Singapore: The quest for green data centres

Written By

genessa chew Module
Genessa Chew

Associate
Singapore

I am an associate in the Corporate and Commercial practice group in Singapore. I advise on commercial transactions, corporate governance, and regulatory issues.

sandra seah module
Sandra Seah

Partner
Singapore

I am a corporate lawyer with extensive experience in local and cross-border mergers and acquisitions, joint ventures and collaborations, and other general corporate matters.

1.2 Regulations on Water

The government aims for data centres in Singapore to achieve a water usage effectiveness of 2.0m3/MWh or less within the next 10 years. Data centre businesses are subject to general legislation on water consumption and wastewater discharge, such as those listed below.

1.2.1 Water Efficiency

As per the Public Utilities (Water Supply) Regulations, data centres that have an annual water consumption of at least 60,000m3 must comply with the Public Utilities Board (PUB)’s Mandatory Water Efficiency Management Practices. These practices include:

  • submitting record(s) showing the volume of water supplied to the site(s) in the previous year;
  • submitting a Water Efficiency Management Plan to PUB;
  • installing private water meters at key water usage areas within the premises to monitor water usage; and
  • appointing at least one Water Efficiency Manager

1.2.2 Wastewater

Wastewater, such as water discharged from a data centre’s cooling system, would qualify as “trade effluent” under the Sewerage and Drainage Act 1999. Trade effluent refers to any liquid, including particles of matter and other substances suspended in the liquid, that is the outflow from any trade, business, or manufacture or of any works of engineering or building construction.

Before trade effluent can be discharged into the public sewerage system, PUB’s approval must be obtained, and the trade effluent must satisfy the standards set out in the Sewerage and Drainage (Trade Effluent) Regulations.

When trade effluent enters the public sewerage system, the trade effluent must:

  • not exceed 45° Celsius;
  • have a pH value of between 6 and 9;
  • have caustic alkalinity not exceeding 2,000 milligrams of calcium carbonate per litre; and
  • be free or have limited quantities of certain substances as prescribed by the Sewerage and Drainage (Trade Effluent) Regulations (e.g. toxic industrial waste, calcium carbide, petroleum spirit or other inflammable substance).

1.2.3 Government incentives

Operators of data centre businesses may tap on PUB’s Water Efficiency Fund, which incentivises organisations to develop efficient and innovative ways to manage their water consumption.

1.3 Regulations on building infrastructure

When embarking on the construction of a data centre, data centre operators will need to adhere to the relevant environmental sustainability standards for building developments as well as seek various permissions and licences from relevant government authorities, such as those listed below.

1.3.1 Code for environmental sustainability of buildings

The Code for Environmental Sustainability of Buildings (Code) pursuant to the Building Control (Environmental Sustainability) Regulations 2008 applies to building works that (i) involve a gross floor area of 5,000m2 or more; (ii) involve increasing the gross floor area of an existing building by 5,000m2 or more; or (iii) relate to an existing building which involve a gross floor area of 5,000m2 or more, unless exempted. The Code sets out the minimum environmental sustainability standards for building developments, and methodology for determining environmental performance and compliance with the Code. The standards in the Code relate to energy efficient systems, renewable energy use, daylighting, temperature control systems, etc. 

1.3.2 Urban Redevelopment Authority (URA)

For data centre operators looking to acquire and convert premises into a data centre business, obtaining URA approval would likely be necessary. Planning permission from URA is required for development and building works, including changes in the use of existing premises, unless the works fall under the Planning Permission Exemption List (which mainly comprises minor development or building works).

Before applying for URA’s planning permission for any development of land (excluding conservation areas), a qualified architect or engineer must be engaged to (i) prepare development plans according to the requirements of the Planning Act 1998 and URA; (ii) submit to URA a declaration that the qualified person has prepared the plans; and (iii) provide a copy of every plan of the development approved by URA to the architect or engineer supervising the development, as per the Planning Act 1998.

URA imposes certain restrictions on the permitted uses for various kinds of premises. These restrictions impact where a data centre business can operate. As “e-businesses”, data centre businesses cannot be conducted in certain properties, such as shophouses, state property on interim tenancy, mixed commercial and residential developments, Civic and Community Institutions, and sports and recreation buildings.

1.3.3 Singapore Civil Defence Force (SCDF)

Data centre operators need to obtain approval from SCDF before implementing any fire safety works in a building. This includes changing the design and layout of fire compartments or spaces that affect means of escape, and the relocation of fire safety products. Fire safety plans must be prepared and submitted by a qualified architect or engineer on behalf of the building owners in accordance with the Fire Safety Act 1993.

1.3.4 Building and Construction Authority (BCA)

Before commencing building works for a data centre, BCA’s approval for the proposed building works must be obtained by the developer of those building works. This requirement does not apply to minor works that are exempted under the First Schedule of the Building Control Regulations 2003.

The Building Control Act 1989 defines “building works” as encompassing the (a) erection, extension or demolition of a building; (b) alteration, addition or repair of a building; (c) provision, extension or alteration of any air conditioning service or ventilating system in or in connection with a building, and includes site formation works connected with or carried out for the purpose of (a), (b) or (c).

The plans for the building works accompanying any application for approval must be prepared and signed, or be accompanied by an endorsement signed, by an appropriate qualified person as stated in the Third Schedule of the Building Control Regulations 2003.

1.3.5 National Environment Agency (NEA)

A prospective data centre operator may need to make various submissions and applications to the Development Control Department of the NEA for industrial developments.

1.3.6 Jurong Town Corporation (JTC)

If a data centre is situated on JTC land, plan consent is needed from JTC to carry out major building works, such as redeveloping property on JTC land. JTC’s plan consent would also be needed for fitting-out or renovation works, regardless of whether such works are temporary or permanent.

Conclusion

The macro trends, such as the exponential use of AI, virtual interactions and robotic systems will propel aggressive growth in the digital economy. However, it is also abundantly clear that the procurement and use of green energy as well as effective resource management will be the key to unlocking further capacity in this exciting sector.

With the All-of-Government approach to Green DCs, there is a clear pathway for a more sustainable growth of DCs in Singapore. To participate in Singapore’s sprint in the digital economy, energy, water and building management will all come into play. It is highly anticipated that smart and innovative solutions will be developed and harnessed to meet or even exceed the nation’s sustainability goals whilst maintaining cost efficiency and grid resilience.

 

To access The quest for green data centres – Part I, click here.

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