International consultancy TBH has released a report titled “Powering Data Centres: Are Integrated Utility Precincts the Answer?”, proposing a shift from traditional standalone data centre models to integrated utility precincts. This change is deemed necessary as regional electricity demand from data centres is expected to quadruple to 10.7 GW by 2035, according to the report.
The report highlights that traditional models, where facilities independently secure power, cooling, and water, are becoming less viable in constrained environments like Singapore. TBH Director and Partner Meiske Sompie emphasised the importance of integrated utility precincts, stating, “In Singapore, every drop of water and every megawatt of power counts. Data centres can either compete for scarce resources or catalyse smarter infrastructure systems.”
The integrated model proposes co-planning renewable generation, battery storage, and water treatment at a precinct level, rather than duplicating infrastructure across individual sites. This approach aims to improve capital efficiency, optimise resource utilisation, and enable large-scale integration of renewable energy.
The report also points to Singapore and Malaysia as early indicators of these constraints. Singapore’s 2019 moratorium led to stricter performance thresholds, whilst Malaysia faces scrutiny over water consumption in Johor. Microsoft’s SG2 facility in Singapore, which uses rainwater harvesting, exemplifies this shift towards more sustainable practices.
TBH’s proposal not only benefits operators but also aligns with government and community planning objectives, supporting stronger Environmental and Social Governance (ESG) outcomes. The integrated approach could serve as a model for sustainable digital growth in Southeast Asia.
