Cloud & Datacenters Magazine vol. #4 | SIJORI

FOREWORD

Welcome to the SIJORI edition of the W.Media Cloud and Datacenter magazine –a celebration of the dynamic digital landscape spanning Singapore, Johor, and the Riau Islands.

Within these pages, you’ll explore the region’s remarkable journey, from innovative technologies to collaborative initiatives driving growth and transformation.

As the SIJORI region emerges as a global digital powerhouse, this edition offers insights into the pivotal role of data centers in shaping its future. We delve into key trends, challenges, and opportunities, showcasing the region’s resilience, ingenuity, and collaborative spirit.

As always, we extend our heartfelt gratitude to the contributors and industry experts who have generously shared their insights and expertise for this edition. Their contributions have enriched our understanding and made this publication possible.

Deborah Grey

Regional Editor South Asia and Middle East

Vincent Liew

Publisher Hazel Moises

Senior Tech Journalist

Decoding SIJORI

SIJORI Growth Triangle: A Tale of Cross-Border Collaboration Inside Indonesia's Digital Transformation

What exactly is the AI supercloud?

Johor's Rise as a Data Center Hub in the SIJORI Region: TS MAHADHIR AZIZ

How Batam is strengthening Indonesia’s DC footprint

Where does SIJORI stand in the APAC Data Center Landscape?

Is Johor finally ready to emerge from Singapore’s shadow?

What Can Turbine Generators Do to Data Centers?

Breaking Barriers: Women Pioneering the Data Center Industry: DONNA LORENZEN BRIDGMAN

SIJORI GROWTH TRIANGLE: A TALE OF CROSS-BORDER COLLABORATION THREE DECADES AGO

The governments of Singapore, Malaysia, and Indonesia reached an agreement to collaboratively promote the city-state, the state of Johor in Malaysia, and the province of Riau in Indonesia. Often referred to as the SIJORI Growth Triangle, this initiative aimed to leverage the geographical proximity, diverse resource endowments, and robust logistics networks of these regions to offer investors a comprehensive opportunity.

The Genesis of SIJORI

The concept was initially proposed by then First Deputy Prime Minister Goh Chok Tong of Singapore in December 1989, who envisioned a “Triangle of Growth” encompassing the city-state, Johor to the north, and Batam Island in Riau Province to the south.

The aim of the Growth Triangle was to enhance regional economic ties and maximize the synergy between the three neighboring areas. The agreement merged Singapore's managerial skills, capital, technology, and infrastructure with the ample labor, land, and natural resources of Johor state and Riau province, its adjacent neighbors.

As additional states from Malaysia and Indonesia became part of the coalition, SIJORI underwent a name change to become the Indonesia Malaysia-Singapore Growth Triangle (IMS-GT).

The coalition was solidified through the signing of a memorandum of understanding (MOU) on December 17, 1994, by representatives from the involved nations: Deputy Prime Minister Lee Hsien Loong of Singapore, Minister for International Trade and Industry Rafidah Aziz of Malaysia, and Coordinating Minister for Trade and Industry Hartarto of Indonesia.

While specifically serving the participating nations, the Growth Triangle was perceived to yield advantages for the entire ASEAN region, with no intention to hinder those nations from engaging in other economic collaborations. Regarded as a means to expedite ASEAN's goal of achieving free trade by 2003, the Growth Triangle was seen as a contributing factor (Chan, 1994).

The genesis of the SIJORI Growth Triangle coincided with the rise of the data center industry in the late 20th century. As digital demands escalated, Singapore, Johor, and Batam saw an opportunity to collaborate. Singapore’s financial prowess combined with the land resources of Johor and Batam made for an ideal partnership.

The initiative aimed to capitalize on emerging technological trends, particularly in data services, by creating a conducive environment for investment and development. Thus, the SIJORI Growth Triangle became a symbol of regional cooperation and strategic foresight in harnessing the potential of the digital economy.

FAST FORWARD TO TODAY

The first quarter of 2024 has seen significant strides in the data center markets across Singapore, Johor, and Riau regions. These developments underscore a collective commitment towards sustainability, innovation, and expansion to meet growing demands in the Asia Pacific region.

SINGAPORE: A Hub of Innovation and Opportunity

The data center market in Singapore continues to witness significant developments, with sustainability taking center stage among recent initiatives.

Empyrion DC secured a S$133 million green term loan with UOB to enhance sustainability efforts at its SG1 Dodid Data Centre, which includes features like green walls and energy-efficient technologies. ClickUp is expanding in the APAC region, establishing a new data center in Singapore to meet increasing demand while prioritizing data safety. Atlantic.Net has launched a new cloud region in Singapore, aligning with the government’s investments in cloud computing.

Singapore has solidified its position as a global player in the data center market. Its advanced infrastructure and business-friendly environment make it a magnet for tech giants and startups alike. With cutting-edge facilities and a strategic location, Singapore has become the heartbeat of digital innovation in the region.

JOHOR: A Rising Star in the Digital Landscape

Meanwhile, the data center market in Johor is witnessing pioneering efforts towards green power adoption, with notable developments driving sustainability in the region.

GDS secured a renewable energy Virtual Power Purchase Agreement (VPPA) to achieve net-zero carbon emissions by 2030. AirTrunk partnered with ib vogt for Malaysia’s first-ever Data Center Renewable Energy VPPA, contributing to sustainability efforts with a solar farm project.

Moreover, Telekom Malaysia Bhd is considering establishing a new hyperscale data center, indicating the region’s growing prominence in the data center market. Yondr Group also announced the successful energization of its inaugural campus located at Sedenak Tech Park.

Johor has emerged as a promising contender in the data center arena. Its vast expanse of land and favorable conditions make it an ideal location for businesses looking to establish a foothold in the region. With seamless connectivity to Singapore, Johor offers a gateway to new opportunities and collaborations across borders.

RIAU: Where Opportunity Meets Affordability

Not to be outdone, across the strait of Riau Islands, the data center market is poised for growth, with strategic alliances and infrastructural developments aimed at fortifying Southeast Asia’s digital ecosystem.

BW Digital and Citramas Group signed an MoU to develop a carrier-neutral digital ecosystem within Batam’s Nongsa Digital Park, aiming to facilitate connectivity, innovation, and economic growth in Southeast Asia amid rapid digitalization.

The Riau Islands have quietly transformed into a thriving hub for data centers. Its proximity to Singapore, coupled with abundant land and energy resources, makes it an attractive destination for investors seeking cost-effective solutions without compromising on quality. The island buzzes with activity as businesses tap into its potential for growth and expansion.

Embracing the Digital Frontier: The Future of SIJORI

As we approach the brink of a digital revolution, the fate of SIJORI teeters on the edge. Recognizing the critical need to remain ahead of the curve, Singapore and Malaysia have entered into several agreements aimed at promoting cross-border collaboration and innovation.

A recent example is the signing of a memorandum of understanding (MOU) between the governments of Malaysia and Singapore, outlining plans for the joint development of a special economic zone (SEZ) in Johor, a southern state in Malaysia.

This kind of collaboration is vital for the future of the SIJORI region. By pooling resources and expertise, Singapore and Malaysia can create an environment that fosters technological progress, economic development, and improved connectivity. The establishment of the SEZ in Johor reflects their commitment to leveraging each other’s strengths and generating mutual benefits.

LOOKING FORWARD,

Looking forward, continued collaboration between Singapore, Johor, and Riau holds immense promise. By capitalizing on their unique assets and working together, these entities can drive innovation, attract investment, and position the SIJORI region as a dynamic hub for digital commerce and technology.

Through ongoing cooperation and strategic partnerships, SIJORI can navigate the challenges of the digital age and emerge as a thriving player on the global stage, ensuring prosperity for its residents and businesses alike.

Why We’re Rallying Around SIJORI: A Call to Action

The emergence of the SIJORI Growth Triangle laid the foundation for increased economic integration and collaboration among Singapore, Johor, and Riau. This cooperation fostered a spirit of synergy, leveraging each other’s strengths to drive economic growth.

The collaborative efforts attracted significant investment interest from various sectors, including digital infrastructure. As the SIJORI Growth Triangle gained momentum, it became evident that digital infrastructure was a crucial component for sustaining and enhancing economic growth.

The regions recognized the importance of developing robust digital infrastructure to support their burgeoning economies. With the establishment of SIJORI as a prominent economic region, it garnered attention from investors and stakeholders worldwide.

This international interest led to events like SIJORI Week, conceived to further showcase the potential of the region, particularly in the realm of digital infrastructure. SIJORI Week serves as a platform for stakeholders to exchange insights, foster partnerships, and explore investment opportunities within the SIJORI ecosystem.

In essence, the bold vision and collaborative efforts behind the SIJORI Growth Triangle paved the way for events like SIJORI Week, which play a crucial role in promoting and advancing the digital infrastructure landscape in Southeast Asia.

Decoding SIJORI

The Singapore-Johor-Riau Islands or SIJORI region is one of the most active data center markets in the Asia Pacific. But what makes SIJORI such an attractive destination? To answer this question, W.Media brought together Weng Yew Wong (Founder and Group Managing Director, Open DC) and James Murphy (Managing Director –APAC, DC Byte) for an exciting special episode of the W.Media Podcast.

During this power packed discussion moderated by Nick Parfitt (Research, Content and Production, W.Media), Wong and Murphy examined several interesting and key aspects of the data center market in the SIJORI region, such as Singapore’s position as the queen bee of the data center market, what is making Johor attractive, and the new kid on the block –Batam in the Riau Islands of Indonesia.

“For a variety of reasons, Singapore is a very difficult place to either build a data center or find data center space.”

James

Murphy

(Managing Director –APAC, DC Byte)

Murphy was referring to the lack of land and space on the compact island city state. Moreover, Singapore must also factor in the pressure new data centers would place on its power supply, especially in wake of the virtually explosive growth of emerging technologies like Artificial Intelligence (AI), Machine Learning (ML) etc. While these new technologies guzzle compute power, data centers supporting them guzzle electricity at an unprecedented rate. This poses further questions about sourcing this power supply from sustainable power sources.

Overwhelmed by these concerns, specially the considerable energy consumption, Singapore had, in 2019, declared a moratorium on new data center construction, that was lifted only in 2023.

“As a result of the moratorium, people started looking to neighbouring regions, and Johor became one of the options,” explained Wong.

Johor is a peninsula located in the South of Malaysia, and lies in close proximity to the regional hub of Singapore, separated only by a narrow strait. Low latency connectivity and access to the subsea cable infrastructure makes Johor an attractive option. It has therefore seen a spurt in data center deployments in a relatively short period of time.

But as Murphy points out, “A lot of the critical stuff, a lot of the connectivity, are still being housed in Singapore. Whereas in Johor, we are seeing more hyperscale deployments that may not be so latency sensitive.” He further explains, “I don’t foresee an international bank or insurance company house their core compute in Johor as it is not going to have the same connectivity or latency that say downtown Tai Seng in Singapore might have.” Therefore, Murphy does not foresee Singapore lose its numero uno status anytime soon. He also clarifies that this is not a zero-sum game, and that all three markets – Singapore, Johor and Batam – can become successful for different reasons and coexist.

Johor meanwhile doesn’t have land constraints and has been open for business with the Malaysia Digital Economy Corporation (MDEC),

a government agency under the purview of the Ministry of Communications and Digital, overseeing the country’s smooth digital transformation. MDEC was established in 1996 to lead Malaysia’s digital economy.

Wong also doesn’t see a depreciating Ringgit as a problem for Malaysia.

“The depreciation of the Ringgit is a good thing for foreign investors who mostly transact in US Dollars or Singapore Dollars.”

Weng Yew Wong (Founder and Group Managing Director, Open DC)

Murphy also agreed. “I wouldn’t say it moves the needle too much. Money is still going to be pouring in,” he said adding, “It doesn’t impact the grander plans.”

The discussion then moved on to Batam. Not only is it a short ferry ride away from Singapore, it also has close to a dozen subsea cables connecting the upcoming tech hub of Nongsa Digital Park (NDP).

“I think Batam hasn’t yet found its niche,” said Murphy. But he also points out, “Even though Jakarta has been a hot market for three years now, in terms of the actual deployed IT loads, it is still quite small, certainly for a country of over 270 million people and with vast economic potential.”

He also feels that is might be better suited to retail/wholesale overspill from Singapore.

According to Wong the access to subsea cables will make it attractive to players who want to expand beyond Singapore, but also to those who are looking for a slice of the Indonesian market. Indonesia already has an established data center market in Jakarta and growing markets in Surabaya and Bandung. Batam isvery new compared to them. “There are other regions that have developed much faster than Batam,” said Wong, adding, “In a way, it is actually lagging behind in terms of ecosystem building.”

W.Media has been watching the evolution of the data center industry in the SIJORI region keenly, and will host SIJORI Week from July 14 to July 18, 2024, with the aim to bring together a global audience of key players in the digital infrastructure space. W.Media will not only host networking parties, exhibitions, and business meetings, but also provide a platform for thought leadership presentations from end users, government representatives, leaders in technology, innovation, artificial intelligence and much more. Activities will also include a trip to Nongsa Digital Park (NDP) and even a friendly golf tournament. For more information, please visit sijoriweek.net

Inside Indonesia's Digital Transformation

In many ways, the COVID pandemic acted as a booster shot for internet usage globally. Indonesia witnessed a huge surge in internet usage. There were 212.9 million internet users in Indonesia in 2023, according to government data. In effect, Indonesia’s internet penetration rate stood at 77 per cent of the total population. The Indonesian government recognized that a digital society forms the foundation of a thriving digital economy. In most cases, digitization got a strong boost in the aftermath of the pandemic. In an equal number of cases, organizations are facing the daunting task of moving their business online.

Just to give you a sense, MSMEs represent about 90% of businesses and more than 50% of employment worldwide. MSMEs are arguably one of the most important pillars in the structure of the Indonesian economy. According to data from the Ministry of Cooperatives and SMEs in 2021, there were around 64.2 million MSMEs, contributing 61.07%, or IDR 8.573,89 trillion, to the nation’s GDP.

The Transition

In a nation experiencing a rapid expansion of its digital landscape, encompassing online commerce, ride-sharing services, and financial services, amongst others, significant business prospects and job opportunities have emerged. This evolution has not only enhanced accessibility to services but also fostered deeper connectivity with the global community.

Nonetheless, Indonesia faces various hurdles on its path towards achieving a fully-fledged digital economy. According to recent McKinsey research, online commerce is an $8 billion-a-year sector that has a direct impact on local manufacturing.

President Joko Widodo has given clear directives to leverage the momentum of digital transformation spurred by the COVID-19 pandemic. In line with this, the Government of Indonesia, through the Ministry of Communication and Informatics (Kominfo), has unveiled the digital roadmap for 2021–2024. This roadmap aims to expedite Indonesia’s digital transformation agenda and is centered around key strategic sectors.

Infrastructure is recognized as a key enabler for digital transformation in Indonesia. Data centers are at the heart of this digital transformation. All the major data center operators have strengthened their presence in Indonesia, as they see a huge uptick in digitization going forward.

For example, GDS, a prominent developer and operator of data centers across China and Southeast Asia, is showcasing the advantages of its SIJORI Connect strategy. GDS’ SIJORI Connect strategy involves expanding its investments across Singapore, Malaysia (specifically Johor), and Indonesia (including Batam and the Riau Islands). In Indonesia, GDS took the lead by initiating the development of a data center campus in the Nongsa Digital Park, becoming a pioneer in the region. This initiative not only catalyzed a burgeoning market for nearshore development in Singapore but also solidified Batam’s position as a pivotal data center and subsea connectivity

DC Infrastructure

In September 2023, GDS revealed a strategic partnership with the Indonesia Investment Authority, the nation’s sovereign wealth fund, promising to accelerate the growth and expansion of the data center landscape in the area. This strategic move is fueled by burgeoning demand within the data center market. As artificial intelligence (AI) continues to drive the need for increased computing power, the demand for capacity in the region is on a steady rise.

Among its neighbors, Singapore faces limitations such as land scarcity and high electricity costs. These challenges amplify the demand for data center capacity, a demand that GDS aims to address through its SIJORI strategy.

The government has identified specific ICT infrastructure development priorities, including the completion of 4G infrastructure in more than 10,000 subregions by 2022.

The digital economy and new-age businesses

A recent study by Google, Temasek, and Bain & Company projected Indonesia’s digital economy to exceed USD 124 billion by the end of 2025. The Indonesian government is focusing on the digital onboarding of more than 64 million MSMEs across the country, encouraging them to ‘Go Digital and Go Global’. The government is targeting 30 million MSMEs to go digital by 2024.

Indonesia is actively nurturing a startup ecosystem with government-led initiatives like the #1000StartupDigital movement. Notably, Indonesia holds the distinction of producing the highest number of unicorns in Southeast Asia, including a ‘Decacorn’ with a valuation exceeding US$ 10 billion.

The recent merger of GoJek and Tokopedia into the GoTo Group signals a significant development, as it aims to create a super app covering e-government, transportation, education, logistics, financial services, and communications. The government is advocating for the proliferation of startups in various sectors such as financial services, industry, entertainment media (digital broadcasting), agriculture, fisheries, education, health, and real estate/digital cities.

Digitalization Push

Currently, there are 202 million internet users, contributing $70 billion to Indonesia’s digital economy in 2021, with $146 billion projected in 2025, according to a World Economic Forum report. Utilizing digitisation properly can result in many new opportunities.

For example, Blue Bird Group recently decided to replace their existing proprietary dispatching system with a new open, in-house-developed dispatching system, along with an IoT device onboard in its fleet. Founded in 1972, the Blue Bird Group is the largest taxi operator in Indonesia, with a market share of 43 percent in Indonesia’s taxi services sector, including tie ups with Gojek.

This initiative helped the company achieve huge process efficiency gains as well as better customer insights. Similarly, KADIN Indonesia has created a platform to protect and assist MSMEs within the creative industry to gain access to capital and raw materials, marketing, including expanding the market locally,penetrating the export market, and expanding the coverage area through MSMEs digitalisation.

Indonesian businesses are beginning to reap the benefits of digitalization, enabling them to reach a broader national and global audience while simultaneously reducing operational expenses and streamlining transaction processes. The success of the nation’s digital transformation is dependent on society’s readiness to adopt digital.

WHAT EXACTLY IS THE AI SUPERCLOUD?

For many years now, the drive towards cloud computing has been a key factor in the data center market. Businesses andindividuals alike, are storing data and accessing apps remotely at an ever-growing rate.

What once referred to nothing more than the water vapor in the sky, is now a common term in its technological reference as well – many people on the street may not know exactly what ‘the cloud’ is or how it works, but they have some concept of remote access to data and decentralized storage (or more likely worded as “I can access my files on my phone, my laptop and my work computer”).

It is this prevalence of cloud computing that has, in recent years, brought about the need for the ‘supercloud’. Effectively an abstraction layer above multi-cloud systems, that should allow the seamless integration and control of multiple cloud systems in one place.

PRACTICAL IMPLICATIONS

Though the terminology can be somewhat abstract, and the technical implementations can be vast and varied, the overall concept is a simple one. The prevalence of cloud computing in so many facets of business and life, means that many companies are now forced to (or may not even realize/have planned to) operate multi-cloud systems. Each of these systems has its own technical specifications, its own specific uses and its own user interface.

Similarly, to one extent or another there will always be a need for some form of integration of these systems within a company. By integration, it may not be a direct technical integration, but simply the need for the transfer of data from one cloud to another, or one user having access to software on multiple clouds.

The supercloud then, is more simply an interface and control system to achieve these things. On one hand, an end user will use the same, single interface to access the varying cloud systems across a company, without even realizing there are multiple clouds.

On the other hand, the supercloud will also allow for the seamless transfer of information and data, as well as the integration of the various systems across the multi-cloud infrastructure of a business.

WHERE DOES AI COME INTO IT?

Artificial intelligence (AI) has become such a buzzword in the past twelve months, that one would be forgiven for believing the technology can do everything from solving world hunger to curing every human disease.

Of course this is very much overhyped, and indeed even the name “artificial intelligence” is somewhat of a misnomer – it is in no real way actually intelligent, but simply a complex system of clever programming and probability models that in many cases can far outperform a real human, and in many more cases not even come close.

The areas AI does excel at however, are the areas in which computers have always surpassed human beings – processing speed, data management and recall, calculations and resource allocation. It is these aspects that when integrated into a supercloud system, allow it to reach ‘the next level’.

By integrating various AI systems into a supercloud framework, it will improve the system almost across the board. Dynamic and intelligent resource allocation and optimization will increase efficiency and reduce costs.

Imagine, for example, a system that can reassign ‘which cloud’ some data is stored on to make use of free space, even when those clouds are two different systems, perhaps without the end user ever even knowing. Or an AI system that has been monitoring the long-term application use of a company’s employees, and can accurately predict that this will lead to the need for increased data storage in the next few months.

These are big picture applications, but the more technical possibilities and efficiencies are almost limitless.

CELEBRATING THE SUPERCLOUD

With the growing importance of the supercloud, W.Media is teaming up with the industry’s leading businesses and professionals, to bring a number of AI Supercloud (AISC) events to various regions across APAC, including Indonesia (16th May 2024), the Philippines (4th July 2024) and Thailand (14th November 2024).

The aim is to bring cloud, cybersecurity, and AI players together with a vision to shape the industry for greater efficiency. The lineup is expected to include more than 2,000 attendees, with over 50 AI & cloud exhibits, at least 25 insightful speakers, and a makeup of 60% C-Level executives.

First there was the cloud, then came the supercloud. Let’s see what’s next.

Johor's Rise as a Data Center Hub in the SIJORI Region

SIJORI has emerged as a thriving economic powerhouse in recent years, driven by its strategic geographical location, robust infrastructure, and progressive policies.

In this edition, W.Media had the privilege of engaging in an exclusive interview with TS Mahadhir Aziz, CEO of Malaysia Digital Economy Corporation (MDEC), as he shares his invaluable insights and perspectives on the burgeoning digital ecosystem of SIJORI.

What are the key advantages or benefits that make Johor an attractive destination for investment, particularly in the context of data center expansion?

The strategic positioning of Johor offers unparalleled advantages, characterized by its proximity to international connectivity hubs and favorable geographical conditions. Bolstered by robust infrastructure, including a dependable power supply and cutting-edge connectivity, Johor presents an enticing proposition for data center operations. Its competitive operational costs, coupled with a stable economic environment and unwavering government support, further solidify its status as a prime location for data center investments.

These strategic advantages position Johor as a premier destination for businesses seeking to establish and expand their operations in the digital economy.

A) Energy: Johor benefits from Malaysia’s robust energy infrastructure, ensuring reliable and affordable power supply for data center operations. Additionally, the region has potential for renewable energy sources like solar, biogas and biomass for sustainable energy practices in data centers.

B) International Connectivity: Johor’s strategic location adjacent to Singapore provides access to one of Asia’s major internet exchange points. This proximity ensures high-speed international connectivity and low-latency connections to global markets, making Johor an ideal location for serving regional and international clients.

C) Cost of Doing Business:

Compared to neighboring Singapore, the cost of doing business in Johor is relatively lower, including land costs, labor, and operational expenses. This cost advantage allows data center operators to achieve competitive pricing for their services while maintaining high-quality infrastructure and services.

D) Government Facilitation: Under the auspices of the Malaysian government, spearheaded by MDEC, a proactive stance is taken to champion investments in the digital infrastructure sector, particularly in the establishment and expansion of data centers. Government-backed incentives, strategically designed tax breaks, and a streamlined regulatory framework are deployed to create an environment conducive to data center expansion within Johor. These concerted efforts not only attract significant investments but also position Johor as a focal point for digital infrastructure development, thereby bolstering Malaysia’s standing as a regional

TS MAHADHIR AZIZ

Executive Officer

E) Data Centre Ecosystem: Johor’s burgeoning data center ecosystem is rapidly evolving, marked by the emergence of established operators and service providers. This dynamic landscape presents fertile ground for collaboration, knowledge exchange, and access to specialized expertise, fostering a robust ecosystem poised for exponential growth. Such synergies not only enhance the allure of Johor as a premier data center destination but also pave the way for unparalleled innovation and advancement within the region’s digital infrastructure landscape.

Malaysia Digital Economy Corporation (MDEC) Chief

Could you elaborate on the importance of investments made by major companies such as GDS, Bridge DC, and Equinix in Malaysia, specifically focusing on Johor, and how these investments have influenced the development of infrastructure in the region?

Strategic investments from industry leaders such as GDS, Bridge DC, and Equinix are pivotal in propelling Malaysia’s digital economy to new heights. These significant investments wield far-reaching impacts that reverberate both directly and indirectly across the nation’s economic landscape.

A) Job Creation: The establishment and expansion of data centers by these companies create employment opportunities directly within the data centers, ranging from technical roles to administrative positions. Additionally, the growth of data centers stimulates job creation in related industries such as construction, maintenance, and support services.

B) Technological Advancements: These investments bring cutting-edge technology and infrastructure to Malaysia, fostering innovation and expertise in the region. Advanced data center facilities equipped with stateof-the-art hardware and software contribute to Malaysia’s technological advancement and competitiveness in the global digital landscape.

C) Infrastructure Development: The presence of major data center operators necessitates the development of robust infrastructure, including reliable power supply and high-speed internet connectivity. This not only supports data center operations but also benefits other industries and the broader ecosystem. Improved infrastructure enhances overall productivity and competitiveness.

D) Catalyst for Growth: Connectivity provided by global companies attracts more businesses to the region. This influx of businesses contributes to economic growth and enhances the reputation of Malaysia as a favorable destination for data center development. The establishment of data centers serves as foundational elements for the digital transformation of industries by providing essential infrastructure and technologies that drive innovation and efficiency.

How do you foresee the demand for data centers evolving in the SIJORI region, considering the growing demand and limited

The surging demand for data centers, particularly in alternative locations like Johor, not only presents an economic opportunity but also drives infrastructural development. Johor’s ongoing infrastructure projects, coupled with advancements in connectivity, position it as an increasingly attractive destination for data center investments. In contrast, Singapore’s limited space intensifies competition for suitable locations, further elevating Johor’s appeal and drawing interest to nearby regions like Batam. These strategic locations offer competitive cost structures and robust infrastructural support, making them prime contenders in the evolving data center landscape.

The establishment of the JohorSingapore Free Economic Zone (JSFEZ) underscores the government’s unwavering commitment to fostering economic growth and cross-border cooperation. By enhancing digital infrastructure and fostering collaboration in research and innovation, the JSFEZ endeavors to diversify the economy and attract a myriad of new businesses. Furthermore, the zone’s emphasis on sustainability aligns with global trends toward environmentally friendly practices. With a focus on renewable energy projects, the JSFEZ not only mitigates environmental impact but also positions itself as a trailblazer in sustainable economic development, setting a precedent for regions worldwide.

As sustainability considerations gain prominence, Malaysia proactively acknowledges the imperative for strategic planning and collaborative efforts to ensure the long-term viability of data center projects in the SIJORI region. By integrating sustainable development practices into the design and operation of data centers, Malaysia aims to meet the surging demand for green and energy-efficient solutions. This approach not only supports economic growth but also underscores the nation’s commitment to environmental protection.

Through concerted efforts and innovative initiatives, Malaysia strives to establish a beacon of sustainable development and environmental stewardship in the global arena.

Q & A

How do you assess the current state of connectivity and technological infrastructure in the SIJORI region, and what improvements are necessary to support further expansion?

Malaysia’s strategic positioning along critical submarine cable routes, coupled with its extensive terrestrial cable network, solidifies its role as a cornerstone hub for global connectivity. Particularly, Johor emerges as a focal point poised for exponential growth in connectivity capacity, fuelled by ongoing investments in telecommunications infrastructure and the burgeoning demand for digital services. The region anticipates substantial enhancements through expansion projects and the integration of new cable systems, ensuring Johor’s readiness to meet the escalating bandwidth requirements of the region.

On the energy frontier, Malaysia’s commitment to promoting renewable energy stands as a testament to its dedication to reducing dependence on fossil fuels. Encouraging investments in solar farms and biomass projects leverage the country’s abundant natural resources for sustainable energy solutions. Notably, Johor distinguishes itself with high potential in renewable energy sources, particularly biomass, attributable to the ample palm oil plantations dotting the region’s landscape.

While Singapore boasts a wellestablished and technologically advanced infrastructure, Johor actively amplifies its connectivity and champions renewable energy initiatives. Concurrently, Batam emerges as a compelling destination for technological expansion. Through collaborative partnerships and synergistic endeavors, intergovernmental cooperation will fuel regional growth, attract investments, and propel technological advancement across Southeast Asia.

How do you assess the current state of connectivity and technological infrastructure in the SIJORI region, and what improvements are necessary to support further expansion?

The SIJORI region is poised for exponential growth in demand for data center services, driven by the escalating reliance on digital services, cloud computing, and emerging technologies. This surge in demand underscores the critical need for robust and scalable data infrastructure to meet evolving business needs. Continued investments in highspeed networks and international connectivity will be paramount in bolstering the region’s data center capabilities, solidifying its position as a premier digital hub in the Asia-Pacific region.

The burgeoning demand for AI solutions to analyze and interpret large datasets has surged dramatically within the SIJORI region. Data center operators in Johor are spearheading this technological evolution by integrating AI-driven technologies to optimize resource allocation, enhance energy efficiency, and fortify security measures.

Through collaborative efforts between the AI industry and data center operators, tailored AI solutions are being developed to streamline data center operations, paving the way for unprecedented levels of efficiency and innovation. This convergence not only creates a fertile ground for technological advancement but also opens up abundant opportunities for skilled professionals in AI and data analytics to thrive in the region’s burgeoning digital landscape.

As we look to the future, sustainability emerges as a pivotal consideration for the SIJORI region’s burgeoning data center industry. Anticipated investments in green technology and renewable energy solutions underscore a collective commitment to environmental stewardship and resource conservation. Moreover, cross-border collaborations and shared infrastructure initiatives are poised to amplify the region’s attractiveness for data center investments, fostering a collaborative ecosystem conducive to sustainable growth.

END OF INTERVIEW

HOW BATAM IS STRENGTHENING INDONESIA’S DC

BATAM ISLAND

The transformation of Batam from a humble city to a digital economy infrastructure hub has garnered attention, with its strategic advancements attracting interest from global businesses, particularly those from Malaysia and Singapore. In the aftermath of the COVID pandemic, the city is now beginning to reap the investment benefits, which is helping Indonesia’s economy too.

Since the last couple of years, many of the leading data center service providers, including hyperscalers, have set up bases in Batam. The strategic role of BP Batam and the Government of Batam in accelerating urban development has positively impacted the city’s economic growth.

ADVANTAGE BATAM

All data centers in Indonesia are located in the capital, Jakarta, and as business centers grow in other cities, Batam gains prominence. For starters, Batam is an island in Indonesia’s Riau Islands Province, just 20 km south of Singapore.

Batam presents distinctive advantages owing to its strategic positioning in close proximity to major financial hubs such as Singapore and neighboring nations. Moreover, the favorable seismic stability in Batam renders it a prime choice for establishing data center facilities.

Nongsa Digital Park (NDP), located on the NE part of Batam Island, is connected in close proximity to more than a dozen international submarine fiber-optic cable segments that land only approximately 5 km away with direct links to Indonesia, Singapore, and the US West Coast. This makes NDP a potential location for operators looking to target the Asia-Pacific market. Marco Bardelli, Board Member and Senior Executive Director at Nongsa Digital Park explains:

“

The very close proximity of NDP to Singapore allows for planned new additional submarine fiber optic capability to reach directly NDP with repeaterless cables that drastically reduce latency, making the DC infra in NDP “as if” it was in Singapore.”

As per recent findings from industry authorities, the data center industry in Batam presents considerable opportunities for enterprises aiming to broaden their presence in the Southeast Asian region. The Indonesia Data Center market (by capacity) grew from 134 MW in 2020 (it was 80 MW in 2018) to 363 MW in 2022, with an impressive CAGR of 64% (source: Broad Group).

To put it in perspective, NDP is located in Batam and wwas granted a Special Economic Zone (SEZ) status on June 8, 2021, which comes with various benefits. NDP has taken charge of providing state-of-the-art supporting infrastructure for services such as water, electricity, and connectivity with brand new distribution systems that will be completed by Q2 this year.

This is in line with Indonesian government guidelines received by the NDP to ensure that the Special Economic Zone is indeed an ideal landing point for data center operations, as pointed out by Bardelli.

Ensuring the success of the data center industry necessitates robust infrastructure, particularly adequate electricity and water supply.

SECURITY MEASURES

Security is of paramount importance for data centers and newer hubs have to go that extra mile to prove that enterprise data is in safe hands. So, what robust security measures are in place within NDP to ensure the physical and cyber security of data center facilities? "Well, from the regulatory side we have the Special Economic Zone status and we are strengthening the perimeter of the SEZ and new submarine connectivity is planned to come directly inside the NDP area directly from various international locations, so security can be significantly enhanced," said Bardelli.

EXCELLENT FIBRE OPTIC DOMESTIC & INTERNATIONAL CONNECTIVITY

Nongsa Digital Park (NDP) IS designated to be one of the main digital economy gateways in Indonesia.

Located in Indonesia’s Batam Island next to Nongsa Ferry Terminal, 35 minutes from Singapore’s Terah Merah

TMFT only 10 minutes from Changi & NTB 15 minutes from Batam Hang Nadim international airport.

Currently 9 International Submarines Fiber Optic Cable, landing aprox. 2.5 km from NDP, link it directly with various part of Indonesia, Singapore and the US West Coast.

KEY GROWTH DRIVERS

Nongsa and Batam have been described by Indonesian President Joko Widodo as a “digital bridge” between Singapore and Indonesia, as the demand for technology talent, sustainable power, land to develop data centers, and capacity continues to grow. One of the reasons for Batam’s emergence can be attributed to regulations in Singapore.

In 2019, the Singapore government decided to put a moratorium on building hyper-scale DCs in order to contain carbon consumption. Due to this, large enterprises and OTTs have been forced to rely on neighboring countries such as Malaysia and Indonesia for DC services.

Hyperscale data centers are looking to fully apply the next- generation Smart DC solution and actively use local renewable energy to achieve agile delivery and green eco-operation of their data centers on campus.

All this has attracted many of the leading data center service providers in the world. As this article started out, the first data center on the campus is being completed by GDS, over an expansive area of almost three hectares. GAW Capital is also slated to complete its first building by year end.

Construction works have started for the strategic Indonesia’s Government National DC campus, which will be located over 5 hectares of land in NDP. BW Digital announced the beginning of March 2024 land acquisition for a 80 MW DC campus and PDG Group Chairman publicly spoke about an investment of USD 1 billion in 96 MW DC infrastructure in NDP.

Now, NDP is quickly approaching saturation in terms of land available for data center development, we recently added another large player into our ecosystem and we are now left with not many other opportunities for new interested parties. So our focus is now shifting on how to support the activity of the data center operators with state of the art services, robust incentives and protective measures and enriching the overall ecosystem with initiatives that can represent collaboration opportunities for the data centers,” says Bartelli.

NDP is not just a data center hub, it is a Digital Economy cluster (or, as defined by President Jokowi, the “digital bridge” connecting Indonesia to Singapore and the rest of the world) that has business presences and education activities with international companies such as (in alphabetical order) Accenture, AIA, Apple, AWS, Epic Games, IBM, Infineon, RMIT University Melbourne.

Continued investment by data center operators in the Nongsa Digital Park further strengthens the SEZ’s position as a data center hub in the region.

Thanks to its location and connectivity with the largest connectivity hub in the region, Batam, with locations such as NDP and Kabil Industrial Estate (the latter, only 15 minutes from NDP, is where PT Telkom and Singtel are developing DC infrastructure in JV) is an ideal location for driving Indonesia’s digital economy forward.

Marco Bardelli

Board Member and Senior Executive Director at Nongsa Digital Park

Where does SIJORI stand in the APAC Data Center Landscape?

SIJORI is a prosperous and blooming region situated in the heart of Southeast Asia. It is positioned within the soon-to-be launched ASEAN Single Window initiative, offering a multitude of opportunities and benefits for economic agents involved in the trading industry.

Furthermore, thanks to its strategic location and generous incentives offered by the local authorities, SIJORI has managed to attract substantial foreign investments over the years.

However, since the world is constantly evolving, especially in the aspect of technology and economy, it is crucial to understand how SIJORI’s position in the APAC region stands currently in order to strategize for sustainability and growth in the future.

In the current Asia Pacific data center landscape, Glen Duncan, the Head of Data Center Research for the APAC Region at JLL, sheds light on the dynamics of SIJORI, such as emerging market trends, competitive landscapes, and market maturity, and explains where it stands today in the APAC region.

Sustainability Takes Center Stage

While sustainability has long been a cornerstone in data center operations, recent years have seen an intensification of efforts in this arena. With a keen focus on efficient design, construction, and operations, alongside a push for renewable energy usage, stakeholders from governments to environmental groups are placing unprecedented pressure on data center operators.

This surge in sustainability concerns has only been amplified by the explosive growth of artificial intelligence (AI) technology, which according to Duncan, has been a game-changer since 2023, driving up energy demands even further. As a result,

“Operators are looking for the optimal geographic locations for data centers beyond regional hubs like Singapore now and edge locations are becoming more attractive alternatives,”

Singapore’s Constraints and Spillover Effect

Singapore, a key player in the APAC data center landscape, has faced supply constraints since 2019 due to governmental policies aimed at aligning with international climate agreements.

“Demand has far outstripped supply. Operators and investors have been looking to the other geographies in the SIJORI region to act as potential spillover locations for this demand. There has been significant land banking in both Johor and Batam and also significant new data center builds in different clusters of Johor,” said Duncan.

Understanding SIJORI’s Unique Position

Duncan highlights the distinctive characteristics of Indonesia, Singapore, and Malaysia within the SIJORI context. “Indonesia (175+ million) has a much larger population than Singapore (5+ million) and Malaysia (33+ million).

This gives Indonesia a large domestic market for digital services that require data center infrastructure. Singapore’s data centers predominantly serve a Southeast Asian regional market rather than just its domestic market. Indonesia (1,904,569 km2) also has a much larger land area than Singapore (734.3 km2) and Malaysia (330,803 km2).”

Indonesia, with its vast population and land area spread across thousands of islands, presents a unique landscape for data center development. Duncan said “there is significant variation in quality of infrastructure and population density across each of these islands. For example, Karimun, Bintan and Batam all vary markedly. From a data center perspective, most development will occur in Nongsa Digital Park for the foreseeable future. Singapore’s infrastructure on the other hand is world class across the island,”

The growth of the SIJORI region is being shaped by some key factors that are also influencing growth across the wider Asia Pacific area according to Duncan. Things like the increasing use of cloud services, advancements in artificial intelligence, and the growing number of digital devices and services are all playing a big role. There’s also a focus on making data centers more efficient and sustainable. Singapore, in particular, is emerging as a hub for these trends, with major players like Facebook setting up massive facilities there. This means that SIJORI is becoming a central hub for the region’s cloud and data infrastructure.

“Continued cloud and hyperscale build out in APAC will be the key driver shaping the SIJORI region and we are seeing this already with large data centers already completed or under construction in Johor servicing cloud tenants,”

Competitive Advantage and Market Maturity

“In APAC, there are several metros that act as regional hubs including Singapore, Hong Kong, Shanghai, Sydney and Tokyo. Each of these hubs serves their own sub-regions and doesn’t necessarily compete with the other hub metros. Singapore acts as the hub for Southeast Asia and its competition for this role is other Southeast Asian metros including Kuala Lumpur and Jakarta, as well as Bangkok and Manilla,” said Duncan.

However, in assessing SIJORI’s competitive advantage relative to other APAC regions, Duncan underscores the region’s role in consolidating Singapore’s hub status.

“The SIJORI region in fact has consolidated Singapore’s regional hub status because it has provided alternative land and power sources, as well as different labor pools and labor costs upon which to draw in order to establish spillover clusters in neighboring Johor and Batam. Through SIJORI, the Singapore market has capacity for expansion,”

While Singapore stands as a mature hub market with 1000+ MW of supply, Malaysia and Indonesia are positioned as emerging markets, with significant potential for growth, with a total national supply approximately 200 MW each.

Opportunities and Challenges Ahead

The SIJORI region presents a unique landscape of opportunities and challenges distinct from other parts of Asia Pacific. It has been formed to appeal to both regional and international investors.

“The SIJORI Growth Triangle is an agreement between Singapore, Malaysia (specifically Johor) and Indonesia (specifically Riau Islands) that seeks to make the subregion attractive to regional and international investors. The agreement links the infrastructure, capital and labor skills of Singapore with the natural and labor resources and the land of Johor and the Riau islands.,”

However, despite its advantages, sustainable energy sources remain a pressing challenge, highlighting the need for concerted efforts to harness renewable

“In the coming years Indonesia and Malaysia have the potential to become major producers of renewable energy which can be channeled into the subregion and power the industry,” said Duncan

Looking ahead, Duncan anticipates robust growth for the SIJORI region, positioning it as a pivotal player in the APAC data center landscape. While emerging markets like Jakarta, Kuala Lumpur, Bangkok, and Manila are also ramping up their data center capacities, potentially affecting Singapore’s demand, the overall surge in demand across Southeast Asia is expected to outweigh any setbacks.

“The SIJORI region is effectively Singapore. The subregion enables Singapore to maintain its regional data center hub status for Southeast Asia and as such the subregion as a whole will continue to grow strongly,”

In essence, SIJORI stands poised at the nexus of innovation and opportunity, charting a course towards sustainable growth and technological advancement in the dynamic landscape of the Asia Pacific data center industry.

Dr. Glen William Duncan Head of Data Center Research for the APAC Region at JLL

Kuala Lumpur City

IS JOHOR FINALLY

READY TO EMERGE FROM SINGAPORE’S SHADOW?

Johor, located on the Southern part of the Malaysian peninsula, has established itself as a thriving data center market in the Asia Pacific. Though it mainly started attracting attention only after Singapore declared a moratorium on new data center development in 2019, Johor is carving its own independent identity as a data center destination of choice. So, let us take a closer look at what makes Johor such an attractive data center market.

Johor’s place in the wider Malaysian data center market

Source: Arizton Advisory & Intelligence

Location matters

The Singapore factor Arizton Advisory & Intelligence had valued the Malaysian data center market at US$ 280 Million in 2023, and expected it to reach US$ 1.23 Billion by 2029, growing at a Compounded Average Growth Rate (CAGR) of 27.97 percent during the forecast period (2024-2029). Meanwhile, Mordor Intelligence says, “The Malaysia Data Center Market size is estimated at 0.71 thousand MW in 2024, and is expected to reach 1.36 thousand MW by 2029, growing at a CAGR of 13.73% during the forecast period (2024-2029).”

While Malaysia already has two other big data center markets in Kuala Lumpur and Cyberjaya, Johor has also evolved into a major market in its own right, especially in wake of the (now lifted) moratorium on new data center development in Singapore. Johor has also grown because of a variety of other significant factors such as location, demand, excellent connectivity via subsea cables, and most importantly availability of land and power.

Today, top data center operators such as GDS, Open DC, Keppel Data Centers, Princeton Digital Group, Air Trunk, Yondr and many more have facilities in Johor. Additionally, there are many big-ticket projects in the pipeline including those from Bridge Data Centers, Microsoft, and many others, making Johor one of the most sought-after data center markets in APAC. So why are all these big players making a beeline for Johor?

Johor is located, just north of Singapore, across the narrow Johor Strait. This places it bang in the middle of a bustling hub of business and commerce in South East Asia in close proximity to other established and emerging markets such as Indonesia, Vietnam, Thailand and Philippines.

The banking and financial sector is huge in Southeast Asia, with millions of digital transactions worth billions of dollars are processed every day. Moreover, as many of these countries are also manufacturing hubs and are relying increasingly on artificial intelligence and machine learning to streamline their processes and optimise their operations, the demand for compute power has skyrocketed, necessitating data center development. Add to this, growing advocacy for data localisation and sovereignty.

“The Johor market is one of the most active markets in the region, underlined by favourable existing growth and even greater potential. The credibility of the market is being further established by various hyperscalers which are either building or taking space in new facilities across Johor.”

James

Rix, Head of Data Centers and Industrial – Malaysia & Indonesia, at Jones Lang LaSalle (JLL)

In 2019, Singapore, the uncrowned queen of the data center market in South East Asia, discovered something disturbing. While the data center market was booming on the island city state, the facilities were also guzzling power at an unprecedented rate. By some estimates, power consumption by data centers alone accounted for 7 per cent of Singapore’s totalpower consumption. This was not in line with Singapore’s sustainability goals, especially when it was determined to control its carbon footprint.

Singapore thus placed a moratorium on new data center development in 2019. This sent data center operators north to Johor where they were welcomed with open arms, cheaper land and abundant power supply. In 2020, the Covid-19 pandemic also struck, virtually shutting down the world and forcing people and businesses to switch to digital transactions. This led to an even greater demand for compute power and digital infrastructure, causing the data center industry to actually become one of the few industries to grow during the pandemic.

Three years later, Singapore lifted the moratorium in 2022, but it placed several stringent conditions for new data center development including a cap on IT load.

But just across the water, Johor remained amiable and inviting as ever.

What is Johor doing right?

While it is true that Johor benefitted from the Singapore moratorium, as it started getting the attention of global players who could no longer go to Singapore, one cannot deny that over the last few years, Johor has also grown and developed as a market in its own right.

JLL’s James Rix concurs, “Whilst it is true that Johor has taken onboard many operators from Singapore, the ability for Johor to react in a timely manner has been impressive. This, along with the power availability and fewer land constraints makes Johor a force to be reckoned with in the SEA data centre market.” Pointing out what Johor is doing right, he says, “Johor is making itself available and friendly to the development of data centre facilities, and this will only help attract both operators and investors. Additionally, cable landing stations and linkages to existing stations will help to increase connectivity.”

The Malaysian government has also played a significant role in cultivating Johor’s image as that of a businessfriendly data center market. It has not only been providing tax incentives, but organisations like the Malaysia Digital Economy Corporation (MDEC) have also worked to attract companies, talent and investment.

Source: Mordor Intelligence

“We have an agency to promote ICT (Information Communications Technology) development and they have done a good job.”

Weng Yew Wong, Founder and Group MD, Open DC.

Open DC, that has two data centers, JB1 and JB2, in Johor at present. But Wong stresses on the need to develop a robust policy with respect to Environmental Social Governance (ESG) goals. He also points to the upcoming Special Economic Zone (SEZ) in Iskander region that aims to promote economic growth in both Johor and Singapore. “We have seen Singapore players coming to Johor to set up data centers. They are facing questions from their customers who want to transfer assets between two data centers. Having this SEZ will help to facilitate this transfer of assets,” he says, hoping that the tax burden would be removed in the SEZ.

What Can Turbine Generators Do to Data Centers?

In the field of innovative technology, Kawasaki has long been a name synonymous with groundbreaking advancements and cutting-edge solutions. From motorcycles to heavy machinery, their contributions to various industries have been substantial.

However, in recent years, Kawasaki has delved into an area crucial for the modern digital age: data centers.

The surge in internet activity and computing demands has propelled the importance of data centers to unprecedented heights. These facilities serve as the backbone forcountless businesses and organizations, requiring uninterrupted operation 24/7. Recognizing this critical need, Kawasaki has developed turbine generators as a reliable backup power solution tailored for data centers.

Turbines as Backup Generators

The significance of backup generators cannot be overstated in the context of data centers. Even a momentary power outage can translate to substantial losses in revenue, productivity, and reputation damage. Thus, the quality and reliability of backup power sources are paramount.

According to Kawasaki, their turbine generators possess several characteristics that make them ideal for data center backup power:

High Power Quality: Turbine engine rotating speed is high (18,000 – 22,000rpm, depending on engine models) and the total inertia is large, typical steady state frequency deviation is within +/‐ 0.3%. Steady state voltage fluctuation is below +/2%. Voltage drop at 100% load pickup is below 3.5% and the recovery time is within two seconds.

Fast Ramp-Up: It is acceptable for backup turbine generators to apply one step (100%) block loading and shedding within +/‐ 5% of transient frequency deviation. Normally, diesel generators require several steps and take time until they reach their full capacity. Turbine generators can increase operational flexibility.

Excellent Startup Reliability: As a data center needs to continue to function correctly even in the event of a grid power outage, backup generators must supply electric power to data centers during the outage. Kawasaki turbine generators have been showing excellent performance in Japan, which has been hit by earthquakes frequently.

For example, 1,219 units out of 1,224 units of Kawasaki backup turbine generators including five failed units that received improper maintenance by the owner (not Kawasaki responsibility) successfully started up and supplied power in the blackout area at the Great Hanshin Earthquake (1995), Tokyo Area Blackout (2006) and Great East Japan Earthquake (2011). The start‐up reliability was 99.6% including five failed units.

SOLUTIONS

Compact Sizes and Light Weight:

Turbine engines have a high power density, they are basically compact and lightweight. Kawasaki 6000 kVA turbine generators, for example, need approximately 60% of installation space and their weight is approximately 50% compared to typical diesel generators to produce the same power. This feature can significantly reduce the size of the data center building and its cost.

Low Noise/Vibration: The turbine generator has an acoustic enclosure, whose noise level is 55 dBA (optional) – 85 dBA (standard) at 1m from the enclosure wall. The noise frequency is higher than a reciprocating engine, which is easier to attenuate.

Diesel engines change reciprocation to rotation to rotate an alternator, meanwhile, turbine engines do not have reciprocation. Turbine engines, therefore, have low vibration, which allows for smaller foundations and simpler anti‐vibration measures.

Fuel Flexibility: Both Liquid fuel and gas fuel can be used for turbine engines. Turbine engines are ready for bio fuels such as HVO (Hydrotreated Vegetable Oil) and SAF (Sustainable Aviation Fuel). Those features of turbine engines can contribute to reducing exhaust gas emissions.

Kawasaki’s backup turbine generators, renowned for their performance, currently hold a 90% market share in turbine generators for data centers in Japan.

However, Kawasaki is now expanding its focus beyond Japan to cater to land-constrained areas.

Turbines as Backup Power for DCs in Land-Constrained Areas

In areas where land is limited, such as urban centers and regions, turbine generators present an optimal solution. Kawasaki’s case studies have shown that in the case of the 24 MW IT load project and at PUE=1.5, by applying turbine generators showed 17% less space and 19% in cost reduction compared to conventional backup power solutions, making them particularly attractive for data center operators and developers.

“ ”

Our target area also includes the SIJORI region, especially where land and space are limited or the prices of land are especially high. Turbine generators are a perfect solution for those who are looking for high power quality and compact size,

Said Takashi Hayashi.

Takashi Hayashi, Sales Director, emphasized the suitability of turbine generators for the SIJORI region, where high land prices and space limitations pose significant challenges.

Additionally, acknowledging Singapore’s pivotal role as a data center hub in the region, Kawasaki is actively promoting the advantages of turbine generators. Their focus on ramp-up performance, compact size, and low noise/vibration aligns with the needs of data center operators, consultants, and engineering firms in Singapore and surrounding Southeast Asian regions.

In an era where digital connectivity reigns supreme, Kawasaki turbine generators’ foray into data center backup power solutions in the SEA region based on abundant experiences in Japan signifies a commitment to reliability, efficiency, and innovation, ensuring seamless operations for businesses in the digital age.

Women Pioneering the Data Center Industry Breaking Barriers:

The data center industry, like any other technical field, has for a long time been perceived as male-dominated. However, the 21st century has seen the industry undergo a transformation with women making their mark in this critical sector.

To honor International Women’s Month, W.Media conducted an inclusive interview featuring Donna Lorenzen Bridgman, the iM Regional Chair for APAC and a member of the iM Women Global Board. Donna brings decades of experience in the data center industry, having started her journey in the late 90s.

DONNA LORENZEN (Bridgman)

iM Women Regional Chair for APAC &

iM Women Global Board

Could you tell us about your professional background within the data center industry?

I have been working professionally in the data center industry since the late 90’s, with a career that’s enabled me to work all through the UK, Europe, Australasia and across Asia. I’ve experienced a range of roles and project opportunities during the dot.com boom, the millennium non-crisis, working for start-ups, for national and multinational colocation providers, for engineering professional services providers, across banking, national telecommunications companies, for DC constructors, and for hyperscale clients.

My technical background is a Bachelor Degree in Electrical & Electronic Engineering.

I hold an engineering Fellowship, am a Chartered engineer [Electrical & Management], International professional Engineer (IntPE), Certified Project Manager (PMP), Business Continuity Practitioner (MBCI), and am a professional non-executive director.

I am also an international Trainer in the DC sector and in Business Continuity Management, working across Asia and into Europe.

I started out as a design engineer working up to regional operational management roles, and have held executive leadership and governance advisory board roles, driving strategy, technical services programs and L & D across multiple geographies and 1000+ personnel.

I’ve covered full multi-disciplinary design, all stages of commissioning, project and design management, DC operations, global vendor management, business case development, energy procurement and asset replacement strategies, developed national DC maintenance programs, undertaken far too many site DD acquisition assessments and commercial evaluations to recall – basically the full lifecycle of a DC campus project, other than front end financing.

Can you share your experience navigating a male-dominated industry like the data center sector, especially in Singapore, where most data center companies in APAC are residing at? What challenges have you faced, and how have you overcome them?

The reality is that working in Singapore is akin to being in a small, vibrant, highly concentrated and energized bubble.

The industry is relatively close knit and connected, there are the same challenges as elsewhere such as insufficient talent available to meet the current skill shortage demands, a lack of women in very senior positions, and the pressure to run as fast as possible.

Navigating the data center industry in Singapore presents no significantly different challenges to working elsewhere. There are cultural nuances like strong Asian influenced hierarchy in some companies, more narrow position descriptions which don’t necessarily stretch people and their potential for stepping into broader roles, and I have observed less focus on role modeling work life balance.

I have not faced any challenges that are not business as usual to me at my stage of career, and I prefer to emphasize that daily you just get on and navigate them, or you re-frame them, and learn from them.

How do you think your perspective as a woman brings value to the team in a field predominantly occupied by men?

I’d like to start by highlighting that women bring uniqueperspectives, different experiences, problem solving approaches, and communication styles that complement those of their male counterparts or peers; striving for gender balance encourages an environment which fosters innovation and enables inclusivity within a team or organization.

Women bring excellent communication skills, are highly collaborative and creative, are socially mature, generally well networked, and are superb multi-taskers given their nurturing, career and other non-work responsibilities. Additionally, they bring empathy and a strong professionalism to male-dominated sectors (as they generally work exceptionally hard to be noticed for their positive impact in order to get ahead).

The women I have encountered in the DC industry over many years (bar a minute number) have been very supportive of other women, do not operate with agendas to push themselves forward at the expense of others, and have a general view that good work is recognised and rewarded.

My personal perspective encompasses all the above with the addition that at some point in time it would be great to not have to continually highlight to the DC industry why #balanceisbetter. Ultimately successful organizations should encourage females and males to both thrive, to show each other respect, and to embrace better work-life balance.

Have you encountered any instances of gender bias or discrimination in your career? If so, how did you address them, and what lessons did you learn from those experiences?

What a leading question - yes and yes.

I have experienced several scenarios of gender bias. These include being overlooked for roles based on gender and challenged on my ability to perform a role fully due to perceived family commitments at the time, or my ability to service a role remotely when the incumbent ‘male’ was doing the same role remotely at that time. I have been under-paid for some of my roles at different career stages, mid-level and senior roles; when I independently sought out market benchmarking data and had a clear case for equity to present, I have been shut down on both occasions, by men as it

happens who determined they considered I was been paid fairly with respect to peers, without the opportunity for constructive dialogue– go figure!

What you’ve not asked, but which is prevalent in this industry is harassment. I have experienced sexual harassment as a young graduate in the middle of an office, with people around, and stood up to the person at the time calling this out. It did not get me anywhere in a male dominated environment, when I was one of only a handful of female engineers, and the incident was brushed under the carpet.

I have experienced harassment by colleagues in the form of underhand tactics, looking to gain personal advantage, a promotion for example at my expense or to try and shift blame for inadequate performance to anyone other than themselves, and this has been ignored along the way by others in the know. What did I learn? That not everyone holds the same standards of ethics and integrity as others, and that corporate politics and personal agendas, including greed in this very profitable industry, can cut across the ethical standards most of us hold dear.

The reality is the data center sector, or any male-heavy industry can be exceptionally tough on women, and those from marginalized communities or underrepresented cultures; if can happen to any of us if you happen to be in the wrong place at the wrong time, working in toxic cultures or you may find yourself unfortunate enough to work alongside toxic people. This is not necessarily obvious when you are working in a role, until a situation like discrimination or harassment transpires.

I addressed these challenges in the best way I knew at the time, by being assertive, by presenting data to support my case for pay equality , and by maintaining my principles, no matter the resulting outcome. I have always been a person with strong personal resilience and grit, stemming from my upbringing and childhood experiences.

It is important to build up a suite of personal resilience strategies to be able to deal with these types of challenges and pressures, should you be unfortunate to experience them; be courageous when you need to be, and especially when you think you can’t possibly be.

Can you provide examples of how you’ve mentored or supported other women or underrepresented individuals in the data center sector?

I am privileged to be involved as a mentor, both formally and informally, for a number of women over my career who have been involved in data center related fields, engineering professional services, in the business continuity management sector as well as those looking to step into governance roles. These women have been based in different parts of the world and worked in different conditions, with varying levels of professional support and means.

As far as the DC sector is concerned, I have also mentored some great men who have sought me out for collaborative, impartial advice as they have navigated role changes, training requirements, general technical upskilling, or ideas to overcome cultural barriers and bias’, as they have contemplated how best to break into the industry; this has been particularly the case over the last two years working across Asia.

Wearing my iM Women APAC Regional Chair hat, this provides an opportunity to meet a range of women across Asia, and to organize and facilitate events which provide mentorship and allyship for women in the DC industry. This opportunity for informal mentorship and adding value includes guidance around areas such as negotiation tactics, how to overcome imposter syndrome and brand positioning, as some examples.

What advice would you give to other women who aspire to pursue a career in the data center sector or any male-dominated industry?

This last question is my absolute favorite one, as I wish I’d been the recipient of even a small dose of advice, to be better informed, when I fell into this sector.

a) General advice: Firstly, never consider gender make up as part of any career decision making process, as it is totally irrelevant; all it does is make less confident women feel less empowered to succeed, if they focus on being the minority from the onset. Gender orientation makes zero difference to anyone’s ability to charter a diverse and fulfilling career, to successfully work across different geographies and societal demographics, to govern with purpose and social responsibility, to problem solve complex technical, construction or operational challenges, and to deliver positive outcomes for customers and communities.

b) Research opportunities: In terms of a career in the DC sector, there are great opportunities for those who seek them out, and for self-starters to create their own. Make sure you talk to people, approach companies for information, research widely to find out what is really on offer, including knowing the market worth – what a fair rate of pay is for different types of roles. Fortune favors the brave and those prepared to take a few calculated risks. Opportunities include enriching roles which develop skill sets, broad commercialisation opportunities, those which allow you to travel the world, to work across multiple time zones, where you can throw yourself into a melting pot of cultures and learn greatly through these experiences. Different opportunities provide varying levels of mental stimulation and require mental agility - the challenge of diverse legal, engineering, permitting regimes, sustainability commitments, supply chains, and regulatory frameworks. There are opportunities at all career stages to enhance, diversify or aggregate your skills , to be challenged daily, to enable you to add your stamp of ‘value’, irrespective of role, employment status or career stage.

c) Back yourself: Learn from others and have confidence in your ability to add value. Whilst there are still far too few women in very senior roles in the DC sector and the pipeline of female talent continues to be far too slim, there are roles within this sector / ‘male dominated’ sectors that can be very rewarding. If you are selective and strategic as you map out your career, you can go on a journey where job satisfaction is achievable, and your opportunity to build strong relationships, partnerships and professional networks is enriching.

d) Seek out like-minded people and supporters to help you along your journey. Ask lots of questions, be proactive, curious and assertive - at all career stages. Do not be a wallflower, where you might not be ‘visible’ enough to be respected for your skills, knowledge or work ethic., or risk being overlooked, sidelined or pigeon-holed. Sadly, this happens so it is important to ‘stand out’ and ‘stand up’ as far as showcasing your enthusiasm and your willingness to learn, coupled with demonstrating a strong work ethic – surround yourself with these same like-minded people.

e) Never Stop Learning: Showcase your ‘can-do’ mindset and commit to lifelong learning to ensure you give yourself the best chance of building a resilient career pathway. It will equip you with adaptable tools to work alongside technological change, as the sector continues to grow and evolve. An openness to learning will ensure you remain relevant and employable - quite simply life never stops teaching, and this industry continues to evolve at pace.

f) Role Models: The significance of having role models, from school age and as you develop your career should not be underestimated. Role models show us firsthand that it is possible to break through stereotypes, to inspire future generations of female leaders, and to contribute to creating a more equitable and sustainable digital future.

Seek out female and male role models and you might be pleasantly surprised with their generosity of advice.

g) Service: As you advance in your career don’t forget there is value in giving back, and advocating for other women when you are in a position to do so. Being prepared to share your own insights, both the highs and lows, means others may benefit as they face similar challenges along the way. Service can take many forms, and there are plenty of opportunities to do this within the DC industry with outreach programs, through mentoring programs, or involvement in community partnerships.

h) Celebrate: Take time to recognise and celebrate your achievements and successes along the way. Appreciate what you’ve learnt, the aspects of your professional roles that you enjoy, identify what really feeds your soul, what gives you that unique sense of purpose and satisfaction.

i) Allyship: In an industry which can be very tough, competitive and demanding, it is important for women to be able to recognise conflict, bias’, unethical behavior and feel strong enough to call these out. This is easier said than done and takes courage. Finding a sounding board for safe and confidential conversations can be achieved by seeking out allyship –regardless of gender these types of relationships are important to establish and foster.

More than just networking, authentic allyship is about forming genuine connections where each party advocates for the other, and trusted conversations can be held. Seek out allies at all stages of your career.

j) Self-Belief: Believe that “You’ve got this!” Let’s not confuse competency with your ability to have a successful career; many have learnt their trade on the job or have been very lucky to fall into roles during their career irrespective of whether they were ready for them.

There are some standout examples of organizations providing inspiring training, internships and development programs which will enrich your competency over time, if you feel you lack confidence in your ability. Women do not back themselves enough; research tells us that women feel the need to tick the majority of job description boxes whereas men will apply with far less ticked. This tells us that:

Genders are wired differently regarding self-assessment of their levels of competence –the challenge and biggest personal inhibitor to success for women is generally confidence (not competence). Therefore, self-belief, and feeling good about your self-worth, are key success factors to underpin your confidence. Radiating confidence will support your success in this industry.

Thanks W.Media for the opportunity to share my perspectives on these great questions.

END OF INTERVIEW