Written Answer · 2026-10-06 · Parliament 15
Adequacy of AI Computing Resources for Local Enterprises through Domestic Facilities and Overseas Cloud Services
Mr Saktiandi Supaat asked Mrs Josephine Teo, Minister for Digital Development and Information, whether the Government assesses the adequacy of AI computing resources available to local enterprises through domestic facilities and overseas cloud services, and whether any shortfalls are projected through 2030. Mrs Teo replied that local enterprises' AI computing needs are currently met through a combination of local and overseas data centre capacity, with industry feedback indicating sufficient supply, but that demand and supply conditions have not matured enough to project future shortfalls, so the Government will focus on monitoring market conditions and maintaining diversified overseas compute sources.
Why it matters
Josephine Teo said local and overseas data centres currently meet local enterprises' AI compute needs with sufficient supply, but declined to project any shortfall to 2030 because demand and supply are hard to forecast.
Key Points
- • Data centres are a key enabler of the digital economy, supporting AI workloads and digital services for enterprises and society.
- • Local enterprises' AI computing needs are currently met through a combination of local and overseas data centre capacity.
- • Industry feedback on market availability and price indicators suggests current supply is sufficient to meet existing demand.
- • The Government will continue to facilitate sustainable growth of local data centre capacity while maintaining diversified overseas compute sources, to meet varying needs for latency, resilience, security and data governance.
- • Compute demand and supply conditions have not matured and are difficult to project, so the Government will focus on closely monitoring demand and market conditions while keeping Singapore connected to multiple compute sources for price competitiveness and supply resilience.
The Government maintains that current local and overseas compute supply is sufficient for enterprise needs, and will keep expanding local data centre capacity sustainably while diversifying overseas sources, but it declined to project or commit to a specific forecast of AI compute shortfalls through 2030.
Mr Saktiandi Supaat's question reflects concern about whether local enterprises could face a shortage of AI computing resources in the medium term, particularly any gap projected through 2030.
The response signals a pragmatic monitor-rather-than-forecast approach to AI compute policy, prioritising sustainable local data centre growth and diversified overseas compute sources over rigid long-term supply planning.
"Compute demand and supply conditions have not matured and are difficult to project."
Participants (2)
Original Text (English)
SPRS Hansard · Fetched: 2026-10-21
52 Mr Saktiandi Supaat asked the Minister for Digital Development and Information (a) whether the Government assesses the adequacy of AI computing resources available to local enterprises through domestic facilities and overseas cloud services; (b) if so, how; and (c) whether any local shortfalls in AI computing resources are projected through 2030.
Mrs Josephine Teo : Data centres (DCs) are a key enabler of our digital economy, supporting AI workloads and digital services that our enterprises and society rely on.
The AI computing needs of our local enterprises are met through a combination of local and overseas DC capacities. Industry feedback on market availability and price indicators for compute suggest that there is sufficient supply to meet our current needs. Nonetheless, to meet the evolving demand for different AI workloads with varying needs for latency, resilience, security and data governance, we will continue to facilitate the sustainable growth of our local DC capacity, while maintaining access to diversified sources of compute overseas.
Compute demand and supply conditions have not matured and are difficult to project. For the time being, we will focus on closely monitoring demand and market conditions, and keeping Singapore connected to multiple sources of compute to better support price competitiveness and supply resilience.