to facility and data management, we aim to enable companies to utilise data centres in an intelligent and environmentally conscious manner; ultimately achieving continuous innovation while promoting sustainability,” he concluded.
1. Structure Research, Japan (Tokyo & Osaka) DCI Report 2023: Data Centre Colocation, Hyperscale Cloud & Interconnection
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