5G and government support boost renewable use for data centres

  • Ace Global
  • December 30, 2021

Athough it is not optimistic for data centre operators in Singapore to have solar and wind as their primary energy source by 2025, the new government support for green energy and the introduction of 5G network will offer opportunities for the renewable energy sector in the Singapore.

According to Vertiv’s report, data centre respondents in Singapore announced that about 21% of their data centre power would come from solar and wind by 2025, this rate has been decreased 34% when compared to 2014. On which fuel will continue to power their data centres include 15% oil, 14% natural gas, 13% solar energy, and 8% hydroelectric power.

The Vertiv’s Singapore country manager Hitesh Prajapati viewed that it still remains optimistic through more mindful of the feasibility and economics of the regular energy sources include solar and wind. Moreover, in an interview with Asian Power, Prajapati said that the reality check on the limited adoption of solar in the industry and lack of viable wind energy options may have been the main reason that softened respondents’ optimism.

Although the commercially viable ways to use renewables for data centres could be challenging, the practical knowledge that data centre companies share will bring more innovation and development around sustainable energy sources within the industry.

1. 5G upgrade

In 2019, the Infocomm Media Development Authority (IMDA) rolled out auctions for 5G spectrum brands. The winners will roll out Standalone (SA) networks from January 2021, provide coverage for at least haft of Singapore by the end of 2022, and scale up to nationwide coverage by the end of 2025.

Throughout sectors, the power sector will be an outstanding one to gain profit when the technology is rolled out. In particular, one of the highly expected uses of 5G is its application in a smart grid. The smart grid an electrical grid equipped with automation, communication, and IT systems, which can be monitored the flow of power at different points, modulate power generation, and distribute to meet various loads.

When 5G is implemented, it will vastly improve the efficiency of power distribution, as well as provide greater transparency to users over their consumption of power. It will especially enable fast communication between smart devices and facilities.

This connectivity will greatly support manufacturing, transportation, healthcare, government services, and other functions that can be equipped with smart capabilities, which is a significant step towards the country’s goal of becoming a smart nation. Combined with various distributed edge data centres, The 5G network has the potential to enable providers to deliver services up to the last mile without any drop in quality or postponement.

2. Government initiatives for green energy souces

The implementation of the Carbon Pricing Act (CPA) also supports the renewables sector, which pushes to monitor the greenhouse gas emissions of industrial facilities. Those that emit more greenhouse gases than the set threshold is required to pay a carbon tax, while those who pursue renewable and energy-efficient practices get tax incentives.

With strong business incentives to waste less energy and implement strategies for energy optimization, data centre companies are encouraged to invest in energy-saving technologies such as efficient cooling infrastructure or data centre management tools to monitor and manage energy utilization at different points in their facility.

The majority of Singapore’s energy sources come from natural gas, but data centres can still use power purchase agreements and carbon credits while taking initiatives to convert to renewable energy sources. Furthermore, the government has planned to transform the city’s energy supply over the next 50 years by exploiting 4 switches in terms of natural gas, solar, regional power grids, and emerging low-carbon alternatives.

There is also the growing number of data centres getting the Green Mark of approval from the Building and Construction Authority and Infocomm Development Authority of Singapore (BCA-IDA), a rating system that encourages data centres to adopt more energy-efficient designs and systematic operation and management of data centres.

In particular, Solar power is viewed as the most hopeful renewable energy source in Singapore. As an early adopter, Singapore can be the baseline for innovations in energy storage technologies as it moves towards its energy storage target of 200MW by 2025.

With the combination of the next generation of wireless networks are 5G and Government initiatives for green energy sources, Singapore Business registration is the best choice for foreigners who are interested in getting tax incentives and technology development. If you require further assistance with Singapore incorporation, feel free to call/ WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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