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New data centres like Facebook’s can strengthen local IT core: Experts

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Such centres based here could create roles for local teams to run operations

The setting up of new data centres here, such as Facebook's $1.4 billion operation in Tanjong Kling, could strengthen Singapore's "local IT core", creating roles such as network engineers and cyber security specialists to support the centres' daily operations, said human resource experts.

Last Thursday, Facebook said its new data centre here - its first in Asia and 15th in the world - will support hundreds of jobs and form part of its growing presence here and in the region. The centre is expected to start operations in 2022.

The move follows the likes of Google, which employs about 1,000 people in Singapore and is building a third data centre here in Jurong West, expected to go online in 2020. It started building its first South-east Asia data centre here in 2011.

A Facebook spokesman said its data centre projects generally involve hundreds of millions of dollars in investment over the long term, supporting "thousands of construction jobs and hundreds of operational jobs".

Mr David Leong, managing director of PeopleWorldwide Consulting, said demand for data centre employees has increased, with engineers and technicians "hard to come by". He said foreigners are needed to boost the sector's growth and they could initially account for up to 40 per cent of total hires.

ManpowerGroup Singapore's country manager Linda Teo said locals may eventually run the show.

"As it is more cost-effective for a local team to handle the data centre's operations, employees sent over by the organisation to set up the data centre will also be tasked with creating and building a local team that may eventually take over the operations," she added.

A study by real estate services firm Cushman & Wakefield found last year that Singapore is the most robust market out of 10 Asian hubs, including South Korea and Japan, in terms of business operations for data centres. This is due to its network infrastructure and connectivity to major Asia-Pacific markets.

A report by Structure Research also predicted the data centre industry's market value here would be lifted to about $1.6 billion by 2020.

There are 50 or so data centre operators here, of which six - such as real estate investment trust Digital Realty - capture 70 per cent of the market share, said Cushman & Wakefield associate director Lynus Pook.

International players here include Equinix and Global Switch. Local players include Keppel DC Reit and ST Telemedia.

"Data centre capacities are set to grow by at least 10 to 15 per cent annually, among the key players," Mr Pook added.

In turn, the sustainability of Singapore's data centre market depends on factors such as its 5G network infrastructure and ability to keep costs competitive globally, he said.

BUSINESS & FINANCE